Information about Credit Card Balance Transfer you can benefit from


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 » Information about Credit Card Balance Transfer you can benefit from

Information about Credit Card Balance Transfer you can benefit from

The content is accurate at the time of publication and is subject to change.
The credit card balance transfer is a facility offered by credit card companies, providing customers with the option of transferring the amount or credit due to another credit card company offering a lower interest rate. This feature is attractive to the customer because it allows him/ her to repay credit through a company that offers lower interest rates, loyalty points or a combination of incentives. The customer can effectively reduce the amount payable by constantly transferring from one credit card Company to the next, though some companies allow only a fixed number of transfers. On the other hand, it is attractive to the credit card company because it ensures more customers? This scheme is especially beneficial for those who have an outstanding amount payable to a company that has high interest rates. By availing of the credit card balance transfer, customers can reduce the interest on their credit loans, transferring to a company with lower rates. However, this does not mean that there is a reduced need to keep expenditure in check. These transfers usually have low interest rates for a grace period, after which rates are likely to go up. Some people see it fit to keep transferring from one company to the other in order to avail of the low interest rates of the grace period. It is safer to plan payments in advance as on-the-spot- decisions where bank payments are concerned is always risky and may prove more expensive in the long run. Generally, there is an annual percentage rate of 16% on most credit cards. The credit card balance transfer makes it possible to find a 1, 2 or even a zero percentage rate. The scheme allows you a grace period during which you can pay an even lower interest rate on the transferred balance. Utilizing this period, a person could potentially open a new account that offers a balance transfer when the old one expires. Know your free credit balances There are many situations in which a free credit balance will aid you. A person having a credit card must keep a check of what balance is available on the card. If the person has a margin account with, say, a brokerage firm (which gives out a certain amount of credit to customers to invest) then it's important to keep a check on the free credit balance. Similarly, if a person has a home equity account (or credit) knowing the amount or status of free credit is important. Generally speaking, when a person has an account that allows am amount that can be taken out on credit, its safer to know the status of that balance. Most credit card companies charge a transfer fee when you transfer a credit balance. However this amount is hardly anything compared to the amount you will save if you transferred credit to a company offering a considerably lower interest rate. Also, some banks charge customers a joining fee or annual fee. These are the hidden costs that stay tucked out of sight in the fine print of an agreement. Make you double check all the details, before you transfer money.

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:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... 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!