Five questions to ask before signing up for balance transfers on credit cards

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 » Five questions to ask before signing up for balance transfers on credit cards

Five questions to ask before signing up for balance transfers on credit cards

By
Add to Favorites:
One of the best ways to wriggle out of debts that you cannot easily clear is by opting for balance transfers on another card that have favorable terms and conditions. However, this is a task that is easier said than done. A lot of people who blindly opted for balance transfers without giving it a second thought have regretted their decision which only added to their misery. In order to avoid such circumstances, there are a few questions that you need to ask before you opt for balance transfers on credit cards. Question #1: Is there a promotional offer you can avail? Considering the fact that the credit card industry is highly competitive, banks are stretching themselves thin to ensure they offer irresistible deals to prospective clients. Most of these promotional offers encourage balance transfers by offering zero percent interest rate. Look out for these offers. Before you sign the application form, ask the bank if you are being given that offer. If the answer is negative, then it is wise to shop around and look for cards that can offers you steal deals. Question #2: How long will the promotional offers last? This is a critical question that needs to be answered well in advance. Most banks roll out introductory rates only for a couple of months. Opt for cards that extend the promotional offer for six to twelve months so you can get better value for money and clear off a significant amount of debt you currently have. The new credit card acts that have come into play stipulate that every bank issuing credit cards should roll out the promotional offer at least for a period of six months. Question #3: What are the annual fees, APR and other rates applicable on your card once the promotional offer expires? To avoid undue stress at a later point in time, find out the annual percentage rates and annual fees that will be levied on your card once the introductory period is over. If they are too high, then look for other options that offer favorable fees and rates. Question #4: Are you eligible for the promotional offer? Though a lot of banks do offer introductory rates, not all customers qualify for that. Most of the time, people with really poor credit score and bad credit history are not given the privilege of availing the promotional offer. In such cases, you will need to negotiate with the bank and convince them to offer you a good rate so you can reduce your debts and get going on your way to repairing your credit history. Question #5: Are there any processing fees associated with the balance transfer? A few banks offer introductory rates, but make up for it by charging processing fees for initiating the balance transfer. Irrespective of the amount you would like to transfer, certain banks charge fees which may be quite high. Talk to the bank to find out if the fees can either be waived off or reduced so you can use that amount to clear off your existing dues.

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