If you have outstanding debts to any credit card, you can transfer this debt balance to a different credit card. Balance transfer credit card, offers you reward points, travel miles and more convenient payment terms. Many banks offer this opportunity to their customers and provide them with appropriate opportunities. They usually initiate a promotion process between 6 and 21 months and ensure that their customers benefit from this campaign. the offers offered by the banks can be very attractive.
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How to do a Credit Card Balance Transfer?
Firstly; Before you can make Balance transfer credit card, you must learn the interest rates and analyze the benefits that the benefits will bring to you. First, list the debt balances and interest rates of all your credit cards. Then, choose a credit card that gives you higher limits and more appropriate rates, transfer the balance to this card. The selected credit card does not have to be on your behalf. You can also transfer credit card balance on behalf of your spouse. Calculate all costs, including the balance transfer fee.
This fee is usually between 3% and 5%. You may need to do some math calculation at this stage. Remember to calculate additional costs. Otherwise, there is no point in transferring credit card balance. In doing so, you must also calculate possible penalty payments. After the balance transfer, you may have to pay 30% penalty interest if you fall in discretion.
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Balance Transfers to Existing Cards
You do not need to open a new account for Balance transfer credit card. You can also do this with your existing credit card. You can even pay even lower interest rates. But if you have more debt on the card you transfer, it might be a little more difficult to transfer it.
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