How Balance Transfers Help You Reduce the Interest Rate You Pay On Your Credit Card
Advertising Disclosure is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Balance Transfer Cards » How Balance Transfers Help You Reduce the Interest Rate You Pay On Your Credit Card

How Balance Transfers Help You Reduce the Interest Rate You Pay On Your Credit Card

Add to Favorites:
For one to be qualified for a balance transfer, one is needed to have a very good credit standing. Balance transfer is one of the sure ways on enjoying reduced interest rates on credit cards. With a balance transfer, one`s old credit card debts are transferred to a new credit card. With your new company, you are required to pay off all your debts in a lower rate at a certain period of time. If one is able to make the full payment within the given period, then an interest of up to 0-2% can be applied but if one failed to do so then chances are you will be paying off the balance higher; higher than what you have thought. Offering a balance transfer is one of the ways of credit card companies and banks to convince the public to use their credit card. Since this is business, you too should also be careful for you might end up getting tied with a company with high interest than your old one. Deceit is a normal thing in business; if you don`t get too careful then you might be their next victim. Hidden charges are more often than not where a credit card business gets its profit so be very careful with the rates. There are some tools that you can use online for you to have an idea how much you have to pay monthly. This will give you a heads up whether you can manage the monthly payment or not. So when a company gives you an offer which is hard to resist, better think again. Offers which are too good to be true can have some drawbacks in them. A zero percent rate may be given to you but rates on purchases maybe too high. Do your homework wisely. Most companies offer zero up to two percent interest rate on the first six to twelve months. If you are able to pay off your debts within the said period, then the low rates applied. However, when you fail to pay off, then you may even get penalty and be charged of higher rates. So if you are considering of having a balance transfer, be sure that you can manage the monthly payment or you`ll just be burdened with even a higher rate than the interest applied on your old account. Card holders with a good credit standing are the most qualified people for the transfer. Banks and credit card make a gamble when they offer you a balance transfer so there might be some twists on the compromise made between you and your new credit card company. There might be some hidden charges which are not explained or introduced to you, so demand for the bank`s assurance that such hidden rates won`t apply. Even if there are some ways on how you can straighten up your finances, there still is nothing better than practicing yourself to be the wisest spender. Use your cards only on things which are necessarily needed.

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

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading