For individuals with credit card balance, there can be more attractive deals than just enjoying a 0% balance transfer interest. Why is this so? It is because for a span of time which is usually six o twelve months, credit card companies are lending you their money for free. For those with a balance revolving, this can be a big savings for them when it comes to interest charge.
It is a usual thing for Americans to hold a credit card with a debt or balance amounting to $10,000 or even more. Typically, an American family pays credit card interest charge which goes up to $1000 yearly with rates with double digits; a rate which is a little higher than 0%.
With these figures mentioned, it is no wonder why a lot are attracted to go for balance transfers. Before considering of taking any balance transfer offer, it is important that you take a very close look on the deals - see whether this is the kind that you really wanted and needed.
Who are eligible for a balance transfer? A balance transfer is offered to consumers who were able to maintain an impressive credit standing. If you are the kind of person who finds it very difficult to meet due date payments then you will find yourself almost drowning with sky-high interest rates.
The most qualified person for a balance transfer is one who makes sure to pay off his debts on time or within the provided grace period. If you think you are then, here are some other things you need to know about balance transfer:
Go for a company that offers 0% on balance transfer and on purchase. There are some companies which absolutely offer 0% on transfers but not on their purchases. And on top of that, a consumer is also required to pay the balance transfer first which will kind of bury the high interest rate charges.
When you are offered something which is free, you should make sure hat it is really free. There might be some hidden charges so better check on this.
It always pays to be an on-time payer. Even if you missed or made a late pay just once in your whole life, you still aren`t spared of the high interest and penalty charges. To keep up with the deal, it is better if you go for an electronic bill payment.
If you are not a very choosy person, then it is time you should. Don`t get easily blinded with the rates offered to you. You might still want to look for no annual fee credit cards which offer cash rebates.
For some, it is not easy to manage their finances but if you`re compulsive spending is what`s giving you headache every payment period then it is high time you make a change. Balance transfer, when used with the right approach and company, then it will be of great benefit to you. So shop around until you get the best deals and offers.