It is no secret that credit cards have become a staple in American society
. As a matter of fact studies show that the average American has at least 1 credit card in their wallet. This high demand for credit cards has lead to more and more banks providing more and more options. The overwhelming competition in the industry has lead banks into offering balance transfer credit cards. But, what are they and what benefits do they provide?
Balance transfer credit cards work just like any other credit card account for the most part. They are small rectangular pieces of plastic with information contained on a magnetized strip on the back of the card. Consumers can still utilize balance transfer credit cards for purchases and cash advances as well. The major difference in balance transfer credit cards is what they are named for, the ability they give consumers to transfer balances from a higher interest rate credit card to the new low APR balance transfer credit card account.
Upon the arrival of the first balance transfer credit cards, the success was obvious. Consumers were looking for more and more balance transfer options. But what are the benefits that the ability to transfer balances from one credit card to another provide?
The major benefit to balance transfer credit card accounts is the debt relief they provide to a great deal of Americans. As the banks fall into tougher situations, APRs charged to people continue to rise. This rise in interest rates has lead a great deal of consumers into financial hardship situations. This is because as APRs rise, so do monthly minimum payments. The people who have found themselves in this situation find the most benefit from balance transfer credit card accounts because they aid in the reduction of the APRs on the people debts.
Another great benefit to balance transfer credit card accounts is the promotional APRs that they usually provide. Because of the overwhelming competition now in the balance transfer credit card account market, banks had to come up with something that would give consumers even more. The answer quickly became promotional interest rates. Introductory interest rates are low annual percentage rates some times as low as 0% that last from the date of opening the account to the end of the promotional period. Introductory periods these days can range from 6 to 18 months with most balance transfer credit card accounts.
Finally, as with several other types of credit card accounts, many balance transfer credit card account products offer exceptional rewards programs. Rewards programs can range from miles (people can earn travel rewards like airfare and hotel accommodations) to cash back (Americans earn cash back points with every purchase) and everything in between!
by: SEO Daddy-O
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2024-12-4 15:33
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