With the amount of credit card deals on the market it is important to understand what the balance transfer credit cards are. There are a couple of types of balance transfer credit cards. We will look at three.
First you have a balance transfer credit card that allows you to transfer a credit balance from one card to another card. The second type is the balance transfer cards with an introductory deal. Not all balance transfer cards offer a 0 percent interest deal for the first 12 months.
The balance transfer credit card typically receives the entire balance you have on one card. For example, if you have a balance transfer card with a limit of 4000 pounds and a card with 2000 pounds on it you are able to transfer the entire amount.
Typically any balance transfer credit card is going to have a fee. This fee can range from 2.5 percent to 3 percent of the credit balance. If you transfer the 2000 pounds at a 3 percent fee you will gain 60 pounds on your card from the fee. Some balance transfer cards will waive the fee if you have top credit or if they have a deal going on. This is rare. You can also find some cards with a cap to their fee. For example if your balance transfer fee would total over 99 pounds and the cap is 99 pounds, you don’t pay a pence more.
There is one other type of balance transfer card you can obtain. This is called a life of the balance transfer credit card. Barclay is known for them. You will pay a certain APR rate until the balance is paid off, even if it takes you 20 years to pay the balance off. The APR is usually below 5 percent and awarded to good or excellent credit customers.
December 24th, 2010 at 12:38 pm
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