| Balance Transfer Card in Canada |
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| Written by Peter James | |
| Wednesday, 26 July 2006 | |
Balance transfer card is a type of credit card in Canada that does not levy any
interest on the incoming balance transfers. Your choice of Canadian credit card
would depend on the size of balance transfer, length of interest free
period, interest rate of existing credit card, purchases made on credit
card and amount you are likely to pay each month.
Canadian Balance Transfer Credit CardsDo you have huge credit balances in your high interest rate credit card account? Are you still bearing the brunt of past financial crunches? Why not go for a balance transfer card in Canada? Canadian balance transfer cards are a type of credit card that does not levy any interest on the incoming balance transfers. This credit card normally has a reasonably high credit limit to accept all kinds of incoming balance transfers. If your are thinking of credit card debt consolidation, this is the card for you. Balance transfer card allows you to transfer your credit balance to the new credit card account without paying any balance transfer rates. Also, for the introductory period you do not have to pay any interest. This way you can save on huge amount, which you might have otherwise paid as credit card interest. One big advantage of balance transfer card is that, unlike the low interest credit card, it is available to any Canadians with social insurance number and a Canadian address. How does balance transfer card work?One you have applied for a balance transfer card and your application has been approved, your existing credit card balances can be instantly transferred to your new credit card account. You can also transfer the existing debts. If your outstanding account balance is habitually high and you want to escape high interest rates, you can apply for new balance transfer card after the introductory period gets over. The new card would have 0% balance transfer and the APR would remain low in the initial period. This leaves you with a chance to pay back your debt.There are various factors that determine which balance transfer card would work the best for you. These factors are assigned certain parameters. When you apply of a balance transfer card online, the websites offer an automated calculator, which works on these factors and lists the balance transfer cards that are good for you. The factors are: • The size of your balance transfer • The length of interest free period on your balance transfer • Interest rate of your existing credit card (of course you want lower than that) • Purchases made on your credit card • The amount you are likely to pay each month Balance Transfer Card: Word of CautionIn most of the balance transfer card deals you get a reduced APR only if you transfer the balance as soon as you apply for the new card. You must read between the lines. There are some offers that waive fees for "initial balance transfers" only. These are the transfers that are authorized when the customer accepts the card and completes the balance transfer form.Though most of the balance transfer cards offer 0% on purchases for introductory period, there are those that do not. In such a case you must remember that when you make any new purchases on your card, interest at standard gets accumulated. There are many cards that offer 0% balance transfer for the life of the balance. However, they also put in a minimum monthly spend clause. If you fail to suffice the minimum level, you have to pay the standard interest on everything. Balance transfer card allows you to transfer your credit balance to the new credit card account without paying any balance transfer rates. Summary: Canadian balance transfer card is a type of credit card in Canada that does not levy any interest on the incoming balance transfers. Your choice of Canadian credit card would depend on the size of balance transfer, length of interest free period, interest rate of existing credit card, purchases made on credit card and amount you are likely to pay each month |
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