How to Benefit From a Balance Transfer Credit Cards

by : G. L. Scurry

If you are under the pressure of high interest and mounting balance of your credit card, Balance Transfer Cards could be the way out. You only have a procure a credit card that offers the balance transfer option at 0% interest and transfer the balance to the new credit card. With the help of this 0% card you pay the high interest credit card debt. In case the debt remains on expiry of period offered in the deal, you only have to repeat it.

Also it is easy to take benefit of this system by transferring the money to your saving account and earning interest until the 0% interest period exhausts. You have to pay back the money on time.

While choosing Balance Transfer Cards the period and transfer fee are the aspects you have to take into consideration, as the interest is 0% for all cards. In case a card offers a period of more than 12months to clear your debts there could be an annual fee as well. This balance transfer deal is generally for a period from 6 to 12 months, but you should always search for longer period deals. If you spent some time online, you may find just the right kind of offer you require.

Once the Balance Transfer Card idea was introduced by the card issuers and it started becoming popular, it was easy to take undue advantage of the system by way of credit card surfing. This is switching from one 0% credit card to another just before the period expired, and thereby saving on interests for prolonged periods. In order to stop incurring loss on account of the interest free credit offered for such long term to such credit card surfers, the transfer fee was introduced which is generally about 3% of the balance.

There could be a maximum transfer fee in case of some credit cards, and if your balance is of a large amount the deal is still profitable. You can also find cards that do not charge you a fee for the introductory offer.

If you have opted for the average daily balance system you may find that the balance are lower than in case of average balance over 2 cycles, and if you are desperately trying to overcome your debts the former is the better alternative.

You may also find cards that offer you 0% Balance Transfer for life. There is bound to be some catch in such proposals, and generally you will need to use the cards a certain number of times every month and the 0% is covered by the minimum payment.

Once you decide to bank on Balance Transfer Cards you may pay attention to the small print of the form to avoid loopholes. As there are chances of your overlooking certain aspects that may affect you later, you may gather all the required information like maximum limit of transfer fee, period etc. before selecting the credit card.

Balance Transfer Cards are programmed to rescue you from the credit card debts, by transferring the balance with a high interest to a 0% credit card so as to tide over.