Ads
What is a balance transfer?
When you transfer your balances from your current credit cards, whether in part or whole, into a single credit card account, the process is known as balance transfer. It makes sense when a card holder consolidates all his high-interest credit card loans into a new card offering a low rate of interest. The card holder then has to pay only one monthly payment to the new card.
The facility of balance transfer is mostly offered for a fixed period during which you are able to pay off all your balances. Some cards may offer this service for as long as one takes to pay off the balance but it isn’t very common. On expiry of the fixed period regular APR becomes applicable. The details of the APR can be found in the terms and conditions of the card.
A majority of cards charge a fee for the facility of balance transfers, unless it is a promotional offer with no charges. Usually the fee is about 3% of the amount being transferred. However the fee is insignificant when compared to the interest savings resulting from the balance transfer. Credit card info.com reports:
Balance Transfer is a process of transferring all or part of the balances from existing card(s) to a single credit card account. This lets a cardholder consolidate all his/her existing high-interest credit card loans into one card that offers a Low Fixed Rate, and then make one monthly payment to a single issuer. The most common (and attractive) Intro Rate is 0% APR.
--
Did you enjoy this post?
Comments
Post a comment
« Credit Card Balance Transfers | Main | All about balance transfer »
Syndicate
Comments