Timing your balance transfers to perfection
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 » Timing your balance transfers to perfection

Timing your balance transfers to perfection

Add to Favorites:
If you are indulging in too many balance transfers, you will be looked upon as someone who is not as creditworthy as one should be. Your credit history is of particular interest to banks lending you loans, credit card issuers, insurance companies and even landlords and prospective employers these days. The credit history, score and payment patterns offer an insight into your principles and habits. At the same time, you need to cash in when a good opportunity presents itself. This is why you have to time your balance transfer to perfection, whenever you get the ideal chance.  Here are some tips to consider before going for a balance transfer. Are you gaining a substantial amount? A lot of card holders go for balance transfers to another credit card for 2 reasons. The balance transfer cards usually offer 0% introductory rate. By virtue of this, card holders with more than $1000 of debt, can save a significant amount of money. This is in the form of interests that they needn’t pay anymore during the introductory period. Balance transfer offers also give away opening bonuses and other rewards especially during the holiday season, for milestone expenses. So, you need to ponder over whether you would be saving a significant amount of money, around $200 at least, if you go for the balance transfer. If you are not sure, then the balance transfer transaction isn’t worth the trouble. Has your existing card company hiked the interest rates? As per the new credit card rules, credit card companies have to give you advance notice if they have plans to hike the interest rate. Card holders needn’t accept these terms, in which case, they can pay out the debt and close their card account. This is when you can consider going for a balance transfer. However, it is important to pick the right credit card, even when you have the time constraint to make a quick choice. What is the cost? Balance transfers come with attractive incentives. This could include opening bonuses, introductory 0% offers and many more rewards. However, what is important to consider is the cost at which you are getting those rewards. Cost, in case of balance transfer credit cards, comes through a few parameters. Balance transfer fee is one of the parameters and it is usually between 3 – 5% of the transfer amount. Sometimes, card holders are expected to make an upfront payment of a portion of the balance on the previous credit card. The other factors There are some minor factors which need to be considered before going for a balance transfer as well. One of the factors is the credit limit. Your credit score depends on your credit utilisation ratio. This means for the same debt, a lower credit limit could reduce your credit score. You would want to avoid that at any cost. Another factor to consider would be the interest rate after the introductory period. If it is higher than the existing credit card rates, it could become a tricky decision.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

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

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading