A balance transfer would occur when a customer already has an
outstanding debt on another credit card from another financial
company. The customer
would than pay off the existing debt and put it on the newly chosen
credit card, therefore reaping the benefits of a lower or even 0%
interest rate.
Most credit cards offer the same basic benefits for balance
transfers, however some do change slightly and other aspects of
using the credit card should be considered.
These could include purchase interest rates, age limits,
credit limits and monthly repayment amount requirements.
What should you look out for?
The main thing to look out for is the existence of a balance
transfer fee. Most card issuers charge around 2% of the balance
transferred.
Please
use our credit card search facility to find cards which offer
introductory and/or ongoing balance transfer facilities.
