Credit Card Balance Transferring
Understanding how balance transfer works for credit card
First of all, we need to understand what balance transfer means. Is it as simple as transferring a part, or an entire, debt from your old credit card to a new credit card, in order to save your money on interest payments? Usually, credit card holders choose balance transfer on credit cards based on certain “perks.” Perks include low introductory interest rates that can be as low as 0% and can range in time period from a few months to a year. Through this, you will be saving your interest money during the introductory period. Once the introductory period is over, you will be charged with the interest rates on your debt each month.
How does it work?
Say you have a debt of $6000 on a credit card with 17%APR.