A credit card balance transfer is a process used to transfer existing debt from a current credit card to a new credit card. The main objective is to help consumers achieve lower interest rates when paying off a debt. In effect, this helps consumers save money and shorten the duration of paying back the amount in balance.
Similar to regular credit card payments, a balance transfer entails that you must pay the balance in monthly payments within a time frame that is determined by you at the beginning of the process.
If you choose the right terms to pay off your debt, the total amount you need to pay under balance transfer can definitely be lower than the amount on your current credit card. Doing this allows you to free up your finances a bit more and give you space to make a proper budget plan.
Now, before you commit to thinking balance transfers are the next logical step in managing your finances, you must first determine if applying for a balance transfer is the right thing to do given your financial situation.
Transferring balances to only one low-interest credit card can make getting rid of debt a lot easier. For example, if you’re struggling to keep track of the various payment schedules and often find yourself charged for late payments, then applying for a balance transfer might be wise. Consolidating can simplify your payments by keeping track of only one card and one monthly payment.
A balance transfer simply means that your new credit card issuer agrees to pay the debt obligation you have with the original lender on your behalf. The balance is then transferred to your new credit card – only this time with a lower interest rate.
When applying for a balance transfer, you can visit the Security Bank Balance Transfer page and fill-out the online form. All you have to do is provide information on your current Security Bank credit card, enter the card details of your non-Security Bank card, and select your preferred balance transfer term. Balance transfer terms can range from 3 to 24 months, with interest rates as low as 1.91%.