Can someone explain how credit card balance transfers work? Ta very muchly!!?

Answer 1

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Answer 2

This Site Might Help You.

RE:
Can someone explain how credit card balance transfers work? Ta very muchly!!?

Answer 3

Be wary of cards that only do free interest on balance only - -but not on puchases - this is a bit of a con as if you purchase anything you pay interest on this amount -which can build up with further purchases until the initial balance that you transferred over has been cleared off.

Try get one that does both purchases and balances - can ususally get 6 months on both - and there is the odd one that gives you 9 months. Some also give you special rates for life until balance paid off

I once fell for this. Theres plenty of places on the internet that give you a comparison of different credit cards and special offers they are currently doing -the following link isn't too bad http://www.fool.co.uk/credit-cards

Answer 4

They don't work very well unless you transfer everything you owe from a high interest rate card onto a low interest rate card and then CLOSE the high card account!! That's the crucial point....the idea is to get a lower interest rate so some day you can pay off your debt but if you keep the higher rate account open the temptation to use it is strong and you probably would and then you'd have just defeated the purpose of the transfer and increased your debt again and monthly payments.

Answer 5

Several aspects (pros and cons).
#1. Transferring one balance to another shows that the first balance was paid off in one chunk. Great for the credit report. They don't know "how" the balance was paid off. They just note that the balance was paid off entirely on 'this date'.
#2. Generally, you would transfer a balance with a high interest rate to a credit card with lower interest rate. In the long run, this benefits the accruing interest fees.
#3. Usually, people transfer accounts to credit cards with 0% introductionary transfer rates. This allows you to basically have nothing accrued for interest rates for that time period. You save, let's say, 6 months worth of interest fees.

Answer 6

Credit card makes a transaction with your previous CC company and pays the balance. This transaction is charged on your new credit card at the rate specified in the terms.

You're pretty much buying your debt. But hopefully at a lower interest rate so you can pay it off quicker.

Answer 7

you use a credit card with no purchases on it to pay off your other cards or cards. make sure first that the card you are transferring to offers a low rate with no charge for doing the transfer. the credit card sends the other cards a payment to clear them, you should then close the other card. the card you have transferred to should not be used for other purchases then everything will be at a low interest rate.

Answer 8

You are transferring debt from one card to another, and you should only do this if the new card has a lower interest rate.

Do not be persuaded by special offers, look at the 'nuts and bolts' of the detail.

Answer 9

They transfer your debt from one card to the next, often charge you to do so, then start interest on it immediately. Unless your previous card has a really unfair interest rate, it is not a good idea to do this. If you are considering doing one still, read the fine print CAREFULLY because this is one of the big ways credit cards screw you.

Answer 10

Your visa pays your mastercard and hopefully you will have a lower interest rate or you would be very stupid for doing a balance transfer to a card with a higher interest rate.

Answer 11

When I did it I got a form with the new card. I filled in the details and handed it in and the next statement from the original card showed I had made a £2,000 payment.