Credit Card Balance Transfers – Basics That You Should 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 » Credit Card Balance Transfers – Basics That You Should Know

Credit Card Balance Transfers – Basics That You Should Know

By
Add to Favorites:

One of the best ways to reduce your debt and clear is off fast is by opting for balance transfers on credit cards. However, this is possible only if you choose the right credit card for this purpose. Considering the number of options that are being offered by innumerable financial institutions, the chances of you choosing the right one for you needs is bleak if you don't know the basics about balance transfers. Let us take a look at the information that you should know before you go in for one.

Choosing the right card

The concept of balance transfer will work in your favor only if you get this step right. While opting for a particular card, you should ensure that the interest rate on that card is lesser than that on your current one. There are a number of credit cards that offer a low interest rate only for a short span of time and then revert to the regular APR. Hence, find out for the duration of the promotional interest rate you are being offered. If the bank you are opting for is asking for overhead fees like admin costs and balance transfer costs, then, it is better to avoid such options. There are innumerable institutions that not only eliminate these costs, but also give really low interest rates in order to increase their customer database. Opt for such credit cards.

Impact on your credit score

While balance transfer is indeed a good option to consider, it is not recommended to go in for it often. You should know that this can have a negative impact on your credit score, especially if you opt for the wrong cards. You should be very careful and ensure that you are indeed bringing down your debts and not increasing it, if you don't want it to have adversely influence your credit report.

Complete the balance transfer successfully

Most people think that the process is complete if the balance has been transferred to the new card. They tend to forget that the old card has to be closed if the transfer should be considered complete. Not closing your old card can increase your financial liabilities since you will still have to continue paying annual fees on it. Some companies also charge inactivity fee if the card is not used for a long span of time. Hence, ensure you close your old card before you start paying off the balance on the new one.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading
Affirm: A ‘Friendly’ Credit Alternative

Affirm: A ‘Friendly’ Credit Alternative

By Angela Rose, Posted: April 5, 2017

In 1789, Benjamin Franklin wrote, "In this world nothing can be said to be certain, except death and taxes." His statement holds true even today - especially when it comes to personal finance tools such as credit cards. Continue reading