Quick Guide to Balance Transfer Credit Cards

What are Balance Transfer Credit Cards?

Balance Transfer Credit Cards allow individuals in possession of them to undertake what is known as a ‘balance transfer’ with regard to a preexisting, outstanding credit card balance. A balance transfer involves the movement of a balance incurred on one credit card onto a new credit card.

Through the undertaking of a balance transfer, the balance – ranging from a portion to the entirety of the preexisting balance – will be transferred to the new credit card. However, while Balance Transfer Credit Cards prove to be valuable and economical instruments for certain individuals, associated rates, interest, and charges should be investigated prior to engaging in balance transfers.

Standards and Practices of Credit Terms Specific to Balance Transfer Credit Cards

In most cases, the following standards and practices are specific to Balance Transfer Credit Cards:

Many Balance Transfer Credit Cards allow for a ‘0% Annual Percentage Rate (APR)’ upon the approval for the receipt of these types of credit cards. However, the absence of an interest rate exists on a temporary basis. Periods of 0% APR will range from 6 months to a year.

Balance Transfer Credit Cards allow for these ‘grace periods’ in order to allow the individual a finite period of time to enact repayment without the threat of additional interest. However, subsequent to the termination of the grace period, applicable interest and APR are enacted.

Although Balance Transfer Credit Cards may offer the absence of interest for a finite period of time, prompt, scheduled payments are required within the grace period. In the event that a payment is late or not furnished, many credit institutions will terminate the grace period. This results in the reinstatement of applicable interest rates.

Balance Transfer Credit Cards: Profile and Background

The following details are inherent within the financial structure and legal ideology of Balance Transfer Credit Cards:

Balance Transfer Credit Card Credit APR and Spending Limits

The credit limit typically applicable to Balance Transfer Credit Cards may vary in accordance to the predetermined amounts offered by the credit institution upon approval. Credit limits and histories are typically directly proportional with the interest offered. Individuals with higher credit scores are more apt to receive lower interest rates and higher credit limits.

Balance Transfer Credit Cards Legality

Balance Transfer Credit Cards will typically fall under the jurisdictions of both Finance Law and Commercial Law.

Finance Law is the legal specialty regulating and overseeing legislation applicable to the exchange and the circulation of monies. This takes place in both transfer activity undertaken involving hard currency, as well as Balance Transfer Credit Cards.

Commercial Law is the legal field that enacts the regulatory oversight of standards and practices occurring within the commercial marketplace.

Contingency Plans in the Event a Rejected Balance Transfer Credit Cards Application

In the event that your application for the receipt of a Balance Transfer Credit Cards has been rejected, additional options may exist for your consideration. You are encouraged to investigate the following options, which may provide assistance with regard to both the receipt of a credit card in addition to measures undertaken in order to improve your respective credit score.

Individuals interested in applying for credit cards are encouraged to contact legal and financial professionals in order to better understand both the risks and ramifications implicit within any nature of credit cards.

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