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6 Important Things About Credit Card Balance Transfers

by First State Bank And Trust Make the Switch to Better Banking!

The 0% initial interest rate on balance transfers is a common feature of many credit cards targeted at customers with good to excellent credit. This offer looks great on the surface, but people who take advantage of it might find themselves on the chorus for unexpected interest charges. There are many banks in Stillwater from where you can take help to know about credit card balance transfers.

Many people are trying to lessen their credit card debt and turn to credit card balance transfers to reach their goals. But while such transfers can be helpful judiciously, they have possible traps. 

Important Things About Credit Card Balance Transfers

Before you accept any new credit card deal, think about these 10 problems.

1. You could save money

The primary benefit of a credit card balance transfer is that it gives you the chance to save big bucks. Balance transfers featuring zero percent offers are incredibly nice. Still, even a low-rate balance transfer can save you money if your existing credit card interest rates are average or high.

2. You could get out of debt faster

If you are chipping away at credit card debt, you are likely paying for the benefit of having that plastic in your wallet and the amenity of carrying a balance over time. But, unfortunately, that amenity comes at a price. The interest you are getting charged is the bank’s manner of making a profit off you, month after month, year after year.

Transferring one or more existing credit card balances to a zero percent interest rate card can help you quickly repay your creditors. That’s because your entire monthly payment will go toward the principal, not the interest, helping you become debt-free faster.

3. Not everyone qualifies

The drawback of balance transfers is that not all will qualify for these deals. Moreover, banks in Stillwater and credit card issuers usually approve balance transfers only for people with good credit ratings. So unless your FICO score is in the 700 range or more reasonable, you might have a more challenging time taking benefit of a balance transfer.

4. You can get extra credit card bonuses

One benefit of a credit card balance transfer is that you can apply for a credit card that rewards your spending or offers you bonuses for shopping that you were going to do anyway.

For instance, travel cards, airline cards, and rewards cards often offer cash-back awards, hotel discounts, or free flights. If you have a plain-vanilla credit card with no bonuses, finding a balance transfer deal that also gives bonuses is worth considering.

5. The “deal” is only temporary

Credit card issuers know they can attract new customers by tempting them with zero percent interest deals for some time. While a zero percent offer sounds good, realize it won’t last forever. So make sure to rely on the Stillwater bank and trust. Moreover,  examine it carefully before making your decision.

6. You can streamline your finances

Another selling point of a balance transfer is that they provide a way to streamline and simplify your finances. For example, combining or consolidating your debts onto one card may be more accessible than making multiple payments to several credit card companies.

These are the important things about credit card balance transfers that will help you. If you find a bank in Stillwater that is offering a credit card balance transfer facility at a low-interest rate, you should consider shifting to that new lender to reduce the burden of your credit card debt.

Blog Source: https://bayportbanks.wordpress.com/2022/08/17/6-important-things-about-credit-card-balance-transfers/


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About First State Bank And Trust Freshman   Make the Switch to Better Banking!

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Joined APSense since, June 29th, 2017, From Bayport, United States.

Created on Aug 29th 2022 06:08. Viewed 273 times.

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