Reap the benefits of opting 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 » Reap the benefits of opting for balance transfers on credit cards

Reap the benefits of opting for balance transfers on credit cards

Add to Favorites:

The recession left a lot of people in bad finances and despite four years since the economic downturn started, some people are yet to get back on their feet. Before the recession, credit card companies issued their cards without second thoughts to almost every applicant who applied. However, once reality struck and the rate of delinquencies and write offs increased, the lenders realized their folly and tightened their belts. But, they left in their wake millions of customers who had amassed insurmountable debts that were beyond their means of repayment. It is under these circumstances that the concept of balance transfers on credit cards gained prominence. The benefits that come along with this process are many, with a significant impact on the finances of the person applying for it. Let us take a quick look at some of the benefits that you will reap by opting for this.

Benefit #1: Lower rates of interest

When a person opts for balance transfers, it is generally transferring the outstanding balance from a credit card with high interest rates to a credit card offering low interest rates. This move will not only bring about a significant reduction in the amount of money to be repaid, but will also reduce the term of repayment, thus helping the person to pay off the debt in full earlier than expected.

Benefit #2: Improve credit score and credit history

The credit score and credit history are very crucial documents that decide the financial well being of a person. When credit card debts are high and the payments are not being made on time, it is definitely going to tarnish your credit history and pull down your credit scores. Opting for balance transfer will give you an opportunity to repair the mistakes you made and improve your score over a period of time.

Benefit #3: Consolidation of credit card debts

With balance transfers, you can transfer the outstanding balances on multiple credit cards to just one credit card offering favorable terms. This will ease your financial burden to a great extent. You need not worry about paying dues to multiple banks that charge you an arm and a leg for their cards. Instead, you can focus on repaying the balance on credit card to which all the balances have been transferred. In addition to lowering the interest rates, consolidation of debts will also reduce the number of years needed to repay the balances on the card.

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
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading