Business & Finance Credit

Free Balance Transfer Explained

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!
SHARE
RELATED POSTS on "Business & Finance"
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Credit Repair Service - Is it For You?
Credit Repair Service - Is it For You?
The FTC Provides Resources To Help Consumers Get Out Of Debt
The FTC Provides Resources To Help Consumers Get Out Of Debt
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
Fix Your Credit Report Errors
Fix Your Credit Report Errors
Credit Cards with Zero Interest
Credit Cards with Zero Interest
How Business Credit Can Help in Growth of Your Business
How Business Credit Can Help in Growth of Your Business
The Mystery of Credit Card
The Mystery of Credit Card
A Bond Co-Signer's Rights
A Bond Co-Signer's Rights
Canceling Credit Cards and Credit Scores
Canceling Credit Cards and Credit Scores
Most Common Credit Repair Myths Debunked
Most Common Credit Repair Myths Debunked
Credit Counseling - Not Because You're Crazy, Either
Credit Counseling - Not Because You're Crazy, Either
Credit Cards For Poor Credit
Credit Cards For Poor Credit
Credit Card Approval - Some Simple Hints
Credit Card Approval - Some Simple Hints
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Instant Approval Credit Cards And Why They Are Highly Beneficial
Instant Approval Credit Cards And Why They Are Highly Beneficial
Credit Card Debt Relief and FICO Scores
Credit Card Debt Relief and FICO Scores
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
3 Credit Mistakes That Can Ruin Your Credit Fast
3 Credit Mistakes That Can Ruin Your Credit Fast
How to Get a 740 Credit Score
How to Get a 740 Credit Score
Your Credit Report and Credit Score Explained
Your Credit Report and Credit Score Explained
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt

Leave Your Reply

*