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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.