What is credit balance transfers
Credit card is convenient, let’s say comfort rather than convenient It has made lives even more luxurious. But you need to pay when your luxury ends. A credit card is a tool with which you can purchase and pay later. It allows the cardholder to pay for the goods and services. You are allowed to pay monthly for your credit card expenses.
There are different types of credit cards available like shopping card, travel card etc., But there are the times you might exceed the limit of your credit card or might forget to pay your interest. And they are such a headache. Want to minimize your credit card problems? Worried of your credit card woes? Have you ever searched for the ways to reduce your credit card woes? Well, you can try credit card balance transfer services.
What is credit balance transfer?
Credit card balance transfer is the transfer of your balance from the current credit card to the another. This method is implemented by many in order to have a shift to another credit card. It is usually done to gain the benefit of paying low interest and will keep a check to your credit woes. A frequent balance transfer may cause disturbances in your financials.
With a Credit balance transfer, you can transfer your debts to another credit card. This allows you to maintain multiple accounts on a single card. Despite the transfer, you still have to repay your debts but with the lower interest. There is some balance transfer card who offers 0% interest at the introductory stage giving you the time to pay without any interest. This even reduces your outgoings.
Balance transfers are scrutinised and subjected to security checks but these don’t have an impact on your credit card debts. The minimum balance transfer must be about €100 and you can transfer up to 93% of your credit card limit. Once the transfer is done, you aren’t allowed to cancel the process and no returns. There are many ways a credit balance transfer works.
How to do a credit balance transfer?
Here’s how you need to do,
- Before a credit balance transfer, You need to check for these options,
- Eligibility – check whether your account is applicable for the balance transfer.
- Mode of transfer- Check for the modes of transfer as most of the fund transfers are done either by NEFT or Demand draft
- When you choose the credit balance transfer, you will be provided with the options like how you want to pay, the amount you would like to transfer and of course the account numbers
- Once your application for a credit card is approved, the credit card companies will contact your billers and pay the amount you are indicated to pay.
- To complete this process it takes for about two weeks
- The dues are to be paid before the due dates to avoid the late fees
Benefits of credit balance transfer
- It is quick and easy
- Multiple transfers
- Free of interests
- Low balance transfer
- The low annual percentage rate
- Manage multiple accounts on a single card with 0% interest
- Instant transfers
- Save interests
- Lower interest rates
- Payments can be done between 9 to 48 months
- Nil documentation
- Paperless payments
Tips to follow while you transfer your credit balances
1. Always read the terms and conditions
There will always be some important details that you need to follow for a balance transfer like,
- Card Balance transfer fee
- Introductory interest rate
- The time period of interest rate
- The time given to complete the interest payment
- Check introductory options on balance transfers
- The amount you can transfer
2. Mark important rates
Some credit cards may offer 0% interest for only for a certain period of time. There are some banks who renunciate your fee when you complete the transfer within the specified time. In order to keep a track on all these, it is good to mark important dates in the calendar.
3. Plan for paying debts
Create a plan on how you want to pay your balance transfer. If you have a card with an introductory rate make sure to pay it before the introductory period expires. Delay in the introductory payment, You may have to pay the interest on your remaining balances. If you can’t pay all at once plan on how you will pay them down.
4. Do not purchase anything with the new card
If you really want to be quick in paying off your debts, stop purchasing anything from your balance transferred to a credit card. You need to be cautious as cards impose the interest on transfers and where your interests may pile up.
Here are the important points that you need to look while you use a credit balance transfer.
- Availing credit balance transfer may limit the amount in your credit
- Pay all your debts when the introductory interest rates are zero or nominal
- The lower interest rates are not applicable for current purchases. So you should stop making purchases from your balance transferred card
Credit card balance transfers can help you culminate or minimize your interests. To get most out of the balance transfer ensure to read and understand all the terms and conditions of the balance transfer. And if you feel balance transfer is right for you, approach the nearest bank.