Do you have outstanding charges on existing store or credit cards? Perhaps you’re struggling to pay your monthly bills? Whatever the case, it might be worth moving all your debt onto a credit card with a lower interest rate. This is known as a balance transfer and could save you a lot of money in the long run – so let’s take a close look at the benefits:
You’ll receive one manageable bill
If you’re struggling to manage your outgoings, making a balance transfer could be the right way to go. Why? Well because you will only receive one regular credit card statement and won’t have to worry about multiple payments. Not only will this help you take stock of your debt, but it could reduce the risk of your falling into arrears on a regular basis and this could improve your credit rating. According to a report by the BBC, no one has an automatic right to credit, so it’s important maintain a reputable credit file to satisfy future lenders.
You could clear your debts faster
Did you know that you could be paying more interest that you need to? That’s right; many store or credit cards have high charges, so it’s wise to look for a balance transfer credit card with a lower interest rate. Many banking groups also offer promotional discounts such as 0 per cent on purchases or balance transfers for a set period of time, so it’s worth looking around. The less additional costs you have to face, the quicker you will clear your debts with regular monthly payments.
You could benefit from online card services
Nowadays, many credit cards come with free online card services as standard. These allow you to check your balance, make transactions, set up direct debits and view your statements (without popping into the bank) and ensure money management is as simple as possible. With most cards, you’ll also benefit from fraud protection and will not be liable for fraudulent transactions online or on the high street, providing you notify your provider of anything unusual.
You can earn rewards points.
Believe it or not, you can now make a balance transfer onto a rewards credit card. This means you can consolidate your debt, while earning reward points – helping your money go further. With a football credit card, for instance, you will have access to a wide range of footballing offers and discounts and can redeem your points against quality merchandise.
If you a looking to improve your finances throughout 2012, a balance transfer credit card could be just what you need.