Cardholders may sometimes face one or more credit card debts that they are not able to pay at once. In this case, they may transfer the entire outstanding amount from all the credit card accounts to a single account. The balance transfer credit card that consolidates the outstanding amount usually charges a much lower interest rate as compared to the finance charges. Do note that certain card providers even offer 0% interest rate for a limited period.

To know more about how credit card balance transfers work, visit: https://cardinsider.bcz.com/2022/08/17/how-do-credit-card-balance-transfers-work/

Benefits of credit card balance transfer

Reduced Financial Strain – Balance transfer credit cards charge a significantly lower interest rate when compared to finance charges. Credit card finance charges (interest rates) are about 3.5% p.m. while the interest rate on a balance transfer is usually around 1.8% per month. Some card providers may also offer 0% interest rate. Lower interest rate means lower financial burden.

Stabilize Credit Score – Lowered interest rates will make it easier for the cardholders to make payment and hence stabilize their credit score. They can even improve it with timely payments.

Interest-Free Period – Credit card providers offer an interest-free period on new purchases post balance transfer as well. This way customer can make new purchases without incurring interest rate on it.

Other Benefits – Credit card providers sometimes offer teaser rates or other introductory offers to customers. These benefits may include longer interest-free periods, low interest rates, etc.

There are some fees and interest included in these services

Processing Fee – Customers will be charged a processing fee for a balance transfer that can range anywhere between 1% and 3%. Some banks may also charge a flat fee.

Interest Rate – The interest charged on Balance Transfer can be 0% for a certain period. But, the interest rate is usually around 0.75% and may go up to the particular credit card’s finance charge.

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Buy Now Pay Later Cards Vs Credit Cards: What’s the Difference?

In the past few years, we have seen banks, e-commerce companies and even fintech players offer schemes for shoppers called Buy Now, Pay Later (BNPL). The BNPL is a financing option that allows shoppers to make purchases and pay for them at a future date with an interest-free period.

So, how does buying something using a credit card differ from using the Buy Now, Pay Later Scheme?

To know about credit cards and BNPL cards, visit: Buy Now Pay Later Cards Vs Credit Cards: What’s the Difference? (easyfie.com)

What Is Buy Now, Pay Later?

Buy now, pay later is a type of short-term financing. BNPL plans often charge no interest and no fees, with the exception of late fees for missed payments.

How Credit Cards Differ

Credit cards can be used at retailers. But they can also be used to buy gasoline, make utility bill payments, and accommodate other kinds of expenses. If the cardholder pays their balance in full each month, they won't owe any interest. Otherwise, their balance will accrue interest at the card's annual percentage rate (APR).

Buy Now, Pay Later vs. Credit Cards: Which Is Better?

Buy now, pay later plans and credit cards are both options to consider when making purchases online or in stores. But each has some advantages and disadvantages.

Pros of Buy Now, Pay Later

• Convenience: You can apply online and be approved almost instantly
• Get approved without a hard credit check, which can lower your credit score

Credit Card Pros

• Can be used at a wider array of retailers and for other purposes
• Pay off purchases over time at your own pace, without fixed instalment payments
• Potential to earn cash back, miles, or points on purchases

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How to make travel creditcards work for you

You’ve probably heard of travel credit cards or travel rewards cards, but you may not be clear on how they work. These cards pay you points or miles for making both travel purchases and everyday purchases. Once you accumulate enough points or miles, you can redeem them for rewards like flights and hotel stays.

To know more about travel credit cards, visit https://www.launchora.com/story/1659695603-how-to-make-travel-credit-cards-work-for-you-0

If you travel often, one of these cards can be a smart financial tool. Are you thinking of applying for a travel credit card? Here are the basics of travel credit card rewards to get you started.

Many travel cards come with generous sign-up bonuses. These welcome offers usually require you to spend a certain amount within the first few months of opening the account. Although these bonuses are often an attractive incentive to apply for a card, make sure the spending requirement is realistic for your budget and travel plans.

Credit card fees don’t directly affect the rewards you earn, but the cost of the fees affects a card’s overall value to you. Take note of all the fees associated with any card you’re interested in getting.

Annual fees

Not all travel cards come with an annual fee, but those that do typically range from $95 to over $500. If you’re interested in a travel card that has an annual fee, be sure that the rewards and benefits will offset the cost.

Foreign transaction fees

Some credit cards charge a foreign transaction fee for overseas purchases. This fee is usually around 3 per cent of purchase, and you’ll pay this fee for every transaction. If you travel abroad frequently, you should consider getting a credit card with no foreign transaction fees.

It’s important to find the right travel card for your needs. For example, if you’re partial to a certain airline or hotel chain, a co-branded card can offer higher rewards rates, discounts and perks. Additionally, pay attention to a travel card’s rewards categories. For example, earning points or miles at restaurants won’t deliver a lot of value if you rarely dine out. But if you use services like Lyft or Uber a lot, you may want to look into a card that offers points or miles for rideshares.

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