If your credit score is poor, it is going to be tough to get approved for a balance transfer card because the lowest requirement is that you must have an average credit. Average credit is in between 600 – 679 and poor credit is lower than 600. With an average credit score, you likely won’t qualify for the zero percent introductory offers even though the interest you get will be lower than usual interest rate. To get the 0% introductory rate for balance transfer, you need to have at least a good or excellent credit rating.
The solution is to improve your credit score to above 600 before submitting an application for the balance transfer card. The first step to improve your credit score is to request a free credit report from one of the 3 credit bureaus to see if there is any mistake record such as transactions that you don’t remember having spent money on, wrong account listed and inaccurate account information. Rectifying the error on your credit report can makes a difference in your credit score. The credit bureau can quickly help you to rectify the error once you have informed them.
One way to build your credit score is to apply for a secured card. You only have to come up to at least $200 for the collateral to apply for the secured credit card. Once you apply for a secured card, you must use it to buy something every day. You must note down the due date and remember to clear the balance when the due date arrive. If you continue to make on time repayment on your secured credit card for at least 6 months, you will see an increase in the credit score.
When you have attained at least a good credit score, you can use the online comparison search engine to find a suitable 0% balance transfer card. Even though it has 0% interest, the card may still charge you a balance transfer fee. The balance transfer fee is usually 3% but it can be more. Sometimes, the card will require you to transfer the balance within a certain amount of period in order to be eligible for the zero percent interest. It is your responsibility to check out all these details prior to applying for a balance transfer credit card. When you get approved for the card, you can have your balance transferred by calling the customer service behind your card or transfer it online through your online banking account.
You can transfer balances from all kinds of credit cards onto a balance transfer cards such as gas, and store credit cards. You must remember that the introductory rate is not long lasting and only last temporarily for a limited time period of 6 – 21 months. Therefore, you must create your budget plan accordingly and make sure that you have already fully repay the balance on your balance transfer card by the time the introductory offer expire.