We help you in Consolidating your Debts

Balance transfer credit cards can be the ideal solution for anyone struggling under mountains of debt. Not only can you reduce your repayments dramatically, but you also have the advantage of getting rid of those delinquent accounts, which could end up improving your credit score at the same time.

How Balance Transfer Credit Cards Work

If you’re paying a high interest rate on a credit card now, then you might be able to transfer the outstanding balance over to a new lender offering much lower interest charges. This can reduce your monthly repayments and help to free up some of your income each month to put towards other things. With lower payments, you can also afford to pay a little more than the minimum payment to help reduce your balance more quickly.

Advantages of Balance Transfer Credit Cards

Perhaps the biggest advantage is the reduced cost of interest charges. If you have to repay money, it’s wise to try and reduce the amount you’re charged as you’ll find it much easier to work on debt reduction practices. You’ll be able to free up some of your income each month that used to go towards paying your higher repayment amounts.

Once your old balances are transferred to the new lender, your old accounts are no longer overdue. You won’t be bothered by calls from collectors or harassed by the lender for payments. Your old lender will report that you’re no longer in arrears and that the account has been paid in full to the credit bureaus positively, which will reflect on your credit score.

Disadvantages of Balance Transfer Credit Cards

While the attraction of transferring your balances over to a lender with much lower rates has its appeal, it’s important to remember that not everyone will qualify for the really good deals you see advertised. Always check and double check the final rate you’ll be charged, as this can change depending on your credit score and your past repayment history with your other credit cards.

You should always ask the lender’s representative if any balance transfer fees and charges will apply. In some cases, these fees are added to your original balance. This means once your balance transfer credit card is established, you’ll be paying back an even higher balance than you had before.

Not all balance transfer lenders will close your old accounts. While your balance may have moved over to the new credit card facility, your old, expensive credit card may now be sitting there waiting for you with a zero balance.

The temptation for most people is to continue charging more purchases on the old credit card. Not only will you have the new balance transfer credit cards to pay off, but you’ll also be adding to your debt problems by spending on the old cards at the same time.

If you intend to benefit from the advantages of balance transfer credit cards, always remember to call your old lender and close your old account completely. It’s important to remind yourself of the reasons why you wanted to transfer your balances over and stick to your goals or you could find yourself in financial difficulty in the future.