Do You Need to Transfer Your Credit Card Balance to a New Bank to Lock In at 0%
Many zero percent balance transfer cards only allow you to transfer balance from another bank. They don’t allow the balance to be transferred from within the same issuer. When you transfer a balance, the bank will charge you a balance transfer fee. The fee is about 3% – 5% of the transferred amount. When choosing a card, you have to take into account the fee in your calculation.
The card only offer the interest free period for a limited time period. The zero interest intro promo will last for 3 – 21 months depending on what balance transfer card you choose. It is important that you note down the date on which the intro promo will end so that you know when the card will start charging interest again.
You must make the repayment promptly if you want to continue to enjoy the waived APR interest fee. If you miss a payment, they may take away the 0% APR deal and you will have to pay interest again.
Balance transfer cards with long zero percent intro promo require a good credit profile to qualify. Some balance transfer cards will approve people with average credit score. If you have a low credit score, you can sign up for balance transfer cards with low ongoing interest rate in the intro promo period.
There are many balance transfer offers from various banks and credit card companies. You can use the credit card comparison tool to compare the length of the 0% APR intro promo and balance transfer fee. You must do some calculation on how much you can pay each month and how many months it will take for you to clear off the balance. This allows you to choose the card with the right 0% APR period. You can sign up by filling in your information in the online application. They will give you a preapproval response within 1 – 2 business days.
When you are finally approved and received the card, you can transfer the balance. You can transfer the balance by making a phone call to the customer service center. The representative will ask you for the information of your old credit card account information and the amount that you want to transfer. It takes 1- 3 weeks for the balance transfer to complete. During this time, you have to continue making payment to the old issuer.
You should create a strict spending plan to free up some more cash every month. Although you just have to make a minimum payment, paying more will help you to pay off the balance faster. You should always track your budget and make sure that you are staying on track in your goal. You can continue following the budget plan even after you have cleared the credit card debt.