Balance transfer is a good way to move your one credit card loan to another card with the aim of saving money and time. The advantage of credit card balance transfers from one credit card to another is saving on interest charges. Some credit cards offer no or very low APR during its introductory period and by purchasing such credit cards you can avail this offer for a limited period.
Some cards require no interest charges if you pay full balance on time every month. But sometimes you owe a lot of debt on various credit cards and suddenly you have no budget left to pay back all loans. The solution is to buy a new credit card and transfer your balance on it. But balance transfer is not a magic because you will still have to pay back loan of balance transfer.
Search carefully that transferring balance to another credit card will give you some benefit or burden you with more debt.
You should evaluate your debt situation. Decide how much debt you want to transfer on credit card, one or multiple credit loans. How much time have you planned to get debt free? Calculate interest rates of all debts and compare with new credit card which will help you in choosing the best card.
Many credit cards offer tempting terms, so focus on them for your financial needs. Keep an eye on their promotional offers of interest free longer duration.
Check your credit score regularly and keep it high. Some credit cards need excellent credit score and if you do not meet their expectations then your application will not be approved, or you may get limited credit balance.
Read carefully all the terms and conditions offered by the credit card union and calculate how much cost will have to pay on transferring the balance and how much you will be saving in terms of interest to see what you will gain in the end.
It is better to purchase a new credit card for balance transfer which you can apply for online. The credit card company will require your older credit accounts and balance transfer limit. If it took some days for approval of balance transfer, pay your older credit loan as usual until you get the conformation of transfer. Or you will add late payment fees to your debt.
Try to utilize the interest free period as much as you can and plan to pay off your debt faster on regular basis. If you will get limited balance transfer, do not forget the remaining cards and pay minimum payments on them.
You can use balance transfer credit card for any type of loan, like student loan, installment loan, personal loan or auto loan. But you cannot purchase balance transfer credit card from the same card issuer because the credit card issuers do not want you to take advantage of them. You will be returning their loans by getting more loan from them.
If you have decided to transfer balance on a new card, look hard and find the reason of your debt crisis. Figure out the reason and try your best to prevent it from happening in future.