subject: Saving Money With a Credit Card Balance Transfer [print this page] Saving Money With a Credit Card Balance Transfer
Generally the credit cards are used to meet various large or continuous expenditures. But if one becomes a little bit more conscious, it will be surprising to note that a good amount of money can be saved through credit card balance transfer scheme.
A credit card balance transfer scheme offers a borrower to transfer all his or her balance of one credit card to another with 0% interest rate for the initial month and with no fees or charges for transferring. It is moving or shifting of one's own debt from one card to another in order to get a lower interest rate from the percentage what currently the card holder is getting. While doing so, many credit card companies offer an interest free option on balance transfer for the new customers. While transferring the balance from more than one card a person can even combine debts.
A study shows that almost one third of the credit cardholders fail to pay off their full credit card balance in each month regularly. In order to grab the best deals on balance transfer one must look for 0% initial interest rate and the amount paid after that should be lower. Hence, money saved.
One of the ways to keep the money where it belongs is to transfer the balance from high annual percentage rate cards to low rate credit cards. This helps in getting rid of credit card debt by transferring the balance from higher rate cards to 0% balance transfer credit cards. This will result in saving a lot on interest while paying the debt.
The credit card holders will be benefited in a big way if they are aware of the fact that balance transfers are available for good reasons and hence should be used as such. Some of the common benefits are no annual fees, longer grace periods and additional rewards and even rebates or points just for transferring the balance to one program.
Balance transfer cards are a great way to reduce the rate. The life of them offers a very low rate of interest on the transferred balance. This rate is offered for the life of transferred balances so that one could be benefited from this low rate until the transferred balances have been fully paid.
The balance transfer credit card is ideal for those who want to save money on their credit card balances, but are unlikely to repay the balance within the interest free periods offered on the credit cards. These allow one to repay the debt at an easier pace. Another advantage of this type of card is that there is normally no transfer fee as there is with most 0% balance transfer cards.
While transferring balance certain points should be kept in mind like the lowest APR or annual percentage rate and lowest balance transfer fees. It is a good practice or habit to search for the credit cards and scan their services to decide which is offering the maximum savings.
Martin Lukac represents RateTakeRefinance Rates marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? GetDebt Help and you'd be surprised what we can do together.
