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Balance transfer is an effective and recommended method to save more money and lessen credit card costs. Of course, it requires a credit worthy character and it also entails more research work for you.
Remember that credit card companies are competitive and wise. With the high competition taking place in the market, they can also add deception in their game. How? Giving interest rates which are lower than the other credit card companies. Offering more perks than others.
This is why you should take advantage with the situation. If one banks offer a lower rate, get to know that company and the rules attached with the transfers. Once you have perceived and concluded that the company is indeed feasible, go to your current credit card company and state your desire about getting a new credit card account through a balance transfer. After that, enjoy the promotional offer by the new credit card while you are in your promotional duration.
You just have to be careful though. Many companies that offer bank transfers have hidden agenda behind the tempting offers. Yes, they offer a zero percent interest charge for twelve months. That sounds like free money, right? But what happens if you shop a lot within that twelve months and took half or maxed out your credit limit, and the next year, you receive a bill stating that you have accumulated over a thousand dollar interest charge. Would you be surprised? Of course. You have transferred to lower your interest charge and so that you can shop more freely. But now, you are being charged of high interest? That is one of the behind the scenes operation of a credit card company. Some of them actually offer the 0% for twelve months as a trial promotion. Many people bite this agenda, and take the account. Later they will learn that the 0% is applied to the transferred credit amount and not on the purchased items within that year. Other more concerns with the zero or very low rate of interest is that the offer is given only to those with the proper qualifications. Credit companies will check your background and determine if you have the capability to abide with their terms or if you can pay on time. If they find you low risk or very credit worthy, the zero interest promo is yours.
Before going to the credit card companies and request for the transfer, you still have to consider certain points. Balance transfer can hurt your credit score. Note that balance transfers are done by transferring to new accounts with lower interest rates and lower credit limit. If you have just exceeded 30% of your credit limit in your current amount and transfer the balance to a credit card with a lower credit limit, you may be dropping your score. Scores are used by other credit card companies, employees and insurance providers, so take note of this. Another thing to consider: interests and fees. Compute for the future total charges with that of your current companies`. Is the transfer cost effective? Shop around to have an easy comparison. In a few days, you`ll be learning much about teaching job.