Is it good to transfer credit card balances?
Interested with transferring card balance to another credit card? If that is so, you are not alone after all doing so makes perfect financial sense. This is because transferring these balances to another with low credit can help better your finances. More so, it helps improve your credit card debt if what you want is to be successful in the area of credit card debt. However, you must know that if you’re cannot transfer your debt correctly, it could end up with you having missed payments and late fees. As such, you need to follow a sure way for smoothly credit card balances transfers.
Steps to take on transferring your credit card balances
Here are some easy and simple steps you can follow for smooth credit card balance transfer:
Understand all the terms and conditions when it comes to balance transfer
Before you ever decide to have your credit card’s balances transferred, it is important that you first understand all the conditions that comes with it. Understand the credit card’s limit, the balance transfer fee, the interest rate for the balance transfer, etc. so you understand well what it is that balance transfer entails.
Choose credit card with low interest rates
When you have already chosen to transfer your credit card’s balance, it is better to look for credit cards with lower interest rates. This way, you can extremely minimize the fees you will have to pay. With lower interest rates, then you can definitely improve your card’s credit.
Transfer Your Credit Card Balance
After filling out application for low interest rate credit card, it is time to transfer your credit balances. To do so, you can either write a convenience check from your new issuer, or perhaps simply call the issuer and ask for the debt to be transferred. On the other hand, you can just do the entire process online.
Keep Paying for Minimum Payment in Your Old Credit Card
Now, the biggest risk with transferring your debt to another card is the chance of missed payments and late fees. To avoid this, it is best way that you can avoid this is to keep making payments, at least the bare minimum, to your old credit card. Do this until the time that your previous issuer clearly confirms that balance transfer has been completed.
Get Final Statement from Your Issuer
Once everything that has been done and the balance transfer have been complete, it is advisable that you get a final statement from your old issuer, particularly if balance transfer has successfully paid off the debt on your old card. This is to make sure that everything truly is complete and you no longer have balance with your old credit card.
Following these steps, hopefully you can improve your credit and finances. On the other hand, even when you do not have credit with your old credit card, be sure not to ignore the billing statements from your new issuer. After all, you still have monthly payments.