Many people receive balance transfer offers from their credit card companies. However, many people don’t actually understand what the process is. In fact, most people are still unsure about how a balance transfer can benefit them. If you have taken out debt on a credit card that offers a high interest rate, a credit card debt transfer might be just what you need in order to save money. Apart from that, another major benefit that you get with a balance transfer is that all of your payments will be consolidated into one, thus making it easy for you to pay off the loan without much hassle.
For instance, if you have a higher balance on a credit card that offers 21% APR, you might have the option of transferring that debt to a credit card that offers a lower rate during its introductory phase. This will help you pay off your debts faster since you won’t have to worry about exorbitant interest rates.
Understanding the Balance Transfer Process
Balance transfer in Malaysia is offered by several banks and credit card companies. A balance transfer is when a payment is made for a particular credit card by transferring the loans to another. In certain situations, you might have to pay a small fee in order to complete the balance transfer.
Keep in mind that the amount of money you can transfer is only as high as your credit limit. So, if you want to transfer $6000, but your credit limit is $5,000, you will only be able to transfer $5,000. This also includes any balance transfer fee that will be charged on top.
How to Complete a Balance Transfer
Before you can initiate a balance transfer, it’s important that you first visit your bank’s website and see if the option is available. Most banks have a separate page for information about this. When you file a request, the bank will ask for information about who you want to transfer the money to, the amount you want to transfer, as well as the account details. Once the balance transfer has been approved, the credit card company will contact your creditors and any billed parties, and will pay off the amount. The entire process for making these payments can take around two weeks.
Primarily, the main reason why people get balance transfers done is because it makes it easy for individuals to catch up on their existing debt. On top of that, you don’t have to worry about making payments to multiple creditors and billers. Instead, the company will do that for you, so your only concern is making a single payment each month.