Credit Card Balance Transfer Loans
A debtor who has several credit cards may be interested in receiving credit card balance transfer loans. Balance transfer loans are advances that are integrated into certain credit cards. The special advances allow a debtor to carry balances from other credit cards onto the new card. Consumers can sometimes eliminate high interest debt by taking advantage of balance transfer loans.
Cards with the balance transfer option are usually available to consumers of varying credit classes. The applicants do not have to have excellent credit. However, most lenders require their applicants to have at least good credit.
Credit Card Balance Transfer Loans vs. Personal Loans
Credit card balance transfer loans vary from other types of loans in several ways. They are different from personal advances because they only allow for the transference of credit card balances. A consumer can use personal loans for any purpose, including paying credit card debt. Although in some instances, credit card companies can offer you personal checks or the ability to sign the check to yourself with the same 0% APR terms.
A balance transfer loan usually offers a period in which the customer does not have to pay any interest rate. A consumer can take advantage of the introductory period and make significant payments on the account. Personal advances usually do not come with this amazing introductory period. However, a personal loan can sometimes be a low fixed rate loan.
Consolidation Loans
Another type of loan that a debtor may request to help with credit card debt is a consolidation loan. A consolidation loan is different from a credit card balance transfer loan in size, interest rate, and terms. A person can use a consolidation loan to pay for any credit item such as mortgage, auto loan, credit card, personal loan, short-term loan, student loan, and the like. Consolidation loans generally have excellent interest rates. However, the interest rates for these types of an advances are usually not as good as the 0 percent introductory rate of many balance transfer loans.
Things to Watch for With Credit Card Balance Transfer Loans
Balance transfer loans can be tricky if the consumer is not careful and he or she does not ask questions. Some balance transfer cards have handling fees. A handle fee or a balance transfer fee is a charge that some lenders incorporate for processing the transfer. This fee can come as quite a surprise to a person who thinks that he or she will not have to pay extra money. The best way to avoid such a surprise is to read terms very carefully and ask questions before signing a credit card agreement.
Debtors should also watch out for the end of the zero percent introductory period. This period can last from 90 days to 18 months. The individual should use this time to make double payments to get the balance down as much as possible. The zero percent introductory period is one of the best benefits of having credit card balance transfer loans. Allowing it to go to waste is not productive.
To apply for credit card balance transfer loan, the debtor needs to complete an application online. Some lenders will give an immediate answer while other may take up to 30 days to respond.
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Finding The Right Creditors
Finding the right creditors can be very difficult for a consumer, especially when he or she has a less than perfect history. Some debtors may have old debts such as unresolved credit card bills. Other debtors may have something else on their records such as unpaid medical bills. Traditional lenders will often deny people in these situations for the approval of new financial products. Lenders often base loan approvals on a client’s previous history and credit score. Unpaid debts can work against the debtor by lowering his or her score. In order to improve one’s chances for approval, that person can try getting help as well as seeking out special creditors.
The Best Kind Of Creditors
Finding the right creditors is not a difficult task. It involves searching for lenders that will take a chance on the debtor. The best creditor is one that will also provide some kind of service that will help the debtor to get back on track financially. The extra service might be something like credit counseling, debt management, or consolidation. Lenders who provide this type of assistance genuinely care about their customers. They want to see those customers return to financial health and live stress free.
Information That Creditors Want
In order to make an application with lenders, the applicant will have to supply important information. The lender will want to see that person’s proof of income, monthly expenses, mortgage statement, and any other financial information. The lender will need to review the applicant’s complete financial profile to see where he or she needs help most. An individual with a generous amount of open accounts might be better off receiving a consolidation loan. Another client might benefit from credit counseling services so that he or she can begin to manage expenses better.
The right creditor is not just a lender who will hand out cash. The right creditor is not just an organization that will assess fees and not provide counsel. The right creditor is one that will help a debtor to alleviate old debts and avoid future problems. A good lender will help the client to sort out the mess so that he or she can see clearly to the path of financial responsibility.
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