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Research: Balance Transfers - Effective Planning to Successful Transfers - Credit-Land.com

Balance transfer is yet another scheme worked out for those who are struggling to make their credit card payments. If you have landed yourself in a struggle owing to your exorbitant spending with your credit card, then balance transfer is one option you can consider to get out of situation at the earliest.

Again, there are some points to be kept in mind if you condition should improve after a balance transfer.

Point 1: Choose the Best

Almost all credit card companies are now encouraging the use of balance transfers. They are hunting for customers as eagerly as you are trying to find the right company for the transfer. As a result, there is competition among the credit card companies and hence there are many offers to the prospective customers. Take time to find out about the best offers before you decide on requesting for a balance transfer. Think in terms of convenience for both transfer and repayment of the amount while making your decision.

Point 2: Introductory Offers are not Permanent

You can avoid the high interest rates for a month or two depending on the introductory offers you get for the balance transfers, but remember that this is valid only for a limited period and sooner or later, you have to make arrangements for repayment of the amount to the credit card company. Do not decide only based on the introductory offer, also consider the rate of interest that has to be borne by you after that period which is much more important.

Point 3: Check the Impact on Your Credit Scores

The whole reason you are thinking about balance transfers is to ease your financial situation, but if you are transferring too huge an amount, it may reflect adversely on your credit scores. This may wipe off the whole purpose of the transfer, so take time to work out the best way out of the situation.

Point 4: Handle the Old Credit Card Wisely

Yes, you have applied for the balance transfer but ensure that the process has gone through successfully and the same is reflected with the credit reports of your old credit card. Any negligence in this front can add to the financial burden and cause a lot of stress for you. Best thing would be to browse through the credit report of the old credit card and ensure that all changes are reflected clearly and there is no further scope for confusion.

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.