Balance transfers on credit cards – The Pros and Cons you need to know

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Balance transfers on credit cards – The Pros and Cons you need to know

Balance transfers on credit cards – The Pros and Cons you need to know

Add to Favorites:
One of the main reasons for people to switch from one credit card lender to the other is because they would like to opt for the balance transfer on the card that has maximum amount due. While balance transfers on credit cards are a great option, things can go wrong if you don`t make a well informed decision. The terms and conditions associated with balance transfers on credit cards and tougher and you might end up from the frying pan into the fire if you don`t choose the right credit card to which you would like to transfer the balance. If done right, there are a number of advantages that come with the territory. However, there are also some drawbacks that you may want to consider. Advantages of opting for balance transfers on credit cards First of all, opting for this gives you the benefit of availing lesser interest rates and reducing your existing balance thus giving you the option of clearing off your dues faster. If you have a huge balance on a credit card that charges a high interest rate and has innumerable fees being levied, then, it is time you considered another card with much favorable terms and made the switch. Clearing off the balance soon will ultimately lead to a better credit score. There are a number of cards that offer very small grace period. In such cases, the interest starts accumulating fast thus increasing your financial burden. Transferring this balance to another card which has a longer grace period coupled with other favorable features can prove to be beneficial to you. The biggest benefit of balance transfers on credit cards is that it gives you the option of bringing together all your dues on multiple credit cards under one umbrella. Most often than not, people with multiple credit cards, end up paying various banks varying interest rates on the balances due thus losing money hand over fist. However, consolidating all the balances due on those cards and opting for the right card and going in for balance transfer on that card will save you a lot of dollars. Drawbacks you will need to consider If you don't choose the credit card on which you would like to opt for the balance transfer wisely, you can calling for trouble. Most often than not, people just do their balance transfer in haste and then realize their folly. However, by then it will be too late! Look out for credit cards that have promotional rates on balance transfers and opt for them. There is a balance transfer fee, processing fee and many other fees associated when you opt for balance transfer from one card to the other. Find out about all the charges that are applicable in your case. Do not go ahead with the transfer until you have weighed all the options and have decided that the balance transfer is the most favorable for you despite all the costs involved.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
Cashback Match Lets You Double Your Discover Rewards

Cashback Match Lets You Double Your Discover Rewards

Posted: June 7, 2017

Discover has always been a leader in the cashback rewards game; with their generous 5% cash back in rotating categories offer, you can earn up to $75 in cashback rewards each quarter. But their latest card takes credit card cash back ... Continue reading