Reduce Your Debt Transfer Your Credit Card Balance to a Better Credit Card

[ad_1]


[ad_2]

You can now reduce your debt by transferring a high interest credit card balance to one with a lower interest rate or a better overall terms and features. You may also enjoy some rewards for doing it – rewards like travel accident insurance coverage, or an extended warranty for purchases made with the new card.

Take a look at this helpful guide for your transition and avoid costly mistakes.

Step # 1. Look for a credit card with a balance transfer offer.

You have to make sure that you will benefit in moving from one credit card to another. What information should you take note in prospective replacement cards? You can use the following to make an accurate comparison:

1. What is the introductory rate? When will it end?
2. Will the introductory rate apply to new purchases only?
3. Will the introductory rate also apply to balance transfers?
4. How much is the balance transfer fee?
5. What will be the annual percentage rate of the card when the term of the introductory rate is over?
6. How much is the card’s annual fee, if any?

Step # 2. Find your chances of getting an approval for the new card.

Don’t assume that because you meet the requirements you will be approved. Card companies usually decide based on credit score and payment history. You have to take a close look at this because most card companies will issue you cards with higher interest rates if you don’t qualify for the lower-rated ones. You have to consider if higher rates are beneficial to you lest you end up with a new card that acquires a fortune out of your interest payments.

Step # 3. Apply for the most appealing card.

As soon as you find the card that offers better deals compared with your existing card, like lower interest rates and superior rewards programs; and you have determined a realistic chance of getting approved, then it is time now to apply.

Do not forget to fill out the balance transfer portion of the application form. This is because there are offers that are good only at the moment of opening and subsequent transfers are treated as cash advance, in which case, you won’t enjoy promotional terms that your initial transfers do.

Step # 4. Stop using the old card.

You have to stop using your old card when the transferred balance has been confirmed. Cut it up or put it away so you won’t be tempted to use it. Using your old card after the transfer defeats the whole purpose of moving your money.

source
#Reduce #Debt #Transfer #Credit #Card #Balance #Credit #Card