Balance transfer without fee
Earlier, more than a dozen cards offered balance transfer deal. Subsequently, only two companies have come forward and offered the deal. Now, few credit card companies offer only three credit cards for the deal. However, finding the deal offered by credit card companies is not an easy task unlike yester years.
Initially, credit card companies charge 3% for balance transfer up to seventy five dollars of each transfer. But, some of the companies may differ with deals and fee. Only average balance transfer card is considered for explaining the deal to the unfamiliar users. Given below are three costliest balance transfer occasions for illustration.
1.Situation: To begin with, a user has three credit cards each with a balance of twenty five hundred dollars. Balance transfer @ 3% will cost seventy five dollars for three cards and bring down total fee to two hundred twenty five dollars. This is less than the interest you approximately one thousand or more than that.
2. Situation: Two credit cards in the situation, one with a balance of five thousand dollars and another with twenty five hundred dollars. Each balance transfer of seventy five dollars @3% will cost one hundred fifty dollars for total balance transfer expense. This situation is slightly better than the first situation but loss of overall saving.
3. Situation: A credit card with a balance of seventy five hundred dollars. Total fee will be only seventy five dollars because of maximum limit. This may help for reasonable saving. Instead, it is advisable to avoid fee altogether.
In order to avoid seventy five dollars to two hundred twenty five dollars in the form of balance transfer fee , find a credit card which offers zero percent interest and balance transfer without fee. The title itself explains the intricacies of fee attached as balance transfers fee is more annoying for the users.
You may realize that these offers from credit cards provide zero percent interest rate on the transfer but not on the purchases. Make sure that balance transfer occurs only as and when you apply. Do not hastily pay off your credit card since you are not paying interest for the whole year. Save this money and in a better yield saving account and earn interest and wait till the zero percent rate expiry. With zero percent balance transfer, you can not only save few hundreds or few thousands bu also earn four to five percent interest on your saving, meanwhile. These points may be kept in mind as you think of balance transfer concept on your credit cards. A bit of analysis and sound knowledge of observing the fee charged on the credit cards will help you a long way while dealing with balance transfer.
More information and facts on the subject of no annal fee credit cards or apr credit card
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