What is a credit card balance transfer

What is a credit card balance transfer?

One of the safest (and easiest) ways to sort out your finances is to learn the art of the balance transfer, that is to say, transferring the balance on an existing credit card (or store card) to another card using a balance transfer offer. 

Say you have an outstanding credit card balance, or perhaps your credit card company is taking advantage of an obscure loophole and your interest rate has just gone through the roof, taking your financial stability with it.

Well, now is the time to take advantage of the natural order of capitalism and switch that balance to another company, one where you can literally save hundreds of dollars per month on interest payments alone! 

Holding Money
Take advantage of that low introductory rate to save yourself hundreds or even thousands of dollars.

What is a balance transfer anyway?

A balance transfer simply means that your new company takes on the financial risk of your unpaid balance. Your new company pays your old card off in full, and for a small fixed fee or percentage (whichever is more) moves it over to your new account. Once the balance has been transferred you can close your old credit card.

How do they save me money?

Intense market competition induces many credit card issuers to offer 'introductory rates' on initial balances transferred. Many times this introductory annual percentage rate (APR) is 0%. Statistically, many people will not pay off this balance within the introductory period (usually six or twelve months) so unless you transfer your balance to another card when the introductory 'grace' period ends you'll start paying interest on the balance again. However, you can take advantage of that low introductory rate to save yourself hundreds or thousands of dollars. Or, with a little discipline and belt tightening, maybe completely pay off the rest of your debt at the introductory rate.

Holding Credit Card over Ipad
You can initiate a credit card balance transfer at any time.

When can I transfer my existing balance?

Don't let your current company intimidate you;  take advantage of that low introductory rate to save yourself hundreds or thousands of dollars.. Many people put the interest saved into a 'rainy day' savings account to protect themselves, so the right balance transfer can actually be a life changing financial move that starts you off on the road to building up your savings, and security.

How easy is it?

In short, very! Pulling off a balance transfer is relatively easy and stress-free. Since credit card companies survive off of new accounts, the whole process of rolling over your balance usually involves little more than filling out a form and providing any necessary identification to switch the balance to the new company.

Proper use of the balance transfer can save you hundreds, even thousands, of dollars and protect your credit rating and financial security for the long term, and it is relatively easy to get started. So if you've been paying interest on that old balance, don't wait around! Start comparing credit cards with balance transfer offers today and start saving money you otherwise waste paying interest.