The content is accurate at the time of publication and is subject to change.
Credit card issuers and companies encourage their cardholders and clients to make use of the balance transfer service that they offer. This is because the service would not only give cardholders benefits to enjoy but it would also give the issuers more earnings and interest. This article would give you some of the basic information about the credit card balance transfer service so you would know how to use it to your advantage.
There are three things that influence cardholders to make use of the credit card balance transfer service. These are the low or 0% teaser rate and its grace period that takes as long as about a few months, the new credit card`s normal interest rate, and the balance transfer fees needed to be paid for using the service.
The credit card balance transfer service could give you the chance to make use and take advantage of a special feature it has, it is a trick in which you use the new account to lower the interest rate of your credit card debts. It is also the main attraction for issuers to lure in customers to using the credit card balance transfer service. This could be done by using your old credit card accounts from your old issuer, in which you have owe a debt to that company and have interest, and the new one from your new issuer that allows you a 0% interest rate for the next few months. All you have to do is transfer the debts from your old account into your new one, and the interest rate of your debt would turn to 0%.
But keep in mind that this trick could only be done within the first few months after getting your new account. It could also be done repeatedly, in which you could transfer your debts from one credit card account into another and lower your debt interest rates for all its worth. But you should also be warned that this credit card hopping strategy has some varying limits, and so be sure to check carefully if you could still use it without getting into any financial trouble.
Another thing you need to be made aware about is that this credit card balance transfer service is not meant for regular spenders and spendthrifts. This is because even if the cardholder would make purchases while the low or 0% interest rate is still in effect, they would still have to end up paying the card issuers after that grace period is over. And you have to be warned that oftentimes your new credit card issuer`s interest rates would be higher than that of your old ones. So this service is meant for people who are more serious in paying their debts and other financial issues.
You are also advised to thoroughly and carefully check the balance transfer service contract, most especially the fine print passages. This is so you would not miss any important information and you would still be informed about the requirements and rules of the service.