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Posted on Dec 6, 2013 in Finance |

Transfer Credit Cards

Transfer credit cards or balance transfer credit cards are a recent improvement in the history of credit cards. Suppose you are a credit card holder with a balance debt of $ 7000. Now you decide to switch to a new card. But you have a liability outstanding on the very first card, your debt balance. The new business enables you to transfer your outstanding balance on the current card to the new card. The new one particular is a balance transfer credit card. Suppose the credit limit of your new card is $ 25, 000. Your balance with the old card is $ 7000. Now the credit limit will have a reduction to the extent of the balance amount. The credit limit of the new card will be $ 18, 000.

Transfer credit cards are advantageous in many ways. Most of the cards permit you a very low or nil interest for the balance. Therefore it will be beneficial for you in your debt management. As a matter of reality, these companies offer you a % transfer facility as implies to woo you to leave your initial card and take theirs. But this low or nil interest will be only for an introductory period of 3-6 months. Also, there might be some hidden fees. Hence it makes sense you look in to the terms and conditions if any hidden costs lurk behind the rosy face. Some businesses charge some introductory charge or annual charge. But it is an benefit that you can save the interest of 16-18.

If you opt for a balance transfer credit cards, initial you have to apply to the card issuer stating your require of a balance transfer. Along with, you ought to obtain the credit statement from your card issuer and create it to the new firm.

On due approval of your transfer application, the new card issuer will spend off the balance amount payable to the old card issuer. Then the amount paid by the new card issuer will be added to the debit of your new card.

Right after your submitting of application for balance transfer, it may possibly take a couple of weeks for the transfer to take impact. Throughout this intervening period your payment date may possibly fall due which you may not take notice of. This lapse will have an adverse effect on your credit report. As such, you should guarantee the remittance of the due sum by the stipulated time till the transfer is effected.

Eiko and her credit card
Credit Cards
On the 24urenloop there was a stand of KBC where you could let them take a picture to place on your credit card. That is how Eiko received her initial credit card! Ok it was a festival credit card but anyway…

Image taken by Fu.

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