A stress-free life equals happy life. What is the kind of stress triggers in your life? For starters, there is too much financial responsibility on your shoulder. Perhaps that could be the reason for your poor credit score. Yes, you made some naive financial decisions, but it DOES affect your future as well. You need to work towards getting a good credit score! There can be several barriers along the way – one of which is the hefty interest rate charged while making repayments. The question is – How to clear off the pending debt without being charged a whopping interest rate? A card with a 0% balance transfer fee is the answer to your question.
Take 10 minutes out of your busy life, and read this informative post on a 0% balance transfer credit card. We have covered all the essential aspects you need to be aware of, including its works, who can qualify, and whether it helps increase credit score.
What Is A 0% Balance Transfer Offer?
0 percent balance transfer or a no-fee balance credit card allows you to transfer the funds to a new card without charging a hefty fee.
When you transfer the current balance to a new card, it saves you from paying a high-interest rate. Some of these balance transfer fee cards offer 0 percent interest rates on the monthly repayments for a stipulated time frame.
These balance transfer credit cards are also used for transferring a loan debt to a particular credit card. This saves you from the hefty interest rates on the money you already owe to a specific company or entity.
We all know that making repayments is a mentally grueling task. Why should you pay the interest rates while making a debt repayment? You can save yourself from this extra cost by utilizing credit card balance transfer with 0% fee.
This is usually a promotional offer that lasts for a set period. Let’s say that you owe a more considerable debt of thousand dollars. The fee is charged on a % basis. In case it is a large amount you need to pay, the balance transfer credit card with a 0% fee will help you save money.
The best way you can use your 0 percent balance transfer credit card is to pay off the debt in the first twelve to eighteen months. The key is to use the card wisely and within the stipulated time frame. We will cover more of this in the last section. Before we jump to the improving credit score section, let’s take a look at how the balance transfer works.
How Does Balance Transfer Work?
If you wish to move the money you are obligated to pay on another credit card, you can use the balance transfer card like that does not charge a hefty interest rate. Please remember that you cannot pay off the debt of one credit card with another credit card. However, you CAN move a balance to a separate credit card with the use of balance transfer.
You can always compare balance transfer cards to get the best promotion. You may be saving hundreds of dollars here!
How does it work? Well, it is quite straightforward. For starters, you need to sign in to your no-fee balance transfer card account. Moving on, let the provider be aware of how much balance you wish to transfer and choose the card you wish to do it from.
This provider will send a request for transfer to your card provider. Note – there is a transfer limit here. It varies from one provider to another. You will have to check this before you make a request.
Who Is Eligible For A Balance Transfer Credit Card?
If you wish to indulge in a free money transfer credit card, get your hands on the 0% balance transfer fee card. This allows you to get rid of the interest fee while transferring the balance. One of the most asked questions is the following – who can qualify for it?
Now, it all depends on your credit history and current financial situation.
Patrons should remember that the 0% balance transfer card is a temporary offer. If used wisely, it can help you reap multiple benefits.
The promotional rate will stick on for a couple of months, and then you will be charged a standard variable rate.
Are you eligible for the same? Let’s find out!
When you pick a particular balance transfer deal, the first thing to do is to check the ‘eligibility.’
If your application has a denial, here are some of the reasons on the decision
- Poor credit history
- Transferring the balance to a wrong bank
- Submitting too many applications swiftly
- Cards are under two different names
Make sure you are paying off your credit card bills and other debt on a timely basis to avoid getting a poor credit score.
The credit score needed for balance transfer card is anything above 700. As per the big credit card bureaus, a good credit score in the U.S. is anything between the range – 700 to 749. Anything beyond that is excellent.
If it is below 549, your credit profile is very poor. So, your application to get the 0% balance transfer card will get rejected if the credit score is poor.
Does 0% Balance Transfer Help Increase Credit Score?
Remember that the 0% balance transfer fee is only applicable if you make timely payments. Moreover, understand that it is an introductory offer.
If you make a late payment or miss one, then they will suspend the introductory offer too.
By paying on time, you are also increasing your credit score. Who reaps the benefit? YOU!
Please be aware of the fact that a good credit score makes life easier. As a result, you gain access to easy loans, and credit card companies LOVE you for being a loyal and ardent customer.
The faster you pay your debts, the easier it is for you to move towards your credit score goal. Get your hands on the intro APR card, which helps you save most of the interest for a given time. Use this short period to clear off your debts quickly! This will help you achieve an excellent credit score in the long term.
Finally, Debt repayment has never been more manageable. Go ahead and check out our informative post on debt repayment plan – how you can systematically go about it.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates