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Research: Primer for balance transfers -

Credit card fees have reached an all time high, these days. Currently there is no sign of it decreasing very soon. In times like this, you need to think smart. The following articles are a primer on balance transfers and will give you a head start into deciding what to do about your heavy outstanding balance. The first step to take when you have a number of credit cards with an outstanding balance is to go for a balance transfer credit card with a low rate of interest. Before you go for this however, you need to go through the terms and conditions with a keen interest.

You can either get a balance transfer card from a new company or you can approach your existing bank for a balance transfer credit card. Usually, your existing card company will give you a much better deal than a new one.

Now we arrive at the question of what a balance transfer credit card is all about. A balance transfer card can cut down your expenditure significantly. If you have a number of cards with an outstanding balance, you will have to pay more every month on the repayment installments. But if you have one single outstanding balance, you can get a much better deal in terms of the amount of money that you have to pay every month. Balance transfer cards will offer a zero percent interest rate on the outstanding balance for a period of a year to even two years.

There could also be many other additional offers with the balance transfer card. The card might not charge an annual fee, but this is highly unlikely. You might get cash back on certain purchases based on the rewards program associated with the card.

You need to go through the applications before you get the card. You may also write the balance transfer on the convenience check that the issuer will give you. This will perform like a conventional check but there are some things to take into consideration like expiry date. Also the quantum of the amount that you can transfer will depend on the credit limit of the card.

There will also be a fee to transfer the amount from the old card onto the new card. This fee can be either a percentage fee or a lump some fee depending on the bank from which you get the card. It is better not to transfer smaller balances while you do a balance transfer. This is because you will not gain much as the fee will take away most of the benefit.

There are some things that you need to be aware of before going ahead with the balance transfer. The late fee is something that you need to consider. When the introductory period ends, you will have to start paying the interest rate on the remaining outstanding balance.

Also remember that every time you charge the card beyond the limit, you will be charged a penalty. The charge could be a lump some of around $20 or even a percentage charge of around five percent on the exceeded amount above the credit limit. Keep in mind these things when you apply for a balance transfer and you can laugh your way to the banks.