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Banks are always looking for business one way or another. Credit cards are the biggest market for customers and many times people get stuck with a large outstanding balance and look to find a way to only pay the amount owed without interest rates adding on every month. This is when the balance transfer offers appeal the most to people. There are numerous banks which allow people to transfer their outstanding amount to a new card at times with no charges. The prospect of a lowered interest rate or even no interest rate is too irresistible for many consumers.

When considering balance transfers on your credit card, it is always smart to know what is in store for you. Sometimes, it is seen that a deal is not exactly what it looks like, it tends to be more expensive than you have anticipated. If you spend some time considering what the balance transfer offer is all about, you will be able to be better prepared for what is ahead with your new card. Understand that a balance transfer is generally an offer with an introductory period that lasts for a short time. Most people overlook this fact and then end up paying more than before once the lowered rates bounce back.

When you consider doing a balance transfer, make sure to check the credit limit that will be available to you. Depending on the amount you are transferring onto the new card, your credit limit will also reduce. Now we know well that a lowered credit limit is not the ideal thing for a poor credit score. Make sure you consider the impact of your every decision with a credit card. The transfer amount cannot be more than 80 percent of the available credit limit in nearly every case.

Understand the process involved. A balance transfer is not something that is done in no time at all and leaves you free of all the debts you have.  The entire process can take you around 7-10 days or more. In the meantime if there is a due date pending on your old card, you cannot afford to miss the payment. It will be taken as a black mark on your credit history. Make sure that you know what is being done and that you are not behind in any of the payments that are owed on the card. When you transfer a credit card balance, keep the main aim of doing it in mind.

Think over the reason why you do the balance transfer. Is it to reduce the payments on your card or are you looking at reduced interest rates? If it is interest rates that you want, you may need to double check if the lowered rates of interest are applicable to the new purchases made on the same card. If you do not plan things carefully you can end up losing a lot of money in the process and with larger bills than before. Ensure that you know everything you should know about a balance transfer deal.