Balance Transfer Credit Cards
Balance Transfer Credit Cards is the facility offered by the banks mostly to the regular or privileged customers for the mutual transfer of funds from one credit card to another credit card. It is assumed that this transfer takes place mainly between the two cards out of which one is used less frequently. This facility is relatively new concept established in today’s transactions, and it is a fact that many users perceive it in a wrong way. It is a misconception that these Balance Transfer Credit Cards offer a funds transfer at lower interest rates or even at zero interest rates. Though it is true, but a half-truth. This particular provision is available only for the transactions taking place in the first few months. Hence, it becomes essential to know a more about these Balance Transfer Cards.
What is Balance Transfer Credit Cards and how does it help?
As far the initial APR free period of six months is concerned, these Balance Transfer Credit Cards are actually a bright and convenient option available. This particular period is aimed to assist users to pay their outstanding balance so that rates can be increased in the later stage. This service suits more to customers who are not satisfied with the existing credit card company and need a change. Once this period of six months is over, there are still few schemes available to entice users to transfer the funds.
Process of Balance Transfer Credit Cards
As compared to other banking transactions taking place, Balance Transfer Credit Cards is actually a lengthy process. Initially you have to inform the issuer of the credit transfer about these transactions, upon which you are supposed to fill and send a form along with a demand draft to the old card issuer. This process takes about 8-10 working days. Once you are done with these formalities, all you need to do is to transfer the balance to the new credit card company.
Though this is a facility provided by your credit card companies, it is not a free service, and hence transaction fee of some flat percentage of your total amount transferred is what you need to pay.
Selection of Balance Transfer Credit Cards Firms
Since this process involves substantial transactional amount, you have to be spot on with the selection of the Balance Transfer Credit Cards firm. This decision should be taken based on several factors such as interest rates offered, transfer fees asked, and credit limits made available. After this selection, Balance Transfer Credit Cards is a facility that if used carefully, is a boon for the users.