Balance transfer credit cards allow you to transfer your existing balance on another card to a new card. This helps you to postpone the payment on your card and maintain your credit rating. Banks are willing to offer you a balance transfer card as they are keen to take you as a customer.
Usually, credit card balance transfers attract a higher APR than cash advances and purchases. This is because balances are overdue credits. However, in order to attract you, they will offer an introductory period where they will charge you an APR of 0% on balance transfers.
All the above are 0% balance transfer cards. If you want to transfer your balance from one credit card to another, you must see that the new card has a higher credit limit than the amount you are transferring. Another condition is that you can only transfer up to a maximum of 80% of the credit limit. For instance, if you want to transfer $8,000 then you must select a card with a credit limit of at least $10,000.
How To Choose a Balance Transfer Card
Choose balance transfer cards which gives you a long introductory period with 0% APR, preferably with minimum transfer fee.Select the card that offers the best terms and apply for it online. It might take a couple of weeks for the application to be processed. So you must keep paying the minimum due amount on your existing card till you get the new card.
One point you need to remember is that frequent balance transfers might decrease your credit score.