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Benefits of Balance Transfer Credit Cards
Balance transfer becomes an option for many when they come to know that they are trapped in the jaws of high-interest rate credit cards by being attracted with the introductory offers. You can choose to go with the balance transfer option if you want to go for low-interest rate credit card or pay off dues on your current credit card with new one. The banks offer specially designed balance transfer cards to enable the customer to pay their current credit dues with the new card at lower interest rate. You should consider many important factors while choosing the balance transfer card to make most of it. Some important things to look in are credit limit, the expiry date of the card and the interest rate charged by the new lender.
Benefits of balance transfer credit card
This is the most welcoming feature of the credit cards. The borrower who tends to go for late payments due to unavoidable circumstances will have an opportunity to transfer their pending dues to the new card and enjoy the repayment with lower interest rate.
Buffer time
When you transfer your credit card bills to the new card with the balance transfer option, the new lender pays off the outstanding bills and you can comfortably repay the debt with the low-interest rate of time. These low-interest rates on credit card balances are applicable over a period which is termed as buffer period, later standard interest rates may apply.
Save extra interest on pending bills
Apart from impairing your credit score, late payments for the credit card bills obliged you to pay high-interest rate till the bill is paid in full. None other than the balance transfer card can be the best option to pay off your credit card bills at a go. As the outstanding balances are transferred to the new card, the new lender will offer you low-interest rate on the balance transfer amount and you will save a good amount on interest rates here.
Transfer debts of multiple cards
Balance transfer credit cards allow you to transfer the balance on multiple cards. You can easily pay off the outstanding debts on the old cards with the help of the demand draft issued by the new bank However, you should make sure that you get a balance transfer card from the new lender has high credit limit than your accumulated outstanding balances so, that you need not seek out other alternatives to pay off pending balance.
Quick processing
Balance transfer credit cards are quickest and easiest way to pay your outstanding dues on the credit card. As the banker has a clear understanding of your credit profile, there will be no stringent requirements to get a credit card. However, you should look into the restrictions that are in place for the minimum and maximum amount that can be transferred through these cards.
