Credit Balance Transfer - Welcome
Credit Balance Transfer dot com welcomes you to lower interest rates, better credit card deals, more cash in your pocket and faster debt clearance. Credit balance transfer helps people transfer their credit balance between credit cards. Here you’ll find the best Credit balance transfer rates available. You’ll also discover how a credit balance transfer from your existing credit cards can greatly reduce the amount of interest you pay.
You can find the best UK Credit Balance Transfer deals HERE.
You can find the best US Credit Balance Transfer deals HERE.
Credit Card Rates v Credit Balance Transfer Rates
Credit card rates vary depending upon many things. The type of credit card (classic, gold card, platinum card), the lender (Barclaycard, HSBC, MBNA) and to a certain degree your credit score all dictate what rate you have to pay.
However, as lenders compete to make money, they can offer excellent deals on Credit Balance Transfers from your existing credit cards to one of theirs. Credit balance transfer rates when compared to standard credit card rates are often considerably more favourable. This means that it makes sense to keep your eyes open for the latest credit balance transfer rates and to see how much money you could potentially save.
The average credit card rate is currently in the region of 16% although they can be as high as 65% or more! If you're unsure how percentages, APR's or credit balance transfers work you should look at our credit card 101 page.
Credit Balance Transfer - The Benefits
Credit balance transfer rates are ideally set at 0%. Even if you're currently on an average credit card rate like 16%APR and have a balance of £4,000 you could potentially save yourself almost £700 over the coming year through a 0% Credit Balance Transfer. Remember this works exactly the same for US dollars. If you chose to reinvest just the savings made from the Credit Balance Transfer over the year you could have reduced your debt from £4,000 to around £3,300. Making additional payments beyond the savings made through the Credit Balance Transfer would reduce the debt even further.
On a standard credit card interest rate (for example 16%APR) your debt increases each and every month. Sure you make payments and the amount seems to go down a little... but the interest is appled month after month pushing the debt back up. The longer it takes to clear the debt, the more you get charged. However, the beauty of a 0% Credit Balance Transfer is that for the given duration (hopefully 12 months or more) your debt is effectively frozen. So assuming you don't load your credit card with more purchases you have a window where you can take control and reduce your debt to a more manageable level.
Using a Credit Balance Transfer to help you pay off your debt is only part of the story. Your credit score is actually based in part upon the amount of debt you have. The credit score is calculated using what's known as a 'Debt to Limit Ratio'. We'll discuss this in more detail but for now let's just say that the less debt you have (compared to the credit limit you have available) the better your cedit score. In essence, the more you reduce your debt - the higher your credit score becomes. The good news is that the higher your credit score becomes the deals, APR's and credit limits you'll be offered will become more and more favourable.