Credit Card Balance Transfer: Credit card balance transfer is a method by which you can transfer your outstanding balance to another credit card. Let us know its benefits
If you are also troubled by the high interest charged on credit cards, then credit card balance transfer is a good way for you. Under credit card balance transfer, you can transfer the outstanding balance of your credit card to another card. Its biggest disadvantage is that it involves transfer fees, but credit card balance transfer also has many benefits. Let us know.
Benefits of credit card balance transfer
The biggest advantage of credit card balance transfer is that you can transfer your outstanding balance to any such credit card. Where you have to pay less interest. Interest rates and penalties vary across cards. Because of this, you can make big savings by doing this.
Many people have more than one credit card. In such a situation, remembering everyone’s bill due date is not an easy task. In such a situation, you can consolidate all your debt at one place through balance transfer. This will also help you manage your debt. Your credit score will also improve as you will not miss any payment.
Through this, you can easily save money by paying less interest.
Disadvantages of credit card balance transfer
- One of the biggest disadvantages of credit card balance transfer is that you have to pay transfer fees.
- Your credit card utilization increases on credit card balance transfer. This directly affects your credit score.
- If you have only one credit card and you transfer the balance to a new credit card, it still has a negative impact on your credit score.
