A simple guide to understanding balance transfers better

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » A simple guide to understanding balance transfers better

A simple guide to understanding balance transfers better


Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.
When you have a credit card, it is quite often easy to get carried away in your spending spree. However, it is not necessary that you always know what you are getting into with a credit card as it can spin horribly out of your control if you are not careful. Everyone likes to have money to spend and sometimes, things careen out of control. It is important to know how it works and then to sort out things. Most people keep hearing about balance transfers and the deals offered by the credit card companies make it seem like the best thing ever. If you have wondered about having an interest free credit card and being able to pay off just what you owe, then that is what you can get if you pick the right balance transfer deal.  However, you need to make sure that you are spending enough time on researching and understanding the terms before deciding to opt for it. If you do not consider what you should about balance transfer offers, you will simply end up with an even more expensive card and too many bills to deal with. There are many things that make a balance transfer attractive, but the ultimate deal is when they offer 0 interest transfers. What you should check before grabbing it is how long the zero interest is for. Often it will specify in the fine print that an offer is for a limited period only. This means that you cannot hope to have a zero interest rate forever on your new card. It will expire at a point and you will have to clear all your payments before that period runs out. In addition many a time, people end up losing money because they do not check if the transfer part is complete and the due date on the old card is still not pending. This makes them defaulters and soon their credit score hits a low. Another important factor to consider is annual percentage rate or APR.  As much as the rates offered as an introductory deal look hard to resist, the APR would be rather disappointing. It becomes important to consider all the details present in the fine print at the bottom of the deal. If you read through it, you will find that things aren’t as rosy as they look.  Often much of the information is difficult to understand, make sure you discuss it clearly until you know what it entails. An additional consideration is with regard to the transfer fees. The issuers tend to charge a transaction fee depending on the amount you wish to transfer. So the bigger the amount you are looking to switch onto a new card, the higher the fee you will need to pay. This can be quite unpleasant and if you are not careful can lead to serious problems eventually. Do make sure you know all the details of the transaction before opting for a seemingly enticing balance transfer deal.

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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!