Balance Transfer Credit CardsAn information on the things you should know about balance transfer
Getting out of debt can seem too hard especially if you have racked up huge liabilities with a credit card company that charges high interest rates and fees. Balance transfer credit cards are readily available for anyone who wishes to transfer the balances to a company with lower interest rates. GoBear has an innovative comparison tool for you to compare all credit card offers including fees, charges, requirements, and interest rates. Now, you don’t have to cry over accumulated fees and principal debt amount. All you need to do is check the provider whose offers suit your needs and financial capability.
How does 0 balance transfer work?
The 0% balance transfer refers to the opportunity to transfer all you balance from one credit to another without having to pay any interest. This is usually offered within a promotional period. W which runs to a minimum of six months. Credit card holders with huge balances benefit from this feature because they are freed from paying interest for six months and more, depending on the promo duration set by the bank. During this period, it is also advisable for you to reduce the balance while interest rates are on halt. This will help you accommodate the payment required when the interest resumes at the end of the promo.
What do I need to know about balance transfer credit cards?
Transferring debts from one card to another is definitely a great debt consolidation strategy that will ease your financial woes. However, there are a few things you should keep in mind:
You can transfer loans and other forms of debts, not just credit card balances. The bank which will accommodate the transfer can issue checks for you consolidate all other liabilities.
Transferring does not mean being free from debt. The real essence of the scheme is to repay the old provider and other lenders while creating a new credit account with the new lender. It does not totally free you from the debt but it allows you the breathing space to repay your debts through lower interest rates, convenient payment schedules and 0% balance transfers.
You can always transfer again to another credit card but this will be reflected badly in your credit score. It will be harder for you to borrow money because lenders will consider you a high-risk borrower with unsettled high debt levels.
Not all credit card holders are eligible for credit card balance transfers at zero percent interest. Banks have their screening schemes and it all still depends on your credit history and eligibility if you will qualify for such deal.
You should not make purchases with a credit card you have made a balance transfer to, as you’ll just add to your debt. Some credit card companies may charge a fee and it depends on the size of the transfer and may also vary depending on the length of the introductory period.
By keeping tabs on the things you should know about balance transfer, you will be able to learn and manage your credits better. You should keep in mind that a balance transfer is good if you do it once, but doing a repeat transfer is a huge no-no. If you want to avoid sinking from your credit debt, always pay off your debt sooner and be credit-debt free!
Get out of debt fast with balance transfer credit cards. Compare credit cards with GoBear and start your journey to a debt-free life.