Balance Transfer Cards. A credit card is an opportunity to make purchases with some advantages; however, sometimes we do not use them properly. While credit allows you to pay long after the purchase has been made, it is also likely that this distance will make you forget to pay for it and buy more than you should.
When does debt transfer apply?
When debts accumulate, it becomes increasingly difficult to pay off the credit card. It is no longer only about the cost of the products you have purchased, interest is also added and if you did not know how to stop in time, the debt will be huge. Although it may seem exaggerated, this is a common situation and for this reason some banks offer alternatives for customers who already have a large debt with another financial institution.
How to transfer a debt?
When acquiring a credit card one of the most important features you should know is the interest rate. If at some point you do not cover the total of your monthly payment, it will accumulate. Not all of them have the same percentage. For the same amount, each bank and credit card will charge you a different amount when you leave a portion of the balance unpaid.
Cards designed for transfer offer you a comparatively low interest rate. When you acquire one of these plastics you have the possibility of attracting your debt from another bank to pay less interest. Each bank has a different criteria about what is low interest, so it is best to compare between different options, although they usually offer attractive percentages, it could be very similar or even higher than the one you already pay.
In some cases the same bank will invite you to transfer balances from other accounts. Sometimes you will have to ask for it directly. In all cases the fact that you ask for the card does not guarantee that the request will be accepted.
Before you get into this situation, it is best to avoid unnecessary charges that are beyond your ability to pay. The balance transfer is an alternative for when your debt has grown a lot but if you control it from the beginning you will avoid many problems in the future. If you are already in this situation, evaluate your options.