Tips And Ideas For Credit Balance Transfer

Tips for 0 credit balance transfer

Introduction

A credit balance is accumulated debt on your credit account. Credit card balance transfers allow a credit account holder to transfer the outstanding balances of one or more credit accounts to one credit account. This makes it easier for the credit account holder to track payments, the account holder is also able to enjoy lower monthly payments as well as interest rates. Some credit transfers offer 0 credit balance transfer interest rates for a certain period of time. However, most of the 0 credit balance transfers are accompanied by fees like the transaction fees and a lot of expectations. The following are tips that will guide in the 0 credit balance transfer process.

Step 1

Consider your current credit situation

To get a 0 credit balance transfer, you will need to have a good credit score which has a consistent and timely repayment pattern with a reasonable number of open credit accounts. Too many credit accounts will affect the credit score negatively and no credit balance transfer issuer will want to work with a person whose credit score is poor. Take advantage of the 0% APR by applying all the money to be paid as interest to the principal payment.

Step 2

Consider the amount you wish to transfer

It would be difficult to transfer huge amounts like say $25000 to a low credit balance transfer account. However, you can opt to transfer the maximum allowed amount as it is better than nothing and you will reduce the interest rates and the monthly repayments. You could continue transferring the credit balance until all your credit balances are cleared.

Step 3

Consider the fees of transferring the credit balance

Different 0 credit balance transfer issuers charge different types of fees during the credit transfer process. The most obvious fee is the balance transfer fee but most issuers will have their own additional fees. Look for the issuer who offers less and reasonable fees.

Step 4

Use the new credit account for balance pay off only

Avoid using the 0 credit balance transfer account for purchases since it is a loan. This is because, the purchases and advances you take using the new credit account will be gaining interest slowly until you finish paying the loan. This can be frustrating since by the time you finish to pay the loan, the interest will have accumulated to some huge amount that you will have to pay for and will continue gaining interest until the day you will settle them.

Step 5

Destroy the old credit cards

Closing your old credit card accounts will have a negative short term impact on your credit score but it will positive in the long term. Destroying the old credit cards will also reduce your chances of using the credit accounts as this would increase the debts that you are trying hard to do away with.

Conclusion

Most people opt for the 0 credit balance transfer due to the following reasons;

• to reduce their debts fester by moving to a company that offers low introductory rates that help the credit account holder pay off the debts faster.
• to save money through lower interest rates and monthly payments.
• to increase the credit score through opening a new credit account without having to close the older ones.

There is no doubt that 0 credit balance transfer is a good way to manage debts but, multiple 0 credit balance transfers can reduce your credit score since each credit company will add an inquiry notation on the credit report and many reports can be interpreted as poor credit worthiness.

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