The general shift of money or funds from one account to another is called as Balance Transfer. It generally involves the balance in an account either whole or as a part that is to be transferred to another account. More often than not companies try to gain new credit card customers by helping to make transfers easy. The transfer of balance also involves the payment of transaction costs often which most of the times is paid by the customer requesting a transfer. Generally credit card holders opt for a balance transfer especially when they possess a surged credit card debt. Some other places a balance is transferred are bank checking accounts, trading accounts and bank checking accounts.
To apply for a balance transfer, a credit card holder generally needs only a mailbox and a social security number. Companies are more than happy to provide transfer of the credit amount to a new account with them. A free balance transfer from an old credit card is what consumers can expect from a number of companies, provided they take a new credit card.
This introductory rate typically lasts for a grace period of six months post the shift in the amount. Consumers who usually have a large credit to their credit card can employ this method to lower the debt on the card. The consumers` worries are kept to a minimum with this method as they have the opportunity to make the balance payment on their credit card without being hassled a lot about the applied interest rates. If consumers stay upfront about the balance transfer of their credit amount, they can actually see the method working in their favour. What consumers need to pay attention to is the fine print regarding the balance transfer that could include hidden charges. They must also ensure that their earlier account having the increased credit amount has been closed after they transfer the amount to a new account or credit card.
Consumers may also want to check the amount charged by a company for transaction and it shouldn`t be large in comparison to the credit amount being transferred. The bank involved must also not be charging the consumer an augmented joining or annual fee. With this technique consumers actually gain the ability to start a new account with their credit card balance transferred. It can be seen as a good option when the consumers` old accounts expire or are on the verge of expiring. If the credit amount has increased highly, consumers can conveniently have all their balance transferred to the new card which not only gives them a grace period but also makes handling the finance slightly more easy with the comparatively low charge.