How to Do a Balance Transfer
The object of a balance transfer offer is to help you save money on the amount of interest charges you pay and give you an opportunity to reduce your credit card debt more quickly.
If you’re unsure how to do a balance transfer, there are some things you should consider before you proceed.
Choosing the Right Balance Transfer Deal
Before you submit an application for your balance transfer credit card, take some time to look at the available offers. You’ll find that there are various different promotional interest rates available as well as different introductory periods to choose from.
Most people will immediately aim for the lowest interest rate they can find as they’ll obviously be paying far less interest. If you’ve chosen a 0% balance transfer card, be sure you know how long this rate will last. When it does expire, you should also know what the standard purchase rate will be, as this is the rate you’ll be charged on your balance after the 0% rate has expired.
If you have a larger debt to repay, you might want to consider a deal with a longer introductory period, such as 12 months or even a life-of-balance offer. This can allow you to repay the debt in your own time, yet still enjoy the low rates available.
Transferring Your Balance
Different banks will have different criteria for how to do a balance transfer, but you should find that it’s a very simple process. Be aware that the introductory period begins on the same day as your card is approved. This means you’ll want to transfer your balance over to the new card as soon as possible to access the low rate sooner and not miss any days.
Using Your Balance Transfer Card
Once your card is open and you’ve seen how easy it is how to do a balance transfer, you should remember that your card should be left only for debt reduction purposes. Don’t be tempted to use it to pay for purchases or to withdraw cash or you could be losing all the benefits you thought you were getting from your 0% interest rate.
Related posts:
- How Does the Balance Transfer Process Work?
- Defining Balance Transfer Credit Cards
- Understanding The Balance Transfer Process And Making It Work For You
Posted on Thursday, January 13th, 2011 at 3:14 pm
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