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If you have a bad credit and wish to lower your interest rates and debts then it is best to do a balance transfer. Sometimes we yield to credit cards and end up with huge debts that accumulate. However, one must not give up hope under such situations as there are ways and means to lower your debts in spite of having bad credit. The easiest ways to lower the total debt is by obtaining a 'bad credit card balance transfer'. Doing a balance transfer is one way to ensure that all the credit card debts are transferred onto a credit card account that is much easier to manage. These offers are generally made by credit card companies in an attempt to get new clients even though they might have bad credit or arrears to pay off.
Although doing a bad credit card balance transfer is fairly simple one must be cautious and follow a few simple tips before making the call. Always read the terms and conditions before doing the balance transfer. There are plenty of good deals that one could benefit from but there may be hidden charges and fees that may actually increase your debt instead of decreasing it. So look for some of these things listed below before doing a balance transfer:
• The low introductory interest rates should not increase later.
• There should be low or no transfer fees.
• There should be low monthly fees as well as annual fees.
• There should be low or no application fees.
• There must be low deposits for the secured accounts.
In case your credit is less than perfect you might be charged a fee by the credit card companies but the fee must not exceed $25 to $75. If they get higher, then look for a deal that is better as there are plenty of better deals available.
There are a number of companies that offer balance transfers and each company has their own criteria as to which bad credit card accounts, they can accept. They will look into the factors that led to the bad credit situation such as a sudden job loss or prolonged hospitalization or huge medical bills, etc. If this bit of information is included in the credit card report, this might actually help in obtaining a bad credit card balance transfer even more easily.
People generally opt for a balance transfer in order to maintain a single account, which in turn would be easier to manage. Sometimes individuals might either close the account or simply refrain from using the card, so they won’t get tempted to use their cards again and get into a bigger mess. Balance transfers are usually done from a high-interest credit card to a low-interest credit card. This helps save a lot of money in the long term. This way the debt is paid back faster, especially if the payments are a little higher than the minimum due.