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Balance Transfer credit cards

A balance transfer credit card is the best solution for people who need to effectively manage their debts and pay them off quickly. A balance transfer credit card helps you save big on your hefty credit card interest. These cards aim at reducing your credit card balance by transferring the money that you owe to your balance transfer credit card.

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How to make the best use of Balance Transfer credit cards

by Cardswallet Team
Posted on March 7, 2018

A balance transfer credit card is the best solution to effectively manage their debts and pay them off quickly. A balance transfer credit card helps you save big on your hefty credit card interest. These cards aim at reducing your credit card balance by transferring the money that you owe to your balance transfer credit card. There are different types of credit cards and a balance transfer card helps get rid of your debt swiftly. It waives off the interest temporarily so that you pay only the balance that you owe without the added interest. This is a great solution for people who need some time to pay a large amount of debt. Whether you’re opting for a premier credit card or any other types of credit cards, it is important to know if it offers you balance transfer benefits or not.

All balance transfer cards are different, therefore should be compared before picking the most reliable one. The best balance transfer credit card allows an entire year for paying the balance before the interest rate kicks in. Moreover, balance transfer cards do not charge any additional fee apart from the remaining balance for a full year. You can also take a look at credit cards for fair credit and other cashback cards.

Let us take a closer look at what is a balance transfer credit card, how do they work, and more.

How do these cards work?

  • To know what is a balance transfer credit card and how it works, use a credit card calculator to get the total number of months. This helps to determine the amount you can pay each month. It is also important to compare different types of credit cards to know the credit card balance offers, interest rates, and more.
  • Next, it is essential to assess the duration of which you may be able to completely pay off your debt. You must further select a card taking the balance transfer fees and annual fee into consideration.
  • It is also essential to know and fully understand the requirements that can help keep the offer active.
  • Once you are done with all the preliminary calculations, ensure you check your credit score before applying.
  • A candidate with a reliable credit score may get eligible for a balance transfer credit card by the card issuer. Once accepted, you will need to call the issuer to transfer the balance and furnish him with all the crucial information he is seeking.
  • In case you have been issued the balance transfer card, you must ensure to pay on time to prevent the agreement and offer from being revoked.

What is the best way to use a balance transfer credit card?
Now that you know what is a balance transfer credit card, let’s take a closer look at what is the best way to use these cards.

  1. The balance transfer credit card is of great value if you know how to use it correctly. The first step to make the most of the balance transfer cards is to choose the right offer period.
  2. Thinking through the duration of the pay off period can help you get to the best card at the right offer period. You may also want to look for a card with a no balance transfer fee.
  3. It is also important that you decide the way you wish to use the card once the offer is over. Looking at annual fee and rewards is a good idea post full payment of the debt.
  4. The best way to use a balance transfer credit card is paying off your monthly dues on time. This helps in making the most of the interest-free offer to pay down the entire sum.

Who should opt for a balance transfer credit card?

  1. People paying a high-interest rate can consider this card to lessen the load and saving on big additional fee.
  2. People who have trouble repaying their balance in full can give the balance transfer credit card a try.
  3. Who can bank on the interest-free offer and repay the debt in full before the expiry of the offer can consider getting the bank transfer card as soon as possible.

Merits of a balance transfer credit card

  • It offers 0% APR for a limited time period.
  • Such a card can help reduce the utilization ratio.
  • The balance transfer credit card helps you complete the transaction over your phone.
  • Most balance transfer cards have a no balance transfer fee.
  • Some balance credit cards may offer exciting rewards.

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