This is a very serious matter when you plan to balance transfer credit cards. Is your previous credit card debt enforcing you to transfer your credit card. This is not a simple process in practice. So many considerations require minute evaluations. Here are seven suggestions which would help you to know about balance transfer credit cards.
- Interest of rate on the debt
The interest of rate is one of the crucial points for selecting a credit card, when you find your previous selection wrong for choosing credit cards. Supposedly you are paying thirteen percent rate of interest on the present credit card. If you transfer your credit card to zero percent this would help you to deduct huge amount of your debt. This is a smart idea to plan a new credit card for settling down old debt. But this would work once only. Once you get a credit card with zero percent interest this cannot help you further.
- Make your financial transactions easier
When you possess several credit cards and find it very difficult to manage so many cards month end payment with huge rate of interest. You have to suffer from penalties and late fees. This a better alternative to transfer all the cards with huge rate of interest into one with no rate of interest. This would make your financial life smoother and better. You don’t have to bother of handling so many transactions when you choose an economical and easiest method for making financial transactions easier.
- Helpful for other types of debts too
The balance transfer credit cards would help you to get rid of multiple debts. Car loans, home loans and several other categories of loan for what you are paying a very high rate of interest can be transferred to another card with zero interest. You can use the checks of the bank which you have adopted for zero interest of rate.
- Balance transfer fee
This is not much easier as there as an inevitable fee which you have to pay depends upon the total balance you are planning to transfer. This is known as balance transfer fee. This keeps on increasing with the increasing amount for transferable amount. The recent balance transfer fee has been declared three percent. You should compare the fees with the amount you are going to save out of a zero rate of interest.
- Increasing balance transfer rate
The situation becomes more complicated when the balance transfer rate keeps on increasing after a shorter span of time. The increased balance transfer rate fails to consolidate your idea to escape from the previous higher rate of interest.
- The limitation of balance transfer card
This is not so simple to use a balance transfer card. In some cards there are obligations that you cannot transfer your balance unless you could meet the requirements of balance transfer fees.
- Sound credit capacity
You should have sound credit capacity to avail the balance transfer card. The recession period has made the strict eligibilities for the balance transfer card. The financial institute only allows you the usage if you have sound credit capacity.
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