So you want to reduce the interest amount associated with existing credit card debts, don’t you?
Shop around to find the best balance transfer credit cards based on how long it will take to clear these debts.
Basically, balance transfers are designed to help borrowers save money on their credit card debts and pay them back faster.
It’s necessary to pay attention to their fees and terms before applying and understand that this solution usually requires a good credit score to be approved.
General Rules to Apply
Credit cards that have the longest 0% introductory period usually have higher balance transfer fees (around 3% of the amount that you want to move across).
If you’re sure that you can afford paying back the credit card debts in several months, it’s advisable to pick a card with a shorter period and zero balance transfer fees.
Most people choose between two popular options: the first one with lengthy periods and balance transfer fees and the second one with zero balance transfer fees and shorter periods. It’s only up to you to decide on the best one.
What Credit Card Balance Transfers Are All About
Once you receive lower-rate balance transfer offers from lenders, you may wonder what they are all about. Keep in mind that they can be an effective way to save money in addition to getting extra benefits associated with consolidating debts into one single payment.
For example, if you have a high balance on your credit card, you may be eligible to transfer relevant debts to the other credit card with lower rates, thus, saving some cash on interest rates and paying back these debts faster.
A balance transfer is when people pay off their balances of existing loans and credit card debts by transferring them into other credit card accounts.
Sometimes, they’re charged a specific fee to do that, and it’s a percentage of their transfer balances. You are allowed to transfer only the amount that it up to a credit limit on your new card, and you can’t exceed it.
Best Balance Transfer Credit Cards Top 5:
Barclaycard Platinum 42 Month Balance Transfer Credit Card
Halifax 41 Month Balance Transfer Credit Card
Virgin 41 Month Balance Transfer Credit Card
Tesco Bank Clubcard Credit Card
Bank of Scotland Platinum 40 Month Balance Transfer Credit Card
The Basics of Balance Transfer Process
It involves a few key aspects that will be reviewed below:
- After accepting a particular balance transfer offer, you need to determine an account number, who you need to pay and how much.
- When you get approved for balance transfers, credit card companies contact all of your billers and creditors to pay them the indicated amount. Remember that it may take up to a few weeks to complete this process, but it often takes around seven days.
- If any of your credit card payments are due before that time, you’re required to make them on time to avoid problems associated with late fees.
Everything about Balance Transfer Fees
Even the best balance transfer credit cards can be associated with certain fees, and they range from 2% to 5% of your transferred debts.
Nowadays, it’s possible to find 0% introductory balance transfers without any fees, but they’re available only for a limited period of time.
The greatest benefit associated with their use is that these credit cards allow users to pay off their piled debts faster and avoid further financial complications.
You can save some money on interest rates if you succeed to get low promo rates offered by credit card companies, but you should spend time to shop around and find the best deal.
It’s no wonder credit card balance transfers are so popular these days, and they’re available in different types, so choose the one that suits you perfectly.