Balance transfer information

(froy). Submitted on Tue, 24 Jan 2012

Balance transfers are among the most popular features of credit cards for new customers, and are often deal-makers when it comes to which card a person decides to apply for. Since their introduction, balance transfers have helped many credit card holders to manage their balances and debts more effectively, especially if your card provider does not charge any interest when you transfer money between different accounts.



Transferring money from one account to another can be an intelligent way to avoid debt, by taking advantage of the grace period offered by most credit card providers after money is transferred, and certain accounts have lower interest charges than others. Savvy savers can avoid ever incurring expensive credit card debt again by using balance transfers on a regular basis, but it's crucial to read the terms and conditions of your credit card account to find out what charges may be applicable for these services - as this could mean you will be losing money overall.

You should also be aware of limitations on balance transfers for your account - both the minimum amount that can be transferred and the upper limit. To make balance transfers economical for credit card providers, the minimum amount that can be transferred will usually be around £100, but may be more for new customers opening their first accounts.

The rates of interest charged for balance transfers vary between providers as well as between different types of credit cards, so it can pay to do your research and compare several different options before deciding on the balance transfer credit card that's best suited to your financial situation and saving habits.

Look out for cards that offer special promotional rates for balance transfers, which may be interest-free or have a low rate compared to standard cards. Some promotions may be continuous or have a fixed term, so you should think about how long you plan to use the account for. If you are looking to the long term of six months or more, it could work out cheaper to apply for a low interest rate balance transfer card that offers long term savings, rather than risk paying higher charges once a shorter term free-interest period expires.

Once you have received your credit card, it will usually be possible to make balance transfers online, offering greater convenience when managing your money and avoiding waiting times and call charges when making transfers over the phone.

 

About the Author

The author of this article is a part of a digital blogging team who work with brands like Barclaycard. The content contained in this article is for information purposes only and should not be used to make any financial decisions.

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