redit Card Balance Transfer is a process where people can transfer their debt from high interest balance account to low interest balance account. The annual average interest rate is 16% on all the credit cards. But some card companies give an introductory offer of 0% interest or fixed low rate for duration of six months to one year. So people can transfer their high interest balance to a 0% or fixed low interest balance and reduce their card debts within the time frame of introductory offer. Thus it is the best way to reduce or pay off your card debts.

Balance transfer is a way of alluring the new or on going customers used by the new credit card companies. They give an introductory offer of 0% interest or fixed low rate to attract the customers, so that they switch to new creditors and consolidate their bills under one card. However, the lower interest rate is beneficial for the customers as it makes the outstanding balance affordable to pay off.

Steps to Apply for Credit Card Balance Transfer:

Credit card balance transfer is quiet easy and a fast process if you can follow a few guidelines. Here are some steps that will help you get your card balance transferred.

1. Contact a few major card companies and ask them to provide a 0% APR for a specified period of time.

2. Visit the website of various credit card companies and compare their offer in order to obtain the lowest and the best interest rate. If you have a good credit rating then you are in better position to negotiate for the 0% interest rate.

3. If you are eligible for a new card account then you have to fill up an application form and send it to the card company. Opt for online application process as it is faster in compare to the mail-in process.

4. Review your card statement thoroughly and make sure that the appropriate amount of money is transferred to your new credit card account.

Benefits of Card Balance Transfers for Consumers:

There are some benefits that people enjoy by transferring their card balance from the current company to a new provider, since the latter offers a low introductory interest rate on balance transfers.

1. Credit card balance transfer is one of the fastest ways to clear the card debts, since the new provider offers a low rate of interest for six months or one year. So people can clear their debts at negligible rate of interest within a specified time.

2. The annual average interest rate on all credits cards is 16%, but some credit card companies give an introductory offer of fixed low interest rate. So if you qualify for a lower interest rate than your current interest, then you can transfer your balance and save a good amount of money within the time frame of introductory offer.

3. Along with the benefits of paying off the debts faster and the lower interest rate, you can also enjoy the benefit of improving your credit card score by transferring the card balance.

4. If you are not willing to change the card provider but need a lower interest rate then negotiate with the current credit card provider by threatening the fact of transferring the card balance. Current credit card provider might consider your case, since they do not want to loose their prevalent customers.