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Free credit card balance transfer

Free credit card balance transfer - A free credit card balance transfer is a charge from one credit card (currently in use) to another. So, in paying the balance of your credit bill, you no longer pay it to the old bank, but to the new bank whose credit card you choose.

Free credit card balance transfer

Initially, the credit card used provided the satisfaction that had been sought, such as ease of transaction or practicality in use. It is understandable if you feel comfortable and used to the presence of a credit card. Because you feel pampered with the function of the credit card itself. If you want to pay for groceries, just swipe a credit card. If you want to shop online, you just need to enter an authorization code and the item is ready to ship.

Unfortunately, benefits such as free annual fees (first year) or 0% interest are only temporary. After that, you will be charged which is no longer free. Not to mention additional costs if you are late paying installments (late penalties) or making cash withdrawals. Over time you will start to feel heavy in paying these costs.

When you are thinking about how to reduce the burden of using a credit card, credit card offers from other banks come by email. Check for a while and it turns out that the offer is more attractive than the credit card you are using now. For example, the interest charged is lower than your current credit card interest. Plus the annual fee is free forever. Then, the late fee is relatively small.

You are also interested and want to get the credit card. However, do you remember if your credit card swells and has not been paid off, how do you get a new credit card? Don't worry, you can have a new credit card. Currently, almost all banks include a balance transfer feature as a credit card facility. Don't know what a balance transfer is? For more details, you can find out from the description below.

To illustrate how this works, imagine that you pile up a bill on your credit card that pays 10% interest. You find a profitable credit card then make a balance transfer.

If the new credit card offers 0% interest for a period of 6 months, you only pay the previous credit card bill with 0% interest or no interest. Of course this is profitable if you manage to pay off the bill within 6 months. In other words, you are not charged interest on the new credit card as repayment.

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What Customers Need to Notice about Free credit card balance transfers?

From the explanation above, you may have started to understand about balance transfers and their benefits. Yes, as one of them said, you can pay off your old credit card bill without having to pay interest (provided the new credit card offers 0% interest on initial use).

So, what do customers need to pay attention to before deciding on a balance transfer? There are a few things to keep in mind in order for you to really benefit from free balance transfers.

1. Balance Transfer Fee

There is a fee when you make a balance transfer. This fee is intended as an administrative fee. depending on the provisions of the credit card issuing bank.

2. Amount of Interest

Each bank offers attractive interest rates which are usually up to 0%. And usually 0% interest is given as a promo from the bank concerned. However, the interest promo has a certain period of time, around 3-6 months. After that, you are charged normal interest. This is what you need to pay attention to. Choose a credit card whose normal interest is lower than the previous credit card.

3. Maximum Balance Transfer Amount

This is what you need to know first, it turns out that balance transfers have a limit. You can transfer a maximum balance of 60-90% of the credit limit approved by the bank. For example, the Bank Y credit card that you choose as a balance transfer destination sets a limit of IDR 10 million and the maximum balance transfer amount is 80%. From there, it can be seen that the amount of credit transfer that can be done is Rp. 8 million.

4. Penalty Fee For Early Payment

Be careful and do not intend to pay off the credit card bill sooner than the agreed time. Because banks impose fines for those whose bills are paid off prematurely. But if you suddenly intend to pay off before the agreed time, be sure to find out in advance how much the fine will be imposed.

5. Always Pay Full Credit Card Bills

For this one, do not let you neglect. If you pay late or pay less than you should, the bank will forfeit normal interest.

6. Complete the Requirements

The method is not complicated and easy, you only need to prepare: bank credit card identification, and other bank credit card bills for the last month.

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Things to consider before making a free balance transfer

From the explanation above, you may begin to know what needs to be observed. Yes, things like free balance transfer fees, interest rates, maximum balance transfer amount, and so on, are the first things you should pay attention to. Beyond that, you need to pay attention and know the reputation of the bank you will choose the credit card for as a balance transfer destination. Then add the experience of customers who have undergone a balance transfer at the bank of your choice. By paying attention and considering the things above, you will experience the true benefits of free transfers.