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Credit card balance transfer is a
feature of almost all credit cards. Credit card balance
transfer allows it’s user to transfer unpaid credit card
balances from one or two or
more than two of his credit
card to another credit card in easy equal monthly
payments
at minimal interest rate. Credit card balance
transfer is like debit consolidation in a way that it
packs all other credit card bills into just one, but
this time in line of a credit card.
Consumer may avail of such advantage provided that
first, the person owns and uses
a credit card to which
the credit card balance would be transferred. Second,
the user is also the primary holder of the recipient
credit card account. Third, the person must be willing
to pay corresponding balance transfer interest rate.
Fourth, the person must transfer an amount greater or
equal the minimum required balance for the transfer and
less than or equal the credit card’s approved
installment limit. In most cases, the minimum balance
transfer amount requires is three thousand pesos. (Php3,
000.00). |
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Contrary to what most consumers think,
balance transfer does not convert all the cardholder’s
balance from another card into another existing card.
The amount of credit card balance that would be
transferred is always at the discretion of the credit
card user. The credit card balance
may be the whole unpaid balance from two credit
cards, half of them or even just the minimum amount
required. As stated, provided that it is between the
range of above minimum required or below the credit
installment limit. Fifth, the person must choose his/her
desired monthly terms, usually from 3,6,9,12 or up to 24
months.
Credit card balance transfer is one of the features of
credit card that mutually benefits the user and the
credit card issuer. Credit card balance transfer
effectively helps the issuer in paying unpaid or past
due credit card balances conveniently, hassle free,
through monthly installment terms. Credit card balance
transfer even reduces the interest fees and other
charges a credit card user will incur if paying on
regular terms.
If a credit card account holder has an unpaid balance of
ten thousand pesos, and pays only one thousand pesos per
month, imagine the cost on interest that single ten
thousand pesos will incur. The remaining nine thousand
pesos will be charged by interest normally at 3%. It can
be said that the credit card user only pays almost the
interest every month. Whereas in balance transfer, the
monthly interest rate normally starts
at .95% to about a little 1% depending on the term.
Imagine the savings and convenience one can get from
credit card balance transfer! On the part of the credit
card issuers, that are recipients of the transfer, they
gain interest income on balance transfer due to added
interest on monthly payment terms. On the part of the
source credit card issuer, the amount is deemed paid by
the credit card balance transfer recipient, therefore
reduce the risk in unpaid credit card balances.
Credit card balance transfer is definitely an
advantageous feature of credit cards!
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