How to Make an Interest-Free Balance Transfer

Utilizing an interest rate balance transfer can be a very wise financial decision when dealing with your credit card debt. Credit cards regularly offer interest-free promotions as a way to gain customers, and you can take advantage of them. Here are the basics of how to make an interest-free balance transfer successfully.

Finding a Card

You will first need to start out by locating a credit card for this process. You will not be able to sign up for just any credit card for this process to work. You need to locate a credit card that has a 0 percent introductory interest rate attached. Credit cards regularly offer these rates for anywhere from 12 months to 18 months. They do this in order to get new customers to transfer their debt over to them. They are hoping that the individuals do not pay off their balances before the promotional period is up and they can start charging interest. There are a number of different credit card comparison websites out there that you can use to find a card that has the best terms for you.

Apply for the Card

Once you have located a credit card with favorable terms, you will need to apply for the card. Most of the time, you will be able to apply straight from the company website. You will provide them with some basic personal information as well as financial information. They will then look at your credit report and determine if you are a good candidate for a card. If you are approved, they will send you your card and important information about it within a few days.

Balance Transfer

Once you receive your new credit card, you will be able to initiate the process of transferring your balances over to it. There are a few different ways that you will be able to make this transfer. Typically, whenever you receive your information with your credit card, they will provide you with a phone number to call to make balance transfers. You can call and tell them that you want to make a balance transfer from another credit card. They will ask you the information about the other card, including the card number, expiration date and name of the account holder. They will then contact the other credit card company for you and initiate the balance transfer process.

Sometimes, credit card companies will provide you with a small book of checks that you can use to transfer balances as well. In this case, you will simply write a check for the balance that you want to transfer and then send it to your old credit card company.

Payoff Plan

You will then need to devise a plan that will allow you to pay off your credit card balance. You need to figure out how much money you need to pay each month in order to retire the balance before the introductory period expires.

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