Credit Card Balance Transfer

About Credit Card Balance TransferCredit Card Balance Transfer

There are many credit card offers in the market today. Every credit card offer is designed to facilitate a person’s expenditure with its many features, bonuses, and discounts. Some of the offers include cash-back, rewards, Low-interest offers, zero-interest offers, automobile cards, dining cards, and grocery cards.

All these cards help with your everyday transactions as long as you’re able to maintain a balanced debt amount that is a balance limit that you’ll be able to repay.

When things get out of the hand in the sense that you accumulate a debt amount that seems staggeringly large, and not everyone can avoid this pitfall, the best option in the card market is the credit card balance transfer. The offer in the transfer is simple. A credit company offers to transfer your balance in the current card to a new plastic under a new brand and a better offer.

The Benefit of Credit Card Balance Transfer

When one speaks of the credit card balance transfers, to be a better offer, the betterment is in the interest rate. The interest rate on the card to which the balance is being transferred is always slashed down to a very low rate, or as is in most cases a zero interest rate.

The zero interest rate and the low-interest rate when compared might project the former to be the obvious choice, owing to a complete nullification of interest and thus repayment of the mere balance being transferred. However, this is not exactly the case. In choosing to go in for balance transfers with a zero interest rate offer, one has to pay a transaction fee.

The transaction fee for Credit Card Balance Transfer

A transaction fee refers to an amount of money being charged for the transfer of your balance from one card to another. The transaction fee is a percentage of the balance transfers amount being transferred. This fee defines the make or break of your balance transfers in a manner.

When the balance being transferred is quite a large sum, then you need to pay a substantial amount of money as the transaction fee. However, once you’ve paid you can enjoy a zero-interest period for a certain amount of time, which in most cases will suffice for your being able to repay the debt.

On the other hand, you can choose to skip the transaction fee and pay a small amount of interest on your credit card balance transfer. The choice should be made by considering two factors. Whether the one-time payment of a transaction fee makes more sense to your financial plan or the payment of a low interest.


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