Balance Transfer Credit Cards

Balance transfer credit cards are those which allow an individual to move a debt from one account to another. There are many reasons why this will be done.




For example, one card may have a lower interest rate. Transferring the balance of a high interest rate account to one with a lower rate can help to make the debt less expensive and easier to pay. When it comes to using cards specifically for this reason, individual may be hoping to apply to a lending company offering a discounted introductory offer.
 
How do you get this type of account?
 
This implies that an individual is looking for an account that is offering a discounted method of moving the balance of one account to the next. Look for low interest rate, no fee offers that are currently available. This may even include zero percent APR for a limited time. Take note that these are intro offers and therefore they do expire. The applicant also needs to be approved for these accounts, which is not always possible for those with a low credit score.
 
How can these be used wisely?
 
Balance transfer credit cards can serve as a good investment, if they are used wisely. First, if a move takes place, it should be with the goal of paying it off prior to the expiration of the introductory period. This way, it is the most affordable. Also, keep in mind that some companies will charge interest retroactively on any remaining balance. Therefore, transfers should be paid off as soon as possible.
 
Are there fees associated with transfers?
 
The cost of transferring a balance is very dependent on the specific offer applied for. Many accounts will allow an individual to use a cash advance to transfer a balance from one credit card to another one, even if it is not a new line of credit. There are nearly always hefty fees for this. For new cards, there may be no fees associated with it. Reading the fine print is very important. Also, individuals should know what the interest rate on the balance transfer is after the introductory offer. This assures the card is affordable.
 
Balance transfer credit lines are available throughout the web. Borrowers may even get an instant approval for the credit and be well on their way to saving money by paying off one card with a new, lesser expensive one. For those who read the fine print, this type of account can be one of the best investments available.
 
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