InsightsFrenzy.com | Discover Insightful Content

Things you should know about balance transfer cards

Balance transfer cards allow you to transfer and consolidate your debts to a card which charges a no or low rate of interest on the amount due. However, there are a number of things to be considered while availing a fee 0% balance transfer card.

Credit score: Your credit score reflects your ability to repay loans taken within the stipulated period. The financial institution will check your credit score and credit report to determine whether you can be issued a fee 0% balance transfer credit card.

Things you should know about balance transfer cards

Balance transfer credit cards allow you to transfer debt from one of your credit cards which might charge a higher rate of interest to one that has a low or minimal rate of interest to restructure your debt and provide relief on the payments. Usually, a fee is charged for this particular service. However, fee 0% balance transfer credit cards waive off this charge which is also given to people with excellent credit history rating and score.

0% fee is temporary: Usually, fee 0% balance transfer credit cards are issued for a promotional period which might last from 6 to 21 months depending on the financial institution. The balance also has to be paid off within the intro period for which the APR holds its 0% validity.

Terms and conditions: It is not that easy to avail a fee 0% balance transfer credit card since you may qualify for the same, but getting an approval might take time. The credit limit will also affect your chances of availing this card since a lower credit limit will not serve your purpose if you have significant debts that need to be transferred. In such cases, it is not advisable to opt for a fee 0% balance transfer card since you will just end up paying for your balance existing debt and the debt on your new balance transfer card.

Intra bank card transfer not possible: Balance transfer is possible only if you are applying for a card that is not issued by your existing banking partner. Most financial institutions will not allow a balance transfer within their cards for debt to be consolidated.

Pay the full amount and not the minimum due: When it comes to a fee 0% balance transfer credit card, most people will be just tempted to pay off the minimum due rather than the total amount due, just because it is convenient. This is however not a good idea since the low rate or no rate of interest will allow you to make more payments and clear off your debt instead of stalling and taking advantage of the minimum due.

Disclaimer:

The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.

Popular Articles

Things you should know about balance transfer credit cards

Balance transfer in simple terms can be explained as the process wherein you transfer debt incurred on one credit or any other credit and that you own, in order to consolidate and make payments more effectively.

What you should know about balance transfer cards

Things you need to know about balance transfer credit cards

According to the Federal Reserve, around 43% of people in the country end up spending more than they earn and use their credit cards to finance the shortfall. Piled up credit card debt is a financial burden and does not seem to get off your back easily.

Best balance transfer card that you should own

A balance transfer is mostly the transfer of balance which can be either money or credit from one account to another, often held in another institution. The term is commonly used when describing a credit card balance transfer.

Manage Your Credit Card Debts With Balance Transfer Credit Cards

Manage your credit card debts with balance transfer credit cards The perks of using a credit card are that you have funds at your disposal whenever you want, you can build up your credit score, and take advantages of cash back and other rewards.

How Does A Balance Transfer Credit Card Help You Pay Off Debt

If you are down with a huge credit card debt, you can choose to apply for a low-interest balance transfer card, which will help you pay off the debt. The first advantage of the card is that you have your entire debt in one account.