How to save money on balance transfers

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » How to save money on balance transfers

How to save money on balance transfers

Balance transfer is switching your outstanding balance from one credit card to another. This is profitable when the other card issuer offers an incentive or promotion. It is a risk to go for balance transfers too often as it affects your credit score. Therefore when you actually go for a balance transfer it should be a wise decision.

Here are some ways of making a good saving through balance transfer.

Interest on credit card outstanding balance

Good balance transfer offers give you a 0% interest rate promotional period, which could extend between 6 months to 18 months, depending upon the credit rating of the individual. If you have over 2000 dollars of outstanding debt on a credit card and your monthly expenses didn`t permit you to pay off any part of that debt in the previous card; a balance transfer will help you save more than 200 dollars at least, which is quite a substantial sum of money.

Good to avoid stress

Credit card customers are always in the race against their interest rates. A lot of times this interest rate keeps accumulating so much that customers do not really have a chance to address the outstanding debt. Often having a debt with mounting interest rates could be cause of worry and a lot of stress. But with balance transfers that have become synonymous with 0% introductory periods, credit card customers get a chance to address the debt, through a proper payment plan over 12 months, without worrying about the confusing numbers added by the interest every month. This reduces the stress and clutter in your mind to a great extent.

Pay off a part of the debt initially

Some balance transfers are lucrative. However, there is a condition that is sometimes applied wherein credit card customers need to pay off a part of the debt before the balance transfer. This could be a blessing in disguise if you have a massive debt because to get the offer you would push yourself to pay up the money and get your debt down. This could indirectly transform to spending less on other things.

Invest the saving

A lot of people are held back by inertia in paying off their debt. Balance transfer gives them the chance to pay off their debt without interest. It is like an interest free loan. So you could actually invest he interest saving and make a profit.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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:

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Posted: December 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: December 1, 2017

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading