Are balance transfers as appealing as they sound? - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » Are balance transfers as appealing as they sound?

Are balance transfers as appealing as they sound?

Answered on | Updated on March 27th, 2011
The content is accurate at the time of publication and is subject to change.

In theory, you have the power to go for credit card balance transfers for as many years as you like. It is however, a temporary solution and must be chosen only by those who know they would be able to make their payments on time, and also possess a good credit rating. Getting a transfer balance spree from one card to another could be harmful. This eventually means that you are moving the same balance every time and not paying it up in completion. A few things that you must consider with credit card balance transfers are mentioned as follows.

You must be wary of your new card spending right from the word go. It is not advisable to spend on the new card, as any new amount incurred on that account wouldn’t have the advantages of the initial offer. It will be among the last payments you have to make. In a similar fashion, you should not spend on your old card. When you do so, you have the risk of piling up the same amount of debts. Typically, you must close the old account after you have transferred the balance.

Generally, companies offering balance transfers tempt individuals with low levels of interest in the introductory period. It important to be fully aware of when your introductory period ends and when the new rate becomes applicable. A mouthful of credit card companies does not apply interests for a term of one year. Nevertheless, they try to compensate for this, by charging users a huge amount of transfer fee. So you must look for providers who offer affordable rates.

Scanning through the market carefully will help you to lay hands on the best offers when transferring your credit card balance. While a few credit card companies do not charge any transfer fees, some others may have the user spend up to 3 percent. Irrespective of what the transfer fee is, and how the interest has been applied, it is important to remember that you would still have to make payments on a monthly basis depending on the terms and conditions you signed up for.

Become debt free at the earliest should be your ultimate motive. Hence you must ensure that you are making sincere efforts to pay off as much of the credit as you can. Paying just the minimum monthly amount isn’t a good idea at all as that way you would take much longer to have your debts cleared off. You will also have the introductory period run out, which will then bring into the picture, a higher interest rate.

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.
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Intro APR on Balance Transfer: 0% 12 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.74% - 25.74% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

Intro APR on Balance Transfer: 0% (first 12 billing cycles following each balance transfer that posts to your account within 45 days of account opening)

Ongoing APR on Balance Transfer: 18.24%, 22.24% or 25.24% variable based on your creditworthiness

Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater

Good/Excellent Credit
See Rates & Fees

Intro APR on Balance Transfer: 0% Intro APR for 12 months

Ongoing APR on Balance Transfer: Variable APR of 15.24%, 19.24% or 25.24%

Balance Transfer Fee: Either $10 or 4%, whichever is greater, will apply on each balance transfer and credit card check

Good, Excellent Credit
See Rates & Fees

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