Nowadays, there has been an immense growth of credit card usability among individuals. Therefore, more banks and financial institutions are wooing customers with various potential deals, just to win them over. For that, they are offering rewards, cash backs and some of the other deals over here. These forms of credit cards will allow the users to transfer existing debt to a new card with the benefit of zero-interest for a set time frame. Even though interest is associated with some new purchases, but you will have time to work your way out of current debt while not charged any form of interest at all. With any other form of credit card deal, always be sure to pay attention to perks and also drawbacks to determine whether the card is right for you or not.
|Also Read: Things to Know Before Applying for a Small Business Loan|
Catch up with the basics:
These cards are designed to offer one of the best ways to competition between banks to win over valuable businesses. It helps in saving quite some bucks in long run. Banks are currently making it rather easy for people to actually transfer existing credit card balance over to new one, by offering so many forms of incentives. There are some great ways for you to start paying debt down, which is otherwise nagging at credit score. There are so many reasons for you to look at this kind of balance transfer credit cards.
Some of the basic features as expected from this card are:
- No need to pay annual fees
- Travelling based rewards
- Bonus points designed for signing up
- Identity theft and fraud protection at its best
- Cashback options
- Concierge services and more
You might be quite happy with your current credit card. But, it is always important to shop around to actually see the additional benefits you will receive and the amount of interest you can easily save by switching to a card with the lower form of annual rates.
The balance transfer credit cards are quite popular among masses and used by banks to increase the customer-centric base. For that, you don’t have to go through the current application procedure all by yourself. It is also a great way to protect them against any higher percentage of credit risk over here. It will further protect them from the cost of assessing applicant right from scratch.
Well, that does not mean that these kinds of cards will always avoid risk as that isn’t possible. But there is no harm to poach current customers, which the competitors might want to keep. You will definitely enjoy some profits around here and banks are always there to compete for the same.
Why people are relying on balance transfer cards:
Even though it is not recommended to jump from one credit card to another, it is always clever to know if you are getting the most mileage out of the present credit card. Banks are currently offering various perks for those willing to sign up for the current balance transfer cards. Before you get hands on any of the cards from the financial institution, you need to check out the features first.
- You are free from paying an annual fee once you have selected the perfect credit card
- There is zero interest for a set time frame on transfer, which can be within 12 to 18 months
- Procuring some cards will offer you with free credit monitoring and lower interest rates
- You can further enjoy free credit and identity protection at the same time
Each one of the credit cards will have its own specified benefits. Therefore, it is vital to get those cards which come with most bangs for the buck. Before you finalize on starting the procedure of selecting a card, always check out the perks or benefits first. In case you love to travel globally, airline mileage card can be that amazing option to choose from. On the other hand, if you are not a jet-setter, you can always work for to straight up cash back based cards for your use now.
|Also Read: What Is Debt Consolidation, and Should I Consolidate?|
Who can actually procure help from balance credit cards?
These forms of transfer credit cards are perfect for a financial option for those people, willing to get most out of credit cards. Banks are always there to compete with one another for the valuable customers around here with promising credit history. Therefore, they are likely to provide multiple incentives for matching any person. Most of the time, you need to have average credit to prove yourself as a good candidate for such cards. Even though some banks might offer these deals to people with less perfect credit, they are mostly in the lookout for those people with credit in 700 or 800 scores.
These deals are mainly suited for so many people out there. It is perfect for those who need longer time to pay off debt, like a college graduate. He has to make through the 3 to 4 years of college life to bag a job later and repay the debt once taken. Throughout the academic session, the person has to maintain good credit based rating to accrue moderate debt. After completing the graduation, they can start repaying debt but have to avoid high fees at the same time. The consumer will prove to be a great candidate for the balance transfer card. They might have a set time frame to start paying the debt off without adding any kind of interest at all.
If you already have a debt and want to get more out of credit card, this form of balance transfer card might be a good option for you. If the card offers average APR and some minimum perks, then a new card might be a good choice to make over here. In case, you want someone to deal with the highest interest-based credit card, balance transfer might be a great deal to save quite some bucks.
Checking out the perks:
It is always mandatory to check out pros and cons before selling for any kind of credit card and the same rule is applicable for transfer credit cards.