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Balance Transfer
The facility of balance transfer that credit cards offer may sound like a good deal but there are certain clarifications you should seek. Ask about how long the introductory rate lasts. Find out the annual percentage rate on expiry of the teaser rate and whether the teaser rate is valid for transferred balances, new purchases or both. Ask about the annual fee, late fees and overlimit fees. Sometimes there may even be balance transfer fees
Some cards may offer waiver fees for initial balance transfers only, which refers to the transfers that you specify at the time of signing up for the card. The rest of the balance transfers is charged at the rate of cash advance fees.
Remember that getting an offer does not necessarily mean qualifying for the super low rate. Some cards withdraw the low rate facility in case of even a single default, following which the rates could shoot up to as much as 11 percent. Falling behind on payments on another card could result in the new card raising the rates.
It may be advisable to continue with the minmum payment on your old card before the balance transfer is activated as it could take upto four weeks. You will be notified when the balance transfer is complete. Even then, check with the old card company to confirm. It may be better to wait until you receive a billing statement from the previous company that shows zero balance. Request for it if they don't send it to you. Credit card info.com reports:
How do I transfer a balance?
Before you transfer that hefty credit card balance to a card with a super-low introductory rate, read the fine print and ask questions. Otherwise, you could end up paying fees and a much higher interest rate than you expected.
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