Read on to find out more.
How To Use An American Express Balance Transfer Credit Card
How Do I Check My Credit Score?
As American Express requires a credit score of over 670 (a ‘good’ rating) to accept transfers, you’ll need to request some kind of credit report from a credit bureau if you’re currently unsure about what your rating is.
There are a few different credit monitoring services you might be able to find for free, but be wary of certain credit reporters that lower your score by doing this.
What Is A Balance Transfer Fee?
Balance transfer fees are the added charge attached to a transaction when sending money between accounts. This is normally a percentage of whatever the total amount you’re transferring is, but the total amount will depend on your current bank account’s terms and conditions.
Are There Any Other Balance Transfer Offers That Don't Charge Fees?
While there are a few different providers that don’t charge any balance transfer fees, American Express doesn’t join them in this list. In addition, those that don’t charge extra fees aren’t all rosy – they’ll typically have higher interest rates or shorter promotional periods.
What Are Promotional APR Periods?
Whenever you hear the term ‘0% APR period’, it essentially means that the credit card issuer doesn’t charge any interest rates on debt for a specific time period. Not every bank provides 0% specifically, but at the very least, it’ll be a rate that’s much lower than the typical interest rates you’d expect.
What Happens When The Promotional APR Period Ends?
Although you’ll enjoy all the benefits that come with 0%, or at least lower, interest rates, the honeymoon period has to stop at some point. Depending on the terms of the specific balance transfer card you’ve signed up for, you’ll be straight back to paying regular rates once this period ends.
How Can I Avoid Interest Charges On My Balance Transfer?
Interest charges are an inevitable part of all credit cards, but there are a few ways you might be able to alleviate them. For example, making payments on time and in full can be a great way of avoiding fees. Late payments can be a nightmare when trying to pay off your debt, so to avoid losing your promotional APR period, keep up with the terms they’ve set out prior to signing up.
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