This article explains how people can find out more about balance transfer credit card offers, which are becoming more popular in the market right now.
Only two out of every three people who use credit cards pay off their balances every month, which means they pay more than they should (and could). If you're one of them, don't worry; you can easily transfer your balance and save with a credit card. If you just made a big purchase but can't make your payment on time, use a balance transfer credit card. You could save a lot of money by moving your balance to another balance transfer credit card with a very low or even 0% APR on balance transfers.
Sounds strange? In no way! Here's what you can do. You fill out an application for a new balance transfer credit card, where you list your other credit card accounts and the amount you want to move from the old account to the new one. Your balance moves from one account to another, and your interest costs drop. Most of the time, you'll have up to a year to pay off this balance with 0% (or very low) interest.
Some other "traditional" credit cards will even offer a low interest rate on the balance until it is paid off. If you aren't sure if you can pay off the whole balance in the time you were given with no interest, this may seem like a better choice. But using balance transfer credit cards is never a risk if you plan for them well in advance. This will help you save a lot more money!
If you have balances on more than one credit card, a balance transfer credit card could be a big help. Balance transfer credit cards let you move all of your credit card debt to one account and pay no interest for the first few months. But before you jump, here are some things you should know.
- Your payment amount should end up being less.
Balance transfers would let you lower your interest costs by a lot, so you could pay off your debt slowly over the period with no interest by making monthly payments.
- A balance transfer does not mean debt elimination...
Balance transfer credit cards are NEVER the answer to all your prayers; they are NOT a way to get out of paying debts. If you can't pay off your whole balance during the introductory period, you may have to pay interest on the whole amount of the consolidation, which would be a lot more.
Make sure you read the card's rules before you apply for it. Also, some customers think that their new credit cards (or their old cards that they just paid off) are free money, so they keep spending on them. This means that they end up with the same amount of debt as when they started, plus the balance on their new balance transfer credit cards. Yikes!
- Move when the time is right
If you transfer a balance from a card right before the finance charge is calculated for that month, you will save almost a month's worth of interest costs. If you transfer the balance before the interest and finance charges are added to your bill, you shouldn't have to pay those costs.
- Spending less is good; spending too much is bad.
If you go over your credit limit, some credit card companies will charge you a lot of money in over limit fees. A balance transfer can give you some wiggle room if you need to pay for something unexpected. You can avoid these fees by moving large balances to new accounts.
- How do balance transfers on credit cards really work?
Putting a charge on one credit card account is the same as putting a charge on another. The difference is that the debt obligation moves from one credit card issuer to another instead of from your credit card to a store. When one credit card is used, the other one gets money put on it. Make sure you look into your options so you know how to transfer the balance on the cards you use. You might want to talk to your current creditors to find out if there are any rules about balance transfers on their cards. Companies sometimes make this process hard to understand, so make sure you know exactly how the process works for each balance transfer offer.
As long as you use balance transfers the right way, they can be a great way to handle your money when times are tough.
