Mortgages

Credit Card Balance Transfers

credit cards The process of transferring your credit card balance to lower interest rate card is a good way to save you money. There are, however, risks involved which should be fully understood before you go ahead. There may be fees, penalties and clauses to be aware of.

Credit card companies would like to keep their existing customers as well as gaining new ones and so will often offer favourable rates to stop you moving on. However, there are far fewer low rate balance transfer rates on offer than in the past, rather, the onus is on offering its lenders lower fixed rates to secure your custom for longer periods.Some card company's limit how much you can transfer or how many times you can transfer a balance.

 

balance transfer credit cards It's often possible to transfer your debt to a different company that offers a lower fixed rate but fixed rates are fixed for a term and not for ever. There may be a charge on that transaction and you should check if it is a flat fee or a percentage.

It is a good idea to find out whether your original credit card company will charge you for terminating your account with them. Also be aware of the fees and rates the new company charges for new customers on any new purchases?

It is a good idea to find out whether both card companies notify you when the transfer is completed.

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