A credit card is a must have plastic in the wallet of a common man in digital India. Few people step ahead maintaining multiple cards to address different needs in life. These card turns out to be an effective financial tool in your hands when you can effectively manage to pay bills on time. In most of the cases, people holding multiple credit cards end up in making the late payments because of huge debt or forgetting the due date. Irrespective of the reason behind late credit card payments, the scenario will pull you into revolving debt and finally you see huge outstanding bills. An effective way to cut your huge outstanding credit is to go with credit card balance transfer.
Reduce Credit Card Debt With Balance Transfer Card
Credit card balance transfer
When you have huge outstanding debts on the credit card payments and are unable to afford repayment with your current income, a balance transfer could be a right choice. There are many balance transfer credit cards that help you transfer your outstanding balance to the new card. The new lender will take the responsibility of repaying the whole debt to the old lender. You can comfortably repay the debt to the new lender over the given interest-free period or slashed interest rates. As there are many balance transfer cards available in the market, choosing it right may be a challenging task. It is important to take few factors into consideration while choosing balance transfer credit card.
Points to consider while choosing balance transfer credit cards
- Check if the card you are using offers 0% APR in balance transfer amount for the specific period. If so, these cards are not going to offer any interest-free period for the new purchases made on the card. If your preference is to enjoy 0% APR on the balance transfer card, use the card strictly to repay the outstanding balance.
- If you are given an option to enjoy low APR as the introductory offer, make sure you check the APR of the card after offer period before picking one.
- Another type of balance transfer credit cards you come across is interest-free credit cards for few months. If you are picking such cards, you should be watchful about high processing fee on the loan.
- Apart from that, the banks have a restriction on the minimum and maximum amount that can be transferred through balance transfer card. Before you take a final call on the card you pick to lower your credit card debt, check for a cap on minimum and a maximum amount that can be transferred through the card.
- Take advantage of the comparison sites that brings the features of multiple credit cards in the single window and makes it easy to compare and pick the right one.
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