Balance Transfer

A balance transfer is a financial tool which can be used to move a debt that is owed or a bill that is due or it can also alter the repayment tools on a financial instrument such as a loan like a mortgage or a high interest rate credit card balance. A balance must have be incurred or accrued either through consumer spending or through a loan process like a mortgage or educational loan. Once the balance has been created a person may want to transfer that balance for many reasons.

Why do a balance transfer?

• High interest on the original account
• Longer repayment terms on the new balance
• Lower interest rate on the new balance
• Reward incentives on the new balance

Getting more information on any money transaction makes economic sense.  It is a good idea to get an idea of the terms of any potential balance transfer and put the numbers in a balance transfer calculator to get the best deal, with the longest terms, with the lowest rate balance transfer.

While a low interest rate and a long repayment term are sought after terms for a balance transfer be sure to read the fine print and be aware of balance transfer fees.  A balance transfer fee is commonly charged on most balance transfers and is basically a charge that will be added to the new balance as a cost of completing the balance transfers.  Some credit cards offer deals with no balance transfer fees or low balance transfer fees.

When doing a balance transfer it is very important to get a low interest rate to save the most money.  Many credit card companies and banks offer special rate balance transfers.  What are good interest rates for balance transfers?

• 0% balance transfer
• 1% balance transfer
• 2% balance tranfers