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Manage Your Credit Card Debts With Balance Transfer Credit Cards

Manage your credit card debts with balance transfer credit cards

The perks of using a credit card are that you have funds at your disposal whenever you want, you can build up your credit score, and take advantages of cash back and other rewards. In spite of these benefits, credit cards may lead to an accumulation of debts if you do not pay the balances before the due date. You can manage the debt or debit balance accumulated on your credit card by transferring the debt of one card to another card. These cards into which your debts are transferred are called balance transfer credit cards; no-fee balance transfer cards are one of the popular ways to save money.

Manage Your Credit Card Debts With Balance Transfer Credit Cards
You do not have to pay additional fees when you transfer balances from your credit cards to balance transfer credit cards with no fee. When you transfer your credit balances from a high-interest credit card to a one with lower interest rate, your debt comes down considerably. Also, you can slow down the repayment period as the due date gets extended with the new card.

Here are a few basic things you need to know before applying for a balance transfer credit card.

How to apply for balance transfer credit cards with no fee?

  • Create a shortlist of balance transfer credit cards with no fee.
Select the card that is most suitable to your requirements. Select one that has good promotional offers and low interest rate.
  • Apply for the selected credit card through online application form or by calling the customer care of the bank from which you want a balance transfer credit card.
  • Get the account information of the credit card from which you want to transfer your credit. This account is called “transfer from” account. Also, decide the exact amount you want to transfer to the balance transfer credit card.
  • Once you receive your new card, call customer service of the bank from which you have received your new balance transfer card. After you provide your credit card number and state the amount you want to transfer, the customer representative will complete the balance transfer once all the security checks are done.
  • Some banks also allow online balance transfer. You will be eligible for online transfer only when you apply for online banking on your new card.

    • Who should use balance transfer credit cards?

    • If you have racked up a high debt on your current credit card due to high monthly interest payments
    • If your credit score is in good shape
    • If you want to save money by paying lower interest rates and low intro APR
    • If you want to avail of promotional benefits of a new credit card when they are not available on your current credit card. However, signup bonuses are not available with balance transfer cards with no fees.

    What are the factors to consider while looking for balance transfer credit cards with no fee?

    • Compare the introductory interest rates.
    • Check the Annual Percentage Rate (APR) that is applicable after the intro rate expires.
    • Check the minimum monthly payment that you would have to make.
    • Read the fine print to know whether there is any limit on the balance transfer amount.

    Which are the popular balance transfer credit cards?

    • Chase Slate
    • Citi Simplicity card
    • Citi Diamond Preferred card
    • Discover it card
    • Capital One Platinum Prestige card
    • U.S. Bank Visa Platinum Card
    • U.S. Bank Perks + Visa Signature Card

    What are the risks of using balance transfer credit cards?

    • Be wary of APR that may be applicable after the promotional offer expires.
    • The rewards offered to you can tempt you to spend more with the new credit card, thereby adding to your pre-existing debt.
    • If you close your old credit account after the balance transfer, your credit score may plummet.
    • There might be additional fees involved in balance transfer credits cards; no fee during credit transfer does not mean that there is no late payment fee or annual fee. Read the fine print carefully.
    Disclaimer:
    The information available on this website is a compilation of research, available data, expert advice, and statistics. However, the information in the articles may vary depending on what specific individuals or financial institutions will have to offer. The information on the website may not remain relevant due to changing financial scenarios; and so, we would like to inform readers that we are not accountable for varying opinions or inaccuracies. The ideas and suggestions covered on the website are solely those of the website teams, and it is recommended that advice from a financial professional be considered before making any decisions.
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