Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers.
Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer.
The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings.
When you decide for a balance transfer it doesn't mean that your obligation for payments towards your outstanding balances with the existing credit card company cease to exist. You will have to pay the credit card company all the monthly payments. One way you can save money is to just send the monthly minimum payments to the existing credit card company. This way you
won't default and invite penalty.
The next step is to sign up with the credit card which you sought for transferring your balances, and fill up the balance transfer application.
When you receive a balance transfer offer from the new credit card company, it's time to verify the offer and call your old credit card company about the balance transfer. Get the statements of billing from the old credit card company and ensure that your outstanding balances are $0.
After transferring your balances, it's time to close the old credit card. Call up the old credit card company and get it closed. Get the information about this closure in writing. Ask the old credit card company to inform all the major credit
bureaus about the closure of the credit card.
Now, your balances are transferred to the new credit card and you can enjoy the benefits of low apr on your outstanding balances. If transferring balances, becomes a regular habit than it is definitely a thing to worry about as this brings in a false sense of security, while the credit card debt piles up and you are constantly reported by credit card company as such to the major credit bureaus. Balance transfer is there to reduce the immediate debt repayment burden and it should be used as such and frequent timely payments should be made to get rid of that credit card debt.