Balance Transfer for Credit Cards (1)
Balance Transfer is a useful and advanced feature for credit cards. For those who are short of money and want to cash out, this method can be used for a short period of time to set up a certain amount of cash available. You can even get an interest-free loan for more than 1 year when you choose the right credit card.
Fees for Balance Transfer
BT is not turned in vain, and BT generally comes with two fees: a fee of around 2-3% and interest after BT (APR). Fees are generally unavoidable, so we all offer 0APR at BT (credit card APRs are generally available in three types, APR, BT's APR, CA's APR). At this time, we're paying a 3% handling fee to get an interest-free loan. Our next article focuses on 0APR BT.
Balance Transfer's amount
Credit cards BT and Cash Advance (CA) are similar, with a fee and APR. However, CA's quota is generally small (one-fifth of the total), and BT's is often the same amount available as today's credit cards. So a $10k credit card may have a CA limit of $2k, but a $10k BT limit (some banks also have a higher limit for BT for a short period of time). If you need cash you should choose a CA and pay a credit card or other loan, choose BT.
Credit card-directed 0APR BT Offer
I believe that many people will receive some blank checks from credit card companies after a period of time, and At first I am not sure what these checks are for. A closer look reveals that these checks can be used to make BT. Typically with these Checks, there will be a 0APR BT offer from the bank. It's also easy to use, just fill in the amount you need BT and just deposit this Check in your check account. Of course, it's best to see the BT handling fee, typically around 2%-3%.
When to use these offers
If there is a 0APR offer, is it cost-effective to pay a 3% handling fee to BT? I think it's good to take advantage of these 0APR offers if you need a small loan and don't want to go the way you apply for it. If your 0APR offer lasts 18 months, it's a 3% fee, which equates to an average annual interest rate of only 2%, which is lower than many banks' loans. Of course, there's an extreme situation where the money you get from BT is used to invest in things with an annual interest rate greater than 5%, so it's good to play BT. Usually after you receive this offer, you can also find 0APR's offer by logging into your credit card account. So it can be done online.
In addition to generous card-opening rewards and regular cashback, obtaining available cash flow through Balance Transfer is also a way to play with cards. Of course, we should pay attention to avoid high fees, on time repayment is OK.
