The new card should have a lower interest rate, typically offering a 0% interest promotional period.
These promotional periods can last anywhere between 9 and 21 months.
The major advantage of this method over a balance transfer is that they allow for larger lines of credit – as much as ,000 in some cases.
Also, because these are not revolving loans, one does not have to worry about "credit utilization" affecting their FICO score.
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Consumers burdened with credit card debt may be better off consolidating their outstanding balances with a single low-interest loan.
Due to this limitation, balance transfer cards are ideal for smaller debts, typically below ,000.
Before applying, you should be aware of what the new card’s ongoing APR will be once the promotional zero percent period runs out.