Ways to benefit from balance transfers
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 » Ways to benefit from balance transfers

Ways to benefit from balance transfers

Add to Favorites:

Balance transfer credit cards can be both beneficial and troublesome depending upon the ways and habits of the card holder. It could be used to get rid of outstanding debts and also build a good credit history. At the same time, balance transfers could end up as a negative mark on your credit file, especially if you indulge in them frequently. It could also land card holders in greater trouble if they do not manage their finances well.

When to go for balance transfers?

Balance transfer should not be used as a medium to escape from one debt to another. This will create a negative impression on your credit file. Instead, one should go for a balance transfer only rarely, when there is financial sense. A good balance transfer offer allows you to cut down on your debt and get better terms than your existing credit card. Similarly as per the new credit reforms, a card issuer needs to give the card holder a 45 day notice before interest rate hike. The card holder can either accept the hike or repay the outstanding dues and cancel the card. In such a scenario, balance transfer could be a very good option.

Low interest balance transfers

Balance transfers could prove profitable when one can get a good introductory offer. A lot of balance transfer credit cards offer very low or even 0% interest rate during the introductory period. This gives the card holder breathing space to repay the debt without being concerned about spiraling interests. Hence, one can benefit from a balance transfer, if there is a 0% introductory offer for 6 – 12 months thus waiving off interest completely. The greater the debt, the more is the saving for the card holder.

Reward balance transfers

There are very attractive balance transfer offers that are offered during the festive or holiday season. If you have budgeted to spend a stipulated amount of around $500 for the holiday shopping, for example, you could go for balance transfer credit cards which offer handsome rewards. Also some balance transfer cards offer a $100 rebate if the card holder manages expenses of over $400 - $700, varying from one card to another. Such rewards will ensure that you benefit positively from the balance transfer. Moreover, make sure that the new credit card has a lower or equal interest rate compared to the previous credit card. Only, then will it make long term financial sense.

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

Related Research:

Complete Student Guide: Things To Consider For Your First Credit Card

By Samantha Wheeler, Posted: March 26, 2012

Your first credit card as a student paves the way for your financial history. You must keep it clean and away from defaults to be able to get many beneficial financial help. A useful student credit guide is provided here that will ensure ... Continue reading

3 Retail Perks Your Credit Card Can Get You

By Susan Lou, Posted: December 31, 2011

Sure you take your credit card with you everywhere you go, but do you really know that piece of plastic? Unless you spend your nights reading through the fine print on your credit card contract, you may not be too familiar with all ... Continue reading

Why Lenders Want Consumers To Open More Business Credit Card Accounts

By Samantha Wheeler, Posted: February 03, 2012

These days lenders are actively attempting to encourage small business owners to open up business lines of credit by offering a multitude of new credit card products, some of them linked to very generous reward incentive programs. A large ... Continue reading