How can I make a wise balance transfer? - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » How can I make a wise balance transfer?

How can I make a wise balance transfer?

Answered on | Updated on August 10th, 2010
The content is accurate at the time of publication and is subject to change.

You may already know that many credit card companies offer balance transfers without any charge. What consumers do not know, however, is that more often than not, the company has some fine-print detail that would eventually cost more. For instance, the company may charge 0% for the transfer, but does not do the same for purchases. Also, a company could offer a balance transfer rate of 0%, but it does not mean that the 0% rate will apply to everyone. If the consumer happens to have a bad credit history, then the 0% rate simply does not apply. Moreover, this kind of rate applies for only six months or an entire year, depending on the credit card company.

What the consumer therefore has to do is to first make an analysis of his or her credit card debt. In doing so, the consumer must identify which among his or her cards have the highest interest rate and base his decision in choosing another credit card from this analysis. The consumer should also keep in mind that it pays to be highly selective when it comes to shopping for credit cards and choosing which one to do a balance transfer with. Make sure to read the fine prints on each credit card, and choose the card with the best and beneficial features such as fraud liability coverage, no annual fees, and cash-back plans. Think long term and ask yourself, would the card benefit me even after the balance is paid off?

In some instances, offers for balance transfers will come from existing accounts you already have. The wise and better choice is to accept the offer if that / those accounts do not have existing balances. What credit card companies do is to recompense the balance on the lower rates first, gradually adding more interest to the amount you are paying.

You may want to take advantage of the “Grace Period” given by companies. Such Grace Periods last up to 25 days. The best way to make full use of this period is to pay or transfer the balance in full by the payment deadline. You can then rest assured that no interest will accumulate on any balance after this point, as long as such balance is not outstanding.

Another tip in making balance transfers is not just paying the minimum. When the consumer pays only the minimum, those who benefit most are the banks and creditors because they seldom affect the balance principal. Instead, only the accrued interest is affected.

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% 15 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.49% - 25.49% (Variable)

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

Excellent, Good Credit

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

Ongoing APR on Balance Transfer: Variable APR of 14.99% - 24.99% will apply after the Introductory Period

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

Intro APR on Balance Transfer: 0% 18 months on Balance Transfers*

Ongoing APR on Balance Transfer: 15.99% - 25.99% (Variable)

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

Excellent, Good Credit

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