Mon 8 Feb 2010
Pros of a Balance Transfer For Life Credit Card Offer
Posted by waynejackson1971 under Credit Cards
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Among the primary success stories in credit cards during the last several years has been the zero per cent balance transfer deal, where customers could ward off paying interest on the arrears by transferring it on to a newer credit card that billed no interest for a small span on debt transferred over to it.
Not only was this widely used by consumers, who were able to dodge paying interest charges on what they owed almost indefinitely by changing the balance from card to card, it became a hotly fought for marketing point for card account providers who needed to offer longer and longer opportunities to garner brand new prospects. Regretably, this scenario couldn't last – it was plainly costing the credit providers an excessive amount of profit in lost interest fees, and thus the appeal of balance transfer deals started to be restrained by additions like a balance transfer fee, where a flat percentage of the debt transferred onto the card was incurred as a handling fee.
At this time, 0% balance transfers are still on the market, but the dwindling variety of credit card issuers means that it's hard to find a new company to transfer the balance to at a zero per cent rate. What can you do if you still have a hefty debt, and just want to pay as little interest as possible? The answer is a life-of-balance transfer promotion.
With these specials, in lieu of paying 0% for a month or two on your debts, followed by the total standard APR of the account once the promotion offer has run out, you agree to pay a minimal rate of around 5% APR that is fixed until the debt has been completely paid off. Although you're still having to repay interest, these specials are far more inexpensive than regular borrowing on a credit card, and in many instances are also much less expensive than other categories of money including personal loans or overdrafts.
In a perfect world, you'd take the opportunity presented by this affordable rate to concentrate all your financial firepower on clearing the debt as quickly as you are able to, and you certainly shouldn't make purchases with your lifetime balance transfer card if you want to make the most of the low rate on offer.
So, in case you have a sizable credit card debt and want to begin repaying it in the most efficient and affordable possible way, a lifetime balance transfer deal is worthwhile thinking about.
Article supplied by: Low Rate For Life Balance Transfers



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