Many consumers have heard the term “debt consolidation,” but not all of them truly understand the benefits of it and the versions of it. A consolidation is the merging of several accounts into one account. The main benefit of a consolidation is that the consumer only has to pay one monthly payment instead of various payments. A consolidation can increase a credit score and reduce clutter. Additionally, a consolidation save a person money. You can use a credit card to perform a consolidation if your credit is in the above average to excellent range. The following describes the process you would use to do such:
Search for the Right Card
The name of the type of credit card that you would need to perform a debt consolidation is a “balance transfer” card. The best way to narrow your selections down to balance transfer cards is to use a comparison tool to compare credit cards. A comparison tool is a handy site or application that allows you to view the features and benefits of several credit cards at one time. A comparison tool will give you a clear picture of the options you have for annual percentage rate, special benefits, balance limit and more. You will also have the opportunity to view consumer ratings and commentary. You should view consumer input very carefully, as it will make your experience safe and secure.
Find the Benefits You Need
You should take a moment to write down the options that you like to have in a credit card. With so many cards available, it would be quite easy for you to find a balance transfer card that has other options such as cash rewards or point rewards. You can also search for other benefits such as an eliminated annual fee. Some cards come with amazing features such as hotel discounts, rental car discounts, special club memberships, roadside assistance and more. You will research these elements during your quest for the perfect card.
Select a 0-Percent Interest Card
Many balance transfer credit cards have interest-free introductory periods that will save you a great deal of money (see UOB Credit Card in Malaysia). An interest-free introductory period is the credit card company’s way of thanking you for your business. You can use your comparison tool to find a card that offers 90 days, 12 months or 18 months of interest-free card usage. You can use this period to pay down your transferred debts without having to pay extra monies.
Once you have matched a credit card to your desires, you can complete an application. You may have the opportunity to receive an immediate decision from one of the top providers in the industry.