Briefly; it means to transfer one or more of your high interest credit card balances to a different credit cards with a more favorable interest rate. This method will help you to pay your debts more quickly. Credit card balance transfer do not delete your debt. You simply transfer to a different bank and continue to pay with lower interest rates. This saves you a significant amount of savings. Thus, it converts your multiple payments into a single payment, making it easier for you and keeping more money in your pocket.
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Which debts can i transfer?
You can transfer not only your credit card debt, but also all your credits. You can transfer all your monthly payments such as home loan, car loan. In general, a minimum charge of 3% is charged for this operation. So, if you make a $ 10,000 Credit card balance transfer, you’ll have to pay a $ 300 transaction fee. This rate may vary between banks. It is very difficult to find a bank that does this for free. To make this calculation, determine the amount to be transferred and the rate of transfer fees that the bank offers.
Long term Credit card balance transfer
Banks generally determine between 15 months and 32 months in this process. You pay your balance in monthly installments during this period. If you wish to pay in the longer term, you should discuss this request with your bank. These are the standard maturity periods. The amount of the transfer and the number of deposits you have chosen will also affect interest rates. In addition, the transaction fee is determined accordingly. You cannot transfer debt from the same bank. You must apply to different banks. In fact, the purpose of banks for Credit card balance transfer is to win new customers.
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