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Are you getting choked off by your huge credit card debts? Have you been struggling to get out of this deep hole? If you have credit available on any one of your cards, then balance transfer might be the most powerful weapon for you to combat the fight. As the name suggests, it is a mode of transferring balance or a part of the balance from one account to another at a comparatively low rate of interest, sometimes as low as 0 APR. There are a number of providers, and you can choose the best one for you from a wide range.
If you have multiple debts, it really becomes hard for you to make monthly repayments for each card. If you wish to get rid of it, you can opt for a balance transfer credit card. It allows you to merge all your credit card balances into a single one, and you get the chance to pay only a single amount each month. Basically, to make the most of this lucrative opportunity, you need to qualify for certain lines of credit. Once you are qualified, you can maximize your savings by the proper use of balance transfer on your credit cards.
The most significant aspect of a balance transfer credit card is its usefulness to move your funds from a higher interest rate credit card onto a new one with a very low interest rate. Sometimes, lenders offer new cards at 0 percent APR. This is only an introductory offer for new applicants, and can be open for three to six months depending on the card lenders. During this period, 0 percent interest rate is applied on any balance transfer. This is the most beneficial plan as it gives you the scope to pay your debts off without paying any interest.
While applying for a new credit card for balance transfer, you must check out if 0 percent interest rate cards are available or not. If you come across a lender offering 0 APR balance transfer credit cards, you should apply for that one. However, you must be aware of the fact that 0 APR cards are advantageous for you only if you are confident enough to repay all your debts within the introductory period. Once that specific time period is over, you will have to pay interest at the regular rates. These rates are often high and with these higher rates, you will end up paying a lump sum amount each month.
Balance transfer credit cards might have some usage charges. These hidden charges will surely take a toll on your balance. Some lenders also apply a balance transfer fee. There are many companies which apply only a one-time fee for a balance transfer, while others charge fees for every transfer. Inquire if there are any such charges before applying for a new card. If used wisely, it can be the best investment for a credit card user. Recent economic downturn has made people more conscious about their credits and savings. In this scenario, a balance transfer credit card would be certainly a helpful one.