- Balance transfer fees:
Most of the credit cards companies will charge you transfer fees. Usually, the fee is the percentage of the whole transfer amount, which is in the range of 2-3 % of the total debt amount. If you have a balance transfer credit card you will not be required to pay such kind of fee. Whether the fee is waived for a period or forever depends on the type of credit card that you have. At times, in order to waive off the fee, you need to make the balance transfer while filling in the credit card application form. While at other times, you must pay off the entire balance transfer amount by the initial six months, extending up to a year, in order to hold legibility for getting the fee waived off. Interestingly, a few credit cards may not charge the applicable fee on balance transfer, because they enjoy the benefit of receiving succeeding finance charges.
- Finance charges
Another very important benefit is the low interest rate which is charged on such cards. The best deal is when you get 0% APR for life of the balance transfer. This way you need not pay interest on the transferred balance. Further, the rate of interest rate accelerates on other purchases made via the card; however, the balance that has been transferred is free of any interest fee. You must consider the interest rate before choosing a balance transfer credit card. You should also be aware of the terms and conditions that you are required to fulfill in order to be entitled for lower introductory fee.
- Consolidating debt
A balance transfer’s credit card helps you to consolidate your debt. If you have all your debts under single card, paying it off becomes convenient, and also allows you to keep a track on your purchases and pay off accordingly.