What is a Super Balance Transfer?

A Super balance transfer is a banking transaction where your existing credit card debts are moved from your credit card to a new one.

This transaction allows you a huge chance at regaining control over your debts as you leverage the commonly offered new credit card holder privileges such as 0% interest period.

While most of the times companies require super balance transfer fees (4% of the amount for transfer) there are those that offer the transfer without any fees plus the expected 6 months (or so) 0% interest period.

How to Get the Most out of a Super Balance Transfer?

Here are the said simple things that will surely make you get the most out of your super balance transfer:

  1. Transfer money to your current account. Instead of cashing out the money from the new card, ask your new lender to simply move the money to your current account. Be careful not to use the new card for spending especially when you first purpose for the super balance transfer is not yet dealt with.
  2. Be sure to keep tabs on repayments. Remember that the main purpose of the transfer is so that you can keep your existing balance under your thumb. Make use of this chance by putting up a direct debit for automatic credit repayments per month. As much possible, try to pay beyond the minimum to get rid of the possibility of unwanted interests in a later time.
  3. Do your best to pay-off the “new” debt before the 0% interest period expires. The 0% interest period is basically the span of time where all that you will be paying to your new lender is the money you previously owed to your old credit card. That would be base amount without interest to be paid on top of it. Leverage this good and make it a goal to repay the “new” debt before whatever that is left unpaid starts incurring interest.
  4. Use the extra cash for huge purchases and to repay loans. If you are lucky to have a new credit card that has a limit that allows you “old” debts totally settled plus some credit cash left, spend the remaining portion of the limit on something that you have long been in need for. Better yet, use the cash to pay-off a loan. For the latter though, check if you will incur no penalties for the repayment of the loan.
  5. Stooze. Again this is best done with the extra portion of the credit limit within the 0% interest period. Cash out the portion of the limit and put it in your savings account. Get to your goal of beating the 0% period expiry and watch the cash in your savings account earn you savings interest.

A super balance transfer is already very likeable. However, when you consider the things that will allow you to get the best out of it, you are doing yourself so much more. The trick is simply to keep tabs of repayments and beating no-interest period expiry.

Written by www.money-meerkat.co.uk