What are the benefits of applying for interest free... - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » What are the benefits of applying for interest free balance transfer cards?

What are the benefits of applying for interest free balance transfer cards?

Answered on | Updated on May 30th, 2011
The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

Balance transfers are a blessing for people who having high credit card debts spread over multiple credit cards. With the interest rates differing on each card, customers end up paying through their nose to clear off the dues on all of them. Most often than not, paying the dues each month on all these cards become so difficult that most customers default regularly on one card or the other, thereby tarnishing their credit history further. The best way to overcome all these woes and ensure you clear off the existing balances at the earliest is by looking out for the best balance transfer credit card deals being offered by credit card lenders and applying for them. There are a number of benefits of applying for these credit cards.

The interest free balance transfer credit cards allow consumers to collate all their outstanding balances and bring them under a single umbrella. This helps you establish better control over your finances and pulls a plug on the high interest rates you have been paying. Most of the lenders today are offering extended interest free periods, thereby allowing consumers to clear off their dues without having to pay any interest on it. While the Citi Group offers 0% interest on balance transfers for 21 months on a couple of its credit cards, there are a few other banks that offer an 18 month interest free duration. This can help you save a significant amount of money and manage your finances better.

The interest free balance transfer cards help in improving your credit score. When you have large dues on multiple credit cards, it is bound to impact your credit history and your credit score. This, in turn, can have other repercussions on your finances since availing loans and mortgages becomes difficult with a poor credit history. When you opt for the right balance transfer card, you transfer all the dues on to just one card, thereby taking the first step towards better finances. Paying off your dues regularly on this card will reflect well on your credit history which will show good improvement within just a year.

Most of the interest free balance transfer credit cards offer 0% APR not just on balance transfers, but also on purchases made using the card. This implies customers can pay for their purchases using the card and repay it without incurring any interest charges during the promotional period.

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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