What Is A Balance Transfer Credit Card?

a credit card balance transfer involves moving the credit card debt accumulated on a high interest card to a card with a lower preferably zero interest rate placing the debt to a low interest card will help focus paying the principal towards the remaining debt instead of focusing on paying the interest rate the most recent credit card report shows that the average national credit card interest rate is about sixteen point seventy three percent thus making the credit card balance transfer a smart move transferring financial information between credit cards may seem in opportune with no essential benefits but on further analysis you may notice the true advantages of transferring your balance this operation refers to moving the entire or a part of your debit balance or debt from one credit card to another one people who opt for transferring balance will look for cards with a small to zero interest rate preferably with a 0% interest rate for a couple of years a transfer can be a great way to save some money by eliminating high interest rate debt furthermore there are some other benefits like keeping better track of your balance and consolidating your debt it is useful to note that you can transfer an amount up to the new credit cards limit for example if the new credit card has a $7,000 limit and your debt is higher you want to be able to transfer more than that maximum which varies per card and per applicant what are the benefits of a balance transfer credit card balance transfer credit cards have specific features that will help their card holders save money repay debt and maintain a good credit score it is also important to remember that most credit cards require a good to excellent credit score to be eligible low APR since balance transfer cards are used to pay off credit debt many credit card companies offer multiple incentives for applicants one of the most common incentives is a low interest rate on purchases and balance transfers the credit card companies hope that those offers will make you sign up and establish a long lasting partnership with them the best credit cards offer 0% or very low APR 2 new members for an introductory period typically 6 to 8 months or longer a low balance transfer APR can help you catch up on your existing debt by maintaining the some of your payments instead of making your debt higher every month better credit tracking a balance transfer credit card can also improve your credit tracking why deal with multiple lines of credit when you can consolidate your payments into one account you won't have to deal with multiple payment due dates as you will only have a single payment per month balance transfer offers may be available on existing credit card accounts with promotional APRs which also apply for a defined time period contact your credit card company for more details how to complete a balance transfer the first thing to do to complete a balance transfer is to find the right credit card for your needs these types of cards have promotional offers with very low interest rates credit card companies provide various offers each one with a different annual percentage rate timeframes for the introductory APR and balance transfer fees if you are looking for a solid investment you should spend some time analyzing the card offers look for advantages and disadvantages for example a balance transfer credit card may have low or zero percent APR but may charge a high balance transfer fee or the introductory APR may only be offered for a short period of time after you compared offers you can contact the credit card issuer and ask for a balance transfer you will have to inform who you want to pay the account numbers and how much you want to transfer once your balance transfer is approved the credit card company will contact your creditors on your behalf and pay them two amount you indicated keep in mind that this is a lengthy process which may take up to a few weeks before making a balance transfer there are two things to keep in mind make all payments by their due dates in order to avoid late fees penalties inform that the people and companies about your credit card transfer and pay the balance transfer fees credit card balance transfers may charge a balance transfer fee which is usually 3/2 percent of transferred debt which balance transfer credit cards are the best the American Express everyday credit card this is a cost effective balance transfer card that also provides great rewards the card offers an introductory $0 balance transfer fee for transfers requested in the first 60 days from opening that account the annual fee is $0 and you get an introductory APR the zero percent on purchases and balance transfers for 15 months after this period the APR will be between fourteen point forty nine percent and twenty five point forty nine percent if you still use the card after the transfer period you will be eligible for membership reward points without an annual fee the us

bank visa platinum credit card this is the most sought-after credit card for people with excellent credit looking for a long 0% APR period for both purchases and balance transfers you have 20 months to pay down these balances interest-free after that the interest rate goes up to eleven point forty nine percent to twenty three point forty nine percent the lack of rewards can also be considered a con like most credit cards it doesn't allow same issuer transfers it also requires excellent credit score to be eligible in conclusion a balance transfer credit card is used for transferring credit card debt it has a low interest rate preferably 0% for a predetermined time period the main purpose of a balance transfer is to save money by moving to a low-interest card a balance transfer fee ranging from three to five percent of the amount you plan to transfer will also be applied upon making the transfer for more great advice check the links in the description