These days, consumers are taking advantage of a special process set up by the card companies that allow you to transfer the balance of one credit card to another without paying a fee.
This process is called free balance transfer.
A free balance transfer is the act of transferring your existing credit card debt from one card to another in hopes of paying less interest with the new card.
The balance transfer offers normally are made up of three things.
Offer rate, transaction fee and the length of the offer.
These offers carry three different types of interest rates; purchasing rate, introductory rate and fixed life of loan rate.
Below is an explanation of these terms The Purchase Rate Purchase rate offers allow the balance to be transferred at the same rate as the card's purchase or merchandise rate.
These rates can differ depending on your credit rating.
Introductory Rate The introductory rate is normally a Very low interest rate that is offered for a limited amount of time, normally 6-12 months.
Most times card companies offer zero or 1% interest in this introductory period.
After this intro period expires the rate will rise.
Fixed Life of Loan Rate These are low rate that are fixed until your balance that you are transferring is paid in full.
A catch on these offers is that they are only guaranteed if you make your payments on time.
Missing a payment can immediately revoke your low rate and instigate an interest rate hike.
Many balance transfer cards are subject to some sort of transaction fee.
It varies from 1-5% of the amount of debt you are transferring and should have a maximum cap that can keep you from paying high costs if your balance is large.
Free balance transfers are merely shifting your assets or debt from one account to another without paying a transaction fee.
This can be a great way to keep your payments going towards paying off your debt and not merely paying off your interest.
A great way to get started is to do online research utilizing a credit card website that allows you to compare credit cards side by side so that you can find cards that offer free balance transfers and low introductory interest rates.
And remember if you find multiple cards that offer these features, you can keep transferring your balance after the intro period expires and remain interest free, virtually for life!
This process is called free balance transfer.
A free balance transfer is the act of transferring your existing credit card debt from one card to another in hopes of paying less interest with the new card.
The balance transfer offers normally are made up of three things.
Offer rate, transaction fee and the length of the offer.
These offers carry three different types of interest rates; purchasing rate, introductory rate and fixed life of loan rate.
Below is an explanation of these terms The Purchase Rate Purchase rate offers allow the balance to be transferred at the same rate as the card's purchase or merchandise rate.
These rates can differ depending on your credit rating.
Introductory Rate The introductory rate is normally a Very low interest rate that is offered for a limited amount of time, normally 6-12 months.
Most times card companies offer zero or 1% interest in this introductory period.
After this intro period expires the rate will rise.
Fixed Life of Loan Rate These are low rate that are fixed until your balance that you are transferring is paid in full.
A catch on these offers is that they are only guaranteed if you make your payments on time.
Missing a payment can immediately revoke your low rate and instigate an interest rate hike.
Many balance transfer cards are subject to some sort of transaction fee.
It varies from 1-5% of the amount of debt you are transferring and should have a maximum cap that can keep you from paying high costs if your balance is large.
Free balance transfers are merely shifting your assets or debt from one account to another without paying a transaction fee.
This can be a great way to keep your payments going towards paying off your debt and not merely paying off your interest.
A great way to get started is to do online research utilizing a credit card website that allows you to compare credit cards side by side so that you can find cards that offer free balance transfers and low introductory interest rates.
And remember if you find multiple cards that offer these features, you can keep transferring your balance after the intro period expires and remain interest free, virtually for life!
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