Points to remember about Balance Transfers

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 » Points to remember about Balance Transfers

Points to remember about Balance Transfers

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

When you have unsettled debts to take care of, any solution will prove to be of some help. One such solution offered by the credit card companies, is the balance transfer scheme. It is a scheme that has many benefits like 0% interest rates for as long as a year, and attractive reward schemes. If you have not heard of balance transfers, then going forward with the process can be a bit challenging. Understanding balance transfers is easy, if you do it one step at a time. If you have more than one credit card that has outstanding credit, then you have to start by selecting the one with the highest interest rate.

Before choosing new credit card for the balance transfer, make sure of the following things:

  • It is not enough to have a 0% percent interest for the introductory period. Whatever new purchases you make will not have low interest rates applied.
  • All your payment will go towards clearing your outstanding balance and so all your new purchases will be kept pending, and therefore will accumulate interest rates.
  • Choose from many options instead of picking the first card that comes your way. Keep the option of negotiating with your old bank open too.
  • Check for other incentives like award schemes too. You will need them when you start using the card after clearing your debts.

There is one important factor before you zero down on a card. See whether the card has any charges or fee for the balance transfer process. Credit card companies charge some amount of fee for the process, which can be a huge amount to pay. There will be a fixed amount or a percentage of the amount being transferred. Try your best to locate a card that is free of any kind of charges including the initial transfer fee. Some cards claim to give an interest free period for as long as a year, but will have hidden charges attached so that they make up for the loss. Reading fine print, though a bit of an exercise, is very important, if you want to make a good deal out of the balance transfer.

After you collect all your options, and compare them side by side, go in for the actual process. You will have to undergo some amount of paperwork in order to start paying for the new credit card. Read through your offer and make sure you understand the terms completely before you sign up.

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!