Balance Transfer Credit Cards

Balance Transfer credit cards provide a great way to quickly reduce the amount you are paying on any credit balance.

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About Balance Transfer Credit Cards

Balance Transfer Credit Cards are credit cards that have a low interest rate on credit card balance transfers.

A Credit card balance transfer is the transfer of money kept in a credit card account to an account at another credit card company. This action allows clients to consolidate their credit card debts onto a single credit card account and achieve savings on interest charges.  

New customers are offered a “teaser rate”. It is a particularly low rate offered in order to attract new customers and encourage them to transfer their balance. In this way, new customers have extra low initial rate comparing to normal rate and that results in lower monthly outflows of money to the credit card issuer in the initial period. The interest rate is very often 0% when a new credit card account is opened.

The teaser rate is temporary with the duration period varying from 6 to 15 months. Failure to make regular payments may result in the withdrawal of the teaser rate by the bank.

The length of the teaser rate is the main factor when looking for credit transfer as when it is over there is usually a noticeable increase in the rates as bank tries to make up for the losses made.  This can be avoided by switching again to another credit card company. 

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