Credit Card Balance Transfers – Basics That You Should Know

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 » Credit Card Balance Transfers – Basics That You Should Know

Credit Card Balance Transfers – Basics That You Should Know

The content is accurate at the time of publication and is subject to change.

One of the best ways to reduce your debt and clear is off fast is by opting for balance transfers on credit cards. However, this is possible only if you choose the right credit card for this purpose. Considering the number of options that are being offered by innumerable financial institutions, the chances of you choosing the right one for you needs is bleak if you don't know the basics about balance transfers. Let us take a look at the information that you should know before you go in for one.

Choosing the right card

The concept of balance transfer will work in your favor only if you get this step right. While opting for a particular card, you should ensure that the interest rate on that card is lesser than that on your current one. There are a number of credit cards that offer a low interest rate only for a short span of time and then revert to the regular APR. Hence, find out for the duration of the promotional interest rate you are being offered. If the bank you are opting for is asking for overhead fees like admin costs and balance transfer costs, then, it is better to avoid such options. There are innumerable institutions that not only eliminate these costs, but also give really low interest rates in order to increase their customer database. Opt for such credit cards.

Impact on your credit score

While balance transfer is indeed a good option to consider, it is not recommended to go in for it often. You should know that this can have a negative impact on your credit score, especially if you opt for the wrong cards. You should be very careful and ensure that you are indeed bringing down your debts and not increasing it, if you don't want it to have adversely influence your credit report.

Complete the balance transfer successfully

Most people think that the process is complete if the balance has been transferred to the new card. They tend to forget that the old card has to be closed if the transfer should be considered complete. Not closing your old card can increase your financial liabilities since you will still have to continue paying annual fees on it. Some companies also charge inactivity fee if the card is not used for a long span of time. Hence, ensure you close your old card before you start paying off the balance on the new one.

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!