What a credit card balance transfer is
Different credit card companies offer credit cards with different interest rates on both introductory and regular rates. Some of them may be as low as o- percent. Credit card balance transfer allows qualified consumers with higher introductory credit card rates to move their credit card balances to accounts with a lower introductory APR rates. Such card holders are able to enjoy low interest rates for the period of the introduction duration after which their APR rates may be alleviated to normal rates. Consumers are able to pay off debts on other credit cards as interest rates are totally eliminated. Credit card balance transfer is one of the strategies applied by credit card companies as a means to lure more clients as well as allowing existing customers to consolidate their credit debts in a single card for easier management of their finances. Consumers enjoy great and better rates after effecting credit balance transfers. After the introductory period is over, credit companies may raise their interest rates thus profiting from the large consumer base they have attracted.
How to apply for the best credit card balance transfer
Applications for Credit card balance transfer can be done online which allows instant approval of the request if qualified. However, actual transfer of funds between the different credit companies may take a significant amount of time ranging from several days to weeks. The negative aspect of this is that this interim period still accumulates interest on the credit debt which will still need to be catered for. It’s always advisable to check your first credit bill after the transfer process is over and pay off the accumulated interest rates before closing the account. Credit card balance transfer rates are always relative to current credit scores which determine the level of credit interest rates applicable on your account. Interest rates offers range from zero rated credit cards to cards with low interest offers. All this is determined by your credit history and other factors such as your current debt ratio and your revolving credit cards in operation. Online credit card balance transfer is simply the best and easiest way to implement your transfer. However, the only setback to this process is that the mail process takes relatively more time which implies that the higher rates are still counting on during this process that will have to be settled.
How to become debt free
Since the low rates take a relatively short period between six months and one year after which they expire, it’s essential to take advantage of this period and pay as much debt as you can afford within this limited span of time. This can make you debt free such that when higher rates are introduced, you have little or no debt left to settle.
Considerations for credit balance transfer
Different credit card companies consider a number of factors to determine the type of offer to be applied on a prospective customer upon transferring his credit. Credit card balance transfer must not exceed the credit line being offered by the creditor as the excess balance will still be left holding in the previous account. Others issues such as credit history are still considered. All in all, credit card balance transfer is still a viable strategy of getting rid of bad debts and should be done now and then when the low introductory rates offers expire.