Credit cards balance transfers is when you take your balance from one credit card and move it to another one. Most people do this in order to get a lower interest rate and therefore to pay less. Most often times once the transfer is complete, the old account is closed and the person decides to use the new card from now on, however some people transfers balances and then continue to use both cards.
Credit Card Balance Transfer Tips
If after examining all of the information about both credit card accounts and realizing that the new offer does carry a lower interest rate then there are certain things you must be aware of before doing the transfer. Read on for some balance tips.
Even if you decide to transfer a balance from an old to a new card make sure that you make the minimum monthly payment on the old card. Do not assume that the balance transfer will take care of the payment because it likely will not. This is a credit risk you are better off not making.
The transfer might take a few weeks to be processed and in the meantime you will have to deal with a late fee that you did not count on. You will then notice that the interest rate has changed but not for the better and your credit report will be affected adversely. Bear in mind that balance transfers are not always accepted so your dealings with your old company may not be over. Whether you stay or go you want to always be on good terms with whatever company you are a customer of.
Even if the new credit card issuer assures you that the transfer has gone through, verify it with your old company. If you would prefer not to call the old company then wait until your monthly statement arrives in the mail. Once you see the zero balance showing then you can breathe easy and know that all is well. That will also signal the end to making monthly payments to your old credit card issuer.
When you apply for a credit cards balance transfers, regardless of which company you deal with, make sure you fill out the application properly. Do not forget to fill in any of the blanks and never lie as this is fraud and can get you in deeper troubles than simply just having your request denied! Always read the application over carefully before you send it in to scan for any errors.
