Balance transfer information:
The credit card balance transfer is a way of transferring outstanding debt from cards towards a new or already existing account. The interest rate is 0% APR (special introducing rate). The time taken for these transfers may take some weeks. Different credit card issuers have different view on the time taken. They are:
For American Express, it takes 5-7 days, extension till 6 weeks. For Bank Of America, the time is 2 weeks. Capital one takes 3-14 days. Chase takes up a week which may extend till 21 days. Citibank and Discover takes a time of 14 days.
The whole balance transfer completes in 3 steps, 1st one is, a particular issuer offers for a Balance Transfer in the market. 2nd step is, the customer applies for this balance transfer credit card and the 3rd and final step is, to just sit back, wait till the approval is made and hence finally the transfer is done.
Some complicacy may arise due to human errors or delays. The following few principles must always be kept in mind to avoid such complications. One, the person should be aware of the deadlines. Two, keep on paying through the old card, as no one knows how long the transfer might take. Three, the payments on the new card should be done with promptness without fail. Four, be careful about the new purchases made through the new card.
A plus point for balance transfer is that it may improve the credit scores of the user. Specifically, if the transfer of the balance makes sure to decline the credit utilization rate, then it will definitely benefit the credit scores.
Prior to application, the customer should have some time in hand to make a comparison of the various offers available in the market. Some terms and conditions where the borrower must pay the most attention are :- the introducing interest rate, the promotional time span, the fees allocated with balance transfer, the APR and the annual fees incurred.
A balance transfer is a good option that will help you pay down the debts and get rid of higher interest fees. If the borrower is using the balance transfer just
to lower debt, then it’s advisable that the new card must not be utilised for new purchases. Its a small thing to note that the balance transfer may take time from minimum to maximum, therefore, one should keep on making payments from the old card till it’s confirmed that the account balance is zero.
Lastly, A person in want of making the credit reports error free and of the best form, s/he may apply for the chosen credit card offer which might improve the approval odds. Hopefully, the article was of some importance to my reader. If yes, please ensure your comment in the comment box. Take care!