Advantages of transferring credit card balances

You may have just returned from a long vacation and now have an even bigger credit card debt. Transferring credit card balances has many advantages, but it is not without negative implications as well. Here are a few ways that transferring credit card balances is a good idea.

When you transfer the balance from one credit to another, the only real reason to do it is if the second credit card offers you a lower rate of interest. You can save on all that potential interest money, which you otherwise would have paid the credit card #1 – only if you manage to pay back all that debt over time. If you do not do that, then interest on credit card #2 can quickly add up.

If you have multiple cards and have lost track of each of their due dates and billing dates, then transferring all the balances to one card will simplify your financial life.

Apart from balances from other credit cards, there are credit cards that allow the option of transferring other loans from the bank, such as your car loan or a personal loan.

Transfer fees will always apply, and there is no cap on the fees. Therefore, the more you transfer, the greater will be the fees. It only makes sense to transfer if the total interest accrued would exceed the total transfer fees. Calculate everything before you transfer the balance.

To sum up, you can avail yourself of the advantages of transferring a credit balance only if:

  • Interest rates are zero or low on the new card.
  • Consolidating all your debt into one card will simplify your life.
  • Pay the transferred amount on time to avoid additional interest.
  • Calculate total transfer fees and total interest savings to make a sound decision.

Latest from Our Desk

What is Jerry Goldman’s Oyez Project?

What is Jerry Goldman’s Oyez Project?

The Oyez Project is a multimedia archive created by Jerry Goldman and is devoted to the U.S Supreme Court. It is an unofficial archive containing all kinds of media, especially audios of oral arguments. The project, which is displayed as a website, was supported by the National Science Foundation…

Latest News

What Does the US EPA (Environmental Protection Agency) Do?

What Does the US EPA (Environmental Protection Agency) Do?

US EPA or the United States Environmental Protection Agency is the US federal government body that was formed to protect both the environment and people through formulation and implementation of regulations on the basis of the laws. This agency was formed in December 2, 1970, which was also the day…

What is the Freedom of Information Act?

What is the Freedom of Information Act?

The Freedom of Information Act was established to make governments and public companies accountable by providing the public with the right to access information pertinent to them. It does not allow disclosure of your private information to unauthorized persons or companies. For example, a bank…

World News

Karen Perezas body found by Texas EquuSearch
Earthquakes rock Japan and Ecuador
Government takes over Turkey's largest newspaper