The Good and bad Side of Balance Transfer


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 » The Good and bad Side of Balance Transfer

The Good and bad Side of Balance Transfer

The content is accurate at the time of publication and is subject to change.
It has gotten easier and faster to secure a credit card nowadays but when our old credit cards are facing too high credit debt, some of us think that applying for a new card is a good thing to do. This kind of move to save more money does make sense with a balance transfer. It is very easy to apply for a balance transfer for the basic things you needed are just mailbox and your social security numbers. One of the biggest industries today is the credit card business. Sixteen percent is the usual annual rate for credit cards and with that kind of interest; it is obviously very hard to pay off credit card debts. The principal balance rises in time with accumulated unpaid charges. Credit card companies are aware of this so they made it easier for consumers to manage their credit card debts with balance transfer. One of the most effective tactics used by most companies to attract consumers with their credit card is to offer them balanced transfer for free. Your existing balance from your old card will be transferred to your new one and a grace period is given to you to repay the balance with the new company. Balance transfer rate usually play around one, two and even 0%. More often than not, such rates last for six to twelve months after the transfer is made. For most consumers, balance transfer is the best way to reduce their debts on credit cards. This kind of debt reduction strategy gives a person the chance to apply for a new credit card which offers balance transfer after the old expires. The transfer from the old to the new account will give one a lower finance charge. When you are considering of opting for balance transfer then make it a point to close any or all of your existing accounts. Balance transfer sure is a very beneficial thing but discipline is pretty much needed. Check the fine print meticulously; you may find yourself paying for too much hidden charges. There are some banks that charge for the balance transfer which could sometimes amount to a certain percentage of the balance that had been transferred. Go for banks that do not charge consumers high joining and annual fee. Very good things usually come with drawbacks. Most companies offer a 0% introductory rate but if you don`t get that careful then you will just realize that you are paying more that you are supposed to. In most cases, companies offering 0% have very high rates on purchases. Another drawback is that some banks collect a transfer fee which could tend to be very high if you don`t do a check. While there are companies who charges penalty fee, there are those which don`t. But then again don`t be blinded with this for the original 0% offered to you maybe changed to a higher interest rate. To avoid more disadvantages and regret, make it a rule of the thumb to keep know everything about balance transfer; both the advantage and disadvantages before using them.

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!