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All about balance transfer
Under the burden of soaring credit card debt, it may be a wise move to start a new credit card, strange as it may sound. The reason behind it, is credit card balance transfer usually available to all with a mailbox and social security number.
Credit card companies try to rope in new consumers by luring them with free balance transfer from an old credit card. A grace period is fixed with significantly reduced charges for the transfer. The typical duration of the period is six months to a year following the transfer.
For the smart consumer this is a great opportunity to be free to pay down a credit card balance minus the interest charges. First he opens a new account for balance transfer on expiry of the old one. Then again, he transfers all the balance to a new card with a new grace period and low charges, if any. However without closing old accounts, it is not advisable to operate more than two credit card accounts as credit scores can be adversely affected. Credit card info.com reports:
Opening a new credit card may seem like the last smart thing to do when faced with mounting credit card debt. In one case, however, this may make sense and wind up saving you a lot of money as well. This special exception is a credit card balance transfer, and is oftentimes available to anyone with a mailbox and social security number.
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