High-interest debt can feel like a death sentence.
What Is a Balance Transfer Credit Card?
Our team has compiled alist of creative waysyou can fatten your bank account this week.
Not sure where to start? Check out our roundup of thebest balance transfer credit cardscurrently on offer.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Finally, be aware of balance transfer credit card limits.
How Do Balance Transfer Credit Cards Work?
This usually comes with a fee.
But what is the actual process of a balance transfer?
Lets break down how balance transfers work in five easy steps:
1.
Applying for a credit card drops your credit score temporarily even if youre denied.
Find a card with the right mix of features and terms for your situation.
Once youve settled on a card, apply.
Under federal law, credit card companies have 30 days to issue approval or denial.
Initiate the Balance Transfer
you might typically initiate a balance transfer online or over the phone.
Whichever method you choose, youll need the account information and the amount of debt you want to move.
Wait for the Balance Transfer to Go Through
Balance transfers dont happen immediately.
Pay Down the Balance
Once the transfer is complete, start paying down the credit card balance.
What Kinds of Debt Can I Balance Transfer?
But balance transfers themselves can do some harm to your financial wellness.
Before opening a balance transfer credit card, consider the pros and cons.
The main reason to open a balance transfer credit card is the 0% APR introductory period.
Balance transfers can be great for your credit score if you keep up with the payments.
Keeping it open will decrease your credit utilization, which boosts your score.
Some borrowers struggle with remembering multiple monthly payments across all their outstanding debts.
That means fewer chances for late fees and negative marks on your credit report.
Drawbacks to Balance Transfers
Here are some of the drawbacks to taking out a balance transfer card.
Not all balance transfer cards are created equal.
When Is a Balance Transfer a Good Idea?
Youre not out of options.
Approach the conversation delicately, and verify your friends and family know that you understand if they say no.
If a loved onedoesloan you money, dont take advantage of it.
Work hard to pay them back just as you would any other loan with an official lender.
Using a DMP may result in a mark on your credit report.
Debt settlement andfiling for bankruptcyare more extreme solutions and should only be a last resort.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
