Credit Card Balance Transfer
Things you'll need:
- credit card with high interest rate
- credit card with zero percent interest or a very low rate
- creditcards.com
Instructions:
1.Check the balance on your current credit card and the interest rate you are paying. If you have high interest rate and a high balance, consider doing a balance transfer
2.Visit www.creditcards.com and search for low interest or zero interest credit cards on purchases and balance transfers. The zero interest rate credits have a promotion of 6 to 12 months. Apply for one of these cards. The most common credit cards offering a promotional zero interest rate are from Citibank. During credit card application, beware of the interest rate on the card after the promotion period ends.
3.Once you receive the new credit card, call customer service and request a balance transfer. They company might charge you a 3% fee for the transfer. The company then mails you a check and you cash it and pay off your high interest credit card. You can also request for a balance transfer online. All you need to do is sign up for an online account with the new credit card company. Request a direct credit transfer from new credit card to your credit old card
4.Make a plan of paying off the new credit card with zero percent interest or low rate within 6 months to one year. Pay more than minimum amount. You would be saving a lot of money because no interest is being charged on your payments for 6-12months.
Tips & Warnings
- Credit card balance transfer can enable you to get out of credit card debt but you have to be very smart on how you do this. The key is to being able to pay all or some of the bed within the period you are not being charged interest.
- Visit Resources section (below) for more information
- Do not close the credit card with high interest rate especially if you have had it for a while. You might be tempted to close it after you doing a credit card balance transfer but this will only lower your credit score
Published by Esther Sherry, R.N.,B.S.
Esther Sherry is a registered nurse with extensive experience in health and wellness. She holds a B.S in nursing, B.A in psychology and has worked for more than five years in the healthcare field. She enjoys... View profile
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