Today we will be covering the benefits of balance transfers. Are they good and should you take advantage of the offer? There are a couple of things we at MSI Credit Solutions advise our clients to consider before making the decision to transfer a balance.
The first thing to understand is that essentially when transferring a balance you are paying one credit card with another. So with this in mind, the best situation in which to transfer a balance would be if you have a high interest credit card and are able to transfer to a lower interest credit card. This would save you money in the long run. We definitely wouldn’t suggest you transfer balances to a credit card with a higher interest as this would not be cost effective. Another benefit from transferring would be to simplify your finances and consolidate your debt all onto one card. This would simplify your payments avoiding any confusion with multiple accounts and avoiding possible late fees from missed payments.
Make sure to check into the stipulations of transferring balances as it is not as easy as it sounds. More than likely there may be a transfer fee that will apply and may be determined as a percentage of the total amount to be transferred. Also check to make sure the percentage rate that is being offered is locked in. In some instances you may need a longer time to pay off the debt and the low interest may only be offered for a limited time.
Overall Balance transfers are definitely a big help to pay off debt. This is of course if the interest rate is right and fees are not a ridiculous amount. As with any good thing too much of it can also be bad. Be sure to pace yourself on the amount of transfers you make as too much debt on a single account can also lower your scores.
MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.
*The information in this article has been provided strictly for educational purposes.