Balance transfers to work towards better financial management


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Balance transfers to work towards better financial management

Balance transfers to work towards better financial management

The content is accurate at the time of publication and is subject to change.
It is not uncommon for people to hear a whole lot of new terms in the credit card world. It pays however to know what most of them are to avert any financial problems. One important factor that you should know about as a credit card user is balance transfers. Understanding the offer completely and researching on the available options is essential before deciding on which balance transfer option to opt for. You will find that you can make a lot of difference to the outstanding dues you have to pay on your credit card by choosing the right options in balance transfers. Balance transfers are not complicated; they simply involve transferring the outstanding amount on your credit card to another one which has no interest rates. Why this is useful is quite simple. It is aimed at allowing people to pay off the debts they owe without incurring the interest charges that keep adding to the existing debts. It is important to understand that the credit limit on the new card should also be considered prior to doing this balance transfer process. The balance transfer amount also cannot be over the top. You cannot transfer more than 80 percent of the credit limit to the new card or it will tend to reflect poorly on your credit scores. Make sure that you understand how a balance transfer works and also the time period over which the transfer is done. Most people assume that balance transfers have already happened and stopping paying their dues on the old card. Make sure you know the amount has been transferred before you decide to ignore your old card. Keeping the account linked to the old card open is also a good idea, particularly if you have had it for many years. When doing a transfer also clarify the interest rates on the new card. In addition make sure that the card offers you the lowered interest rates or no interest rates for a reasonable time frame. It should be enough for you to close the outstanding amount without incurring additional charges. Many people get so carried away at the thought of a balance transfer that they neglect the important details like the charges that are applicable. There is always a balance transfer fee that may be levied. Sometimes there are cards which are offered free, wherein no balance transfer fee is there. Check if you can be eligible for a card like that. In addition also check that there are no hidden fees which may be required later on. Sometimes there are low interest rates and low fees offered as a promotional package for balance transfers. Once you sign on and make a purchase then the rates of interest applied to the new purchase are very different. It can be quite an expensive deal. Make sure you know exactly what you are opting for, right from the beginning. Understanding every detail will make it easier for you to do the balance transfer without any problems and allow you to close your debts.

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!