Taking advantage of a 0% balance transfer offer is one of the best ways to enjoy a couple of months with no credit card interest fee. It allows you to transfer a balance from a credit card where you might be a higher interest fee each month to a credit card where you pay no interest for a set period of time. In other words, credit card balance transfer means transferring full or partial debt from one credit card to another to avoid credit card debt. But it is important to understand that it is the process of transferring debt from one card to another, you still need to pay it off.
Below are the reasons why you should take advantage of a balance transfer credit card offer.
Lower interest rate
Credit card providers sometimes offer low-interest balance transfer perks to their customers. If you have a high balance on your current credit card that has a higher interest rate, you can transfer it to a card with a lower interest rate. In this way, you can pay off your credit card debt faster by paying the lower total amount you pay as interest. However, you should read the fine print carefully to understand all the terms and conditions to prevent potential pitfalls. Keep in mind that balance transfer offers always expire. So, be aware of the tenure and pay off all your balance before the offer expires. Otherwise, you will be paying a huge amount of money in terms of higher interest rates upon the expiry of the offer. Don’t be afraid to ask questions and ask them what the new rate is when the offer expires.
To consolidate debt from multiple credit cards
If you need to make multiple credit card payments, you can consolidate all your debt from multiple cards onto one card. As a result, you are better able to simplify your finances so you can focus more on other important things. When doing so, you will not only enjoy a lower interest rate but will also have a convenient way to make monthly payments. However, you should do your homework to avail all the available perks even without building credit card debt (in case you are not following the terms and conditions).
Move to a new credit card with better terms & perks
Along with higher interest charges, you might be paying higher fees and other service charges with your current credit card. This is where taking advantage of an enticing balance transfer credit card offer with additional perks and better terms could be a great way to move to a new credit card that fits your needs. As a result, you can pay off with better terms while enjoying other perks at the same time.
Get out of debt faster
Getting out of credit card debt is one of the common reasons people apply for balance transfer offers. They are offered lower interest rates so they can save more bucks even while paying off debt as faster as possible. Hence, reading and understanding the terms and conditions carefully are highly recommended by experts. A balance transfer offer can also put you at higher risks of getting into more credit card debt, if not used cautiously. That’s why; make sure to understand all the terms to prevent any additional charges and fees.
You can get additional credit card perks
In addition, to enjoy a lower interest rate, getting other enticing perks and benefits is another reason to take advantage of a balance transfer offer. The credit card provider may also offer you benefits like cash back, travel points, reward points, online shopping discounts, and much more. However, you should look for an offer that truly fits your individual needs and requirements. There are so many websites that allow you to search for and apply for credit cards in different categories and particular offers.