When you are in credit card debt, the use of a balance transfer credit card sounds like a great option to move your debt to a credit card with a 0% balance transfer offer. This allows you to move the balance of your credit card to another one where you will pay no interest rate for a set period of time.
What is a balance transfer?
A balance transfer is a process of moving your debt from one credit card to another one. People use credit card balance transfer to take advantage of lower or 0% interest rates. This helps users pay less amount towards interest rates on the money they owe from another credit card. Transferring balance is also a good idea to organize finances effectively by consolidating several payments into one credit card.
What is Balance Transfer Credit Card?
A credit card designed to receive outstanding balances from other credit cards is known as a balance transfer credit card. Such cards usually come with a lower or 0% interest rate on transferred balance for a specific period of time. These cards are used by people who want to transfer the balance of a current credit card with higher financial fees and pay it off easily without paying higher interest rates. Balance transfer credit cards also come with rewards programs that help consumers save or make money while paying their bills or other payments.
Advantages of a Balance Transfer Credit Card
Let’s have a look at the benefits of getting a balance transfer credit card and how it can help you manage your finances effectively.
Lower or 0% credit card interest rate
Getting a new card with a lower or 0% interest rate is beneficial if you are currently using a card with a higher interest rate. When you get a balance transfer card that has a lower interest rate, more of your money goes towards reducing your credit card debt instead of paying high interest. Cards with a long promotional 0% APR also allow you to pay off your debts in a timely manner even before the promotional 0% APR period ends. In this way, you can eliminate your debts as soon as possible to enjoy a debt-free lifestyle and save more for your future financial goals.
You can move your balance with better terms
If you are using a credit card that has complex terms like higher financial fees or a shorter grace period, a balance transfer credit card helps you transfer a balance with better terms. By doing so, you can close your old credit card for a good reason. Along with offering lower or no interest rates, balance transfer credit cards can also help you earn free rewards points on your everyday spending. This will also help you save a lot of bucks on shopping and other monthly payments.
Balance Transfer Credit Cards Make Debt Consolidation Easier
Moving balances from multiple credit cards to a single card makes credit card debt consolidation a lot easier. This eliminates the hassle of making monthly payments to different cards. When you transfer all your balance to one credit card, you just need to make payments towards that one card. As a result, you are better able to stay on top of personal finances to get rid of credit card debt faster than ever.
You can save money on interest
One of the major benefits of using a balance transfer credit card is to save money on paying no interest. Since there are credit cards with APRs ranging from 14% to 24%, a balance transfer card provides you with a 0% APR period of 12 to 14 months. In this way, you can save a big deal of money on paying no interest while getting out of credit card debt at the same time.
Getting a balance transfer credit card is useful when you are facing troubles in paying your credit card debt. This will give you more time to pay off debt even with a lower or 0% interest rate to become debt-free faster.