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Getting a balance transfer card can be your only solace at times when you do not have any other avenue to earn income to pay off your huge credit card debt. Getting into debt is not a good thing, but if you have arrived at this point it is too late to fret about it. Instead you need to find ways to sort out the problem and applying for a balance transfer credit card is one of the most effective and independent ways of solving this crisis.
So how does a balance transfer credit card actually work A balance transfer card is essentially a zero percent interest rate credit card. The zero percent interest rate is offered as an introductory incentive and will stop being, in effect, after the end of the period. This period is usually six months to two years in duration. You will have to pay a certain transfer charge to have the outstanding debt transfer to the new credit card. You will also have to pay an annual fee since it is a zero percent rate credit card.
Applying for a balance transfer credit card is like applying for any other credit card. You will first have to find a bank that is offering a zero percent rate credit card. You can search for such banks on the internet, or you can approach your savings bank for such an account. Almost all banks offer these cards now-a-days as a marketing ploy to attract new customers. Now we shall discuss a few things that you need to look out for when you search for balance transfer credit cards.
When you look for banks that offer such cards, make sure that you get the longest introductory zero percent period as possible. This will give you more time to sort out your affairs without having to worry about how you are going to come up with the cash. Citibank offers a card with an introductory period of almost two years, 22 months to be precise. Seek banks that offer a low transfer fee and annual fee.
The next step is to fill out an application. Obviously, it is difficult to get a credit card with a bad credit history. However, you need to make your case by discussing your situation with your bank. You could help your case by showing fixed assets like a home or other assets like stock options, bullion options, or art work. When you apply for a card, your credit score will get affected. If the application is rejected, you will suffer even more due to the bad mark on your credit record. Try ensuring that the application will be accepted for sure by talking to the manager before hand and convincing him about your credit worthiness. Most banks that offer such cards understand your predicament and would be willing to help. After all you are going to be a new customer for them, and they would be happy to accept you into the fray.