Understanding balance transfers and what matter the most during this process

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Understanding balance transfers and what matter the most during this process

Understanding balance transfers and what matter the most during this process


Updated: April 26, 2017

Many of us have fallen into the trap when we read about attractive offers on credit cards. Many a time, we opt for the credit card and blindly shop for earning some rewards which in the end are not worth the amount we spent in the first place. It is only much later that we realize that we have way too many unpaid bills and very little money at hand to pay it off. In addition, the interest rates, credit card fees and other factors that are added on making your outstanding dues much higher than the money you spent. If you find yourself in this predicament, it may be time to consider a balance transfer.

You may have heard about balance transfers and even received emails about them many times. When considering a balance transfer, take care to read the terms and conditions listed in the fine print and ensure you are opting for a better deal on the new card. Not everyone can be an expert on credit cards. All you need to do is to figure out whether you can cut down on interest rates and reduce the amount you need to pay with a balance transfer. There are many different kinds of offers available in the market but be careful before you sign-up for it.

When considering balance transfers, have a clear understanding of the interest free duration. Also consider the payment you will need to make to clear off the dues on the new card. Balance transfer deals may say that you will need to pay 0 interest for the amount transferred, but do check about the fees that may be applicable. If there is an annual fee, check if it’s an amount that you can afford to pay each year. Do not forget to look out for any additional fees on the card. Generally balance transfer offers would be for a limited period so make sure you clarify this point thoroughly.

When looking at a balance transfer deal, whether you are talking to credit card agents or directly with a bank, ensure you understand every detail. People sometimes wrongly assume that low interest rates are also applicable to new purchases. This is not the case most of the time. There may be a different interest rate on any new purchases made using the new card. Make sure you do not add to the already large amount you are indebted to clear. If you pay attention to your credit card statements and balance transfers, you will be able to secure a very good deal on them.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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:

Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

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
How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading