Why Balance Transfer is a good option

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 » Why Balance Transfer is a good option

Why Balance Transfer is a good option

By
Add to Favorites:

A lot of us are guilty about opening several new credit cards while we still have large outstanding credit on our old ones but not that bad when you are planning of getting a credit card balance transfer. It actually is very easy to do it, as long as you have your social security number and an active mailbox then you`re good to go.

Credit card business is one of the biggest industries nowadays. With the interests and fees that cardholders pay, this sure makes a big fortune for credit card companies. Sixteen percent is the average annual percentage rate on the majority of credit cards. With an interest as high as sixteen percent, it would not be too easy paying off for the credit card due to the charges that is consistently being added. This is one seen reason why companies came up with balance transfers.

Offering a balance transfer credit card is a way for credit card companies to attract consumers to get a card from them. This is how balance transfer works: your old credit card balance is transferred to you new card thus you now owe to your new company. Once the balance transfer had been completed, the card holder is given a grace period to pay the dues with a lower interest charge. Zero to two percent interest applies and can last up to six months to a year after making the balance transfer.

In most cases, this method could be very advantageous to the card holder for he is left with a balance with a lower interest. This strategy can allow a person to apply for another card when the old balance transfer has expired. Just remember to close the old account when opening a balance transfer card.

Opting for a balance transfer sure is a good thing on the consumer`s part but this would mean you have to be more diligent. More often than not, there are some hidden charges that applies so better have all the fees and interests be clear to you to avoid regret and conflict in the end. Also don`t forget to check on the annual or joining fee that you have to pay for. It might be way higher than the average fee, ask the back why this is so and if you are not comfortable with the fees and rates then there could still be some other banks that you can have the balance transfer with.

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

Related Research:

Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading
Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading