What is a Credit Card Balance Transfer?
Opening a new credit card may seem like the last smart thing to do when faced with mounting credit card debt. In one case, however, this may make sense and wind up saving you a lot of money as well. This special exception is a credit card balance transfer, and is oftentimes available to anyone with a mailbox and social security number. Credit cards are a big business today, with many companies making a fortune off finance charges. The average annual percentage rate is about 16% on most credit cards. With that kind of interest, it’s tough to pay down a credit card, because it is consistently charging interest and adding to the principle. Even hot stocks are pressed to grow at 16% a year. Luckily, companies are so anxious for your business the balance transfer was invented. In an effort to lure consumers to their credit card, many companies offer free balance transfers from your old credit card. Once the money is safely owed to the new company, they will often provide a grace period wher
A credit card balance transfer simply means moving your debt from one card to another. It’s often a good way to save money, as many credit card companies offer an interest free period on balance transfers to new customers. You can consolidate your debts by transferring the balance from more than one card or you might be able to find a new credit card with a lower interest rate.
A credit card balance transfer is where you already have a credit card and apply for a new one, and then transfer your current credit card balance to the new one. The new credit card issuer basically pays off your balance with the other company and then bills you accordingly. Often credit card offers such as introductory 0% APRs for a certain period of time are available when you apply for a credit card.
