The content is accurate at the time of publication and is subject to change.
A lot of us are guilty about opening several new credit cards while we still have large outstanding credit on our old ones but not that bad when you are planning of getting a credit card balance transfer. It actually is very easy to do it, as long as you have your social security number and an active mailbox then you`re good to go.
Credit card business is one of the biggest industries nowadays. With the interests and fees that cardholders pay, this sure makes a big fortune for credit card companies. Sixteen percent is the average annual percentage rate on the majority of credit cards. With an interest as high as sixteen percent, it would not be too easy paying off for the credit card due to the charges that is consistently being added. This is one seen reason why companies came up with balance transfers.
Offering a balance transfer credit card is a way for credit card companies to attract consumers to get a card from them. This is how balance transfer works: your old credit card balance is transferred to you new card thus you now owe to your new company. Once the balance transfer had been completed, the card holder is given a grace period to pay the dues with a lower interest charge. Zero to two percent interest applies and can last up to six months to a year after making the balance transfer.
In most cases, this method could be very advantageous to the card holder for he is left with a balance with a lower interest. This strategy can allow a person to apply for another card when the old balance transfer has expired. Just remember to close the old account when opening a balance transfer card.
Opting for a balance transfer sure is a good thing on the consumer`s part but this would mean you have to be more diligent. More often than not, there are some hidden charges that applies so better have all the fees and interests be clear to you to avoid regret and conflict in the end. Also don`t forget to check on the annual or joining fee that you have to pay for. It might be way higher than the average fee, ask the back why this is so and if you are not comfortable with the fees and rates then there could still be some other banks that you can have the balance transfer with.
