What is a credit card balance transfer? Well, balance transfer implies shifting balance from one credit card to another one- especially the one carrying reduced rate of interest. According to financial experts, the balance transfer act could be really helpful when you are tangle in high credit card debt. In fact, there are several advantages of transferring your balance from one card to another.
Save huge bucks
The most significant pros of transferring balance is that it allows the user to save huge bucks and the it is the very reason why balance transfer is very popular among smart credit card users. Balance transfers with 0 % are specifically great yet even some low-rate transfer could save good money in case your present card interest is high or moderate. If you are into $10,000 card debt & are paying fifteen percent rate of interest a year, a twelve-month 0% card balance shift can save you around 1,500 USD through a year.
Fast freedom from debt
This is another big reason why financial experts count on balance transfer when somebody is badly into credit card debt. Yes balance transfer is one of the major keys to get rid of credit card debt. The interest that you are paying for credit card is bank’s route to make profit from you every month & year. If you can transfer one or even more number of present card balances to a reliable 0% interest carrying card, it would be easier for you to pay off the creditors quickly. This is because your whole monthly payment would be moving towards principal & not interest- enabling you to come up with a faster debt-free life.
In case consolidating the card debt into a 0% interest card relieves some bucks in your financial sack every month, you might come up with extra payments for your debt- which will ensure a faster debt free life in turn.
Additional card perks
Another fantastic benefit of taking to balance transfer between credit cards is rewards or additional perks. You would be able to apply for cards which would reward your expenditure or offer your nice perks for shopping.
Say for example- rewards cards, travel cards & airline cards often extend amazing cash-back awards, free flights as well as great discounts on hotel charges. If your plain-vanilla card does not offer any extra perks, try to find out some balance-transfer deal which comes with good perks.
Them the balance transfer process is also preferred since it assures simplified finance for the user. The process enables you to simplify and streamline your finances by a great extent. When you are moving the balance from several cards to one single card, you relieve yourself from all the hassles of going into several card payments for several credit cards. This way, the user is just left to work on the payments and paperwork for one single account. Isn’t it smoother to pay off balance of 1 credit card in place of paying off several balances?