Make an informed decision. Know more about balance transfer credit cards.
A balance transfer lets you transfer the balance from one credit card or store card, where you may be paying interest, to another credit card.
This can be a good way to keep track of your balance and payments with everything in one place. Plus, if you’ve recently compared credit cards and discovered one that charges you less interest, transferring debt from one credit card to the other could save you money.
By reducing the overall cost of what you owe, a credit card balance transfer could help you pay off your outstanding balance sooner, and even reduce your outgoings. Transferring high interest balances to a credit card which features a promotional offer or lower rate could save you money on interest repayments.
As the major banks seek to get new business, they will often advertise very attractive promotional offers for example “0% interest on balances transferred for 6 months”. As mentioned this can save you a lot of money on interest if you have large outstanding credit card balances. They key thing is to try and pay off this debt within the promotional period as the credit card returns to its full interest rate after the promotional period expires.
Also, be mindful of applying for more than one credit card at a time. As part of the credit card application process, a credit check is performed which reduces your credit card rating. If your rating is already bad, the bank will likely decline your credit card application and the credit check will further reduce your rating, making it even harder to get credit in the future.