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.
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.
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.
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.
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.