What are the advantages and disadvantages of the transfer of immediate balance?
Immediate balance transfers allow the person to transfer debt, usually a credit card debt, from one creditor to another. While many people consider transfers of immediate balance as completely positive, there are advantages and disadvantages that use this option. On the page for, a person who decides to immediately transfer the balance can obtain a significantly lower interest rate on the money he owes, enjoy small credit support and have more credit. Regarding disadvantages, a person who decides to transfer an immediate balance can cause the balance charges and get less than the optimal interest rate if he / she lacks payment. In addition, if he buys using a credit card from which he transferred the balance, he can even end up with a larger debt.
In many cases, the transfer of the immediate balance is beneficial for the account holder by allowing him to repay his debt faster and at a lower interest rate. For example, a person may have a difficult time to repay the credit card debt its current interest rate. ANDwould pay off faster, accept the immediate transfer of the balance from another creditor. This creditor can offer the account holder a very low interest rate or even interest on zero process. With low or no interest on paying, the account owner can pay the principal for his debt faster and eliminate the debt earlier.
The individual who receives the transfer of the immediate balance can also benefit from an additional loan that it can obtain from the transfer. In some cases, a new credit card company will give him credit over the amount he transferred. In addition, the individual can keep his original account open and also have this credit. Some people can use credit on the original card to take care of expenditure or even on holiday. Creating new fees on the original credit card can only benefit an account account if it can pay them before it is created.
usually the disadvantages of immediate balance of balance include the cost of transfers and the potential of loss of the initial interest rate. For example, some credit card companies charge transfer fees. If the account holder misses the payment, he may also lose the initial rate and must pay less than the optimal interest on the debt transferred. In addition, if it brings additional fees on its original card, it may be even more difficult to pay off your debt.