The advantages of opting for balance transfers on credit cards

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The advantages of opting for balance transfers on credit cards

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Have you utilized the maximum amount on your credit cards with no means to repay them? Are you looking for a solution that can help you get out of your financial misery? Do you want to clear your debts fast so you can work on rebuilding your credit history? If your answer to any one of these is "yes", then you have to consider the option of applying for balance transfers. Though this option is very helpful, not a lot of people are aware of it. Opting for this can be useful in ways more than one. Let us take a quick look at how you stand to benefit if you opt for balance transfers.

Lower rate of interest

One of the biggest benefits of opting for credit card balance transfers is the low interest rate. This, by itself, can reduce your financial burden. If you are paying an interest rate of 19% APY on your current card and you get to transfer the balance to another card that is offering 0% APY for the first 12 months, you have literally hit a jackpot. Just think about the amount of money you can save in this process? Finding low interest rates will not only bring down the overall outstanding balance, but is will also reduce the monthly EMIs you will have to pay to the bank, thus providing you some financial relief. If you pay off the balance completely within the first 12 months, you will have to pay a single dollar as interest on the transferred amount.

Consolidating debts

Balance transfer is a benefit to people who have too many credit cards with high outstanding balances. You can bring all those balances under one umbrella by applying for balance transfer on just one card that is offering the lowest interest rate. This is a great way to ease your monthly finances. You will have to pay monthly to just one bank as compared to multiple banks. Not only will this reduce your burden, you can also clear the balance in a short time.

Repairing credit report

If you have large outstanding debts that you are unable to repay, it is quite but natural that your credit report has been tarnished. Opting for a balance transfer is one of the ways in which you can start rebuilding your credit report.

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