If you are wondering what to do next with your credit card balance, then you might want to consider a 36 month balance transfer credit card. This is a great way to get lower interest rates and pay down your credit debt quickly. It's also easier than refinancing, as you don't have to cancel your credit card before the end of your introductory period. In fact, you can keep your card until the end of your fixed rate period. This article will help you understand how a balance transfer works and why it's a good idea for most people.
Balance transfers are becoming more popular because many credit card providers are offering them as part of a package. You usually have to pay a low introductory rate for a limited time, such as three months or twelve months. The promotional rate will remain in effect for the duration, so if you transfer your balances to another card at the end of the introductory period, you will still owe the same amount as you would have for the entire duration. If you choose not to transfer balances, you can stop paying any accumulated interest at that point. However, you may be charged a new, higher interest rate for the remaining period. If you transfer balances before the introductory period ends, you can stop paying interest altogether.
Balance transfers are easy to do with most credit cards. You simply find one that offers you a good introductory rate and transfer your balance to that account. Make sure you cancel your old credit card before you do this to avoid being charged an exorbitant reconnection fee. In fact, you will probably be charged less if you don't have an active balance on your new card. Some credit card companies offer special credit cards that include balance transfers, regardless of credit history.
There are a few things you need to know before you apply for a balance transfer credit card. To start, the card offers must be from a card issuing company that reports to at least one of the three major credit bureaus. These companies are Visa, MasterCard and Discovery.
The interest free period is usually for a month to month term. This means that during the entire month you do not pay any interest or charges. After the introductory period is ended, you will have to pay normal interest rates. The advantage of a credit card is that you can pay the entire balance each month and not just the minimum payment required each month.
However, if you are unable to make the payments each month, the credit card company will report your overdue purchases to the credit card agency. This will make it harder for you to acquire new credit. This is not the case with cash back credit cards. They are different because you do have to make monthly payments to ensure you are getting your money back.
It is possible to extend the period of time you are on the interest free period. Usually this is for a limited time only, such as a month or two. If you need the credit card for a longer period, you will have to pay an annual fee that is usually less than the fees and charges you would pay to extend the term. You should know that if you are able to extend the credit card term, you will also incur ongoing fees and charges. There is no way to avoid this so if you want to be successful in your efforts to reduce your debt, you will need to be careful with how long you are extending your credit card terms.
The best way to find out about credit cards and their features is to apply for a credit card. When you apply, you can transfer any balance of your credit cards into the new credit card account. The transfer will remain on your credit report until the date you signed the agreement on the new credit card. It will take a couple of weeks to a month and a half for the transfer to show up on your statement. Once it does, you can then start paying off your debt and getting your life back on track financially.