A balance transfer credit card is basically the transfer of the balance owed on a credit account to an additional account held by another credit agency. There are different types of balance transfer credit cards and these include:
These balance transfers are usually performed when the card holders do not have enough funds in their account and wish to avail more services from the credit agency. It is also common for credit users to transfer all their existing balances to a single card, so that they have one account and do not have to carry multiple accounts.
Balance transfers can be done both online and offline, as well as between credit cards with different providers. The most popular reason for transferring balances is for the convenience it offers to the customer.
Credit card issuers usually require some type of co-signer, who is supposed to pledge the full liability to back the balance transfer. In some cases, they may also ask you to put some extra cash in an account in order to make the payment, which will then be transferred to your new credit account.
Many balance transfers are also made between credit cards, especially during the holiday season, where many people apply for a card to enjoy special offers during the period of high spending. This allows the customer to save money and spend less when the high spending season starts.
Credit cards are a very useful tool, as they allow people to purchase products that they cannot afford. But balance transfers can often cause problems if there are numerous accounts that are linked with the credit cards. the credit cards have a zero balance and have not been used in at least six months. However, if the credit cards have a good history, there are chances of it being accepted.
The credit card issuer does not have to check the card account for the unpaid balance every month, since it is already a part of the credit history. The only thing that a credit card issuer has to verify before accepting the balance transfer request is the statement issued by the issuing card. If the card issuer finds that the balance transfer is due, it will send the credit card holder’s a letter that contains a reminder about the balance transfer.
The card holder should be responsible enough to make the payment in time and notify the issuer before the deadline so that the card issuer does not miss the deadline. Also, you must ensure that you pay the balance at least six months before you transfer the balance.
Before transferring the balance, you should also make sure that you have sufficient funds in your credit card account. If you have a low credit score, you should always try to improve it by taking up credit card management course before transferring the balance to another credit card.