Information on Balance Transfer APR Schemes

2007-03-08 10:33:40

( Financial )



Credit and Debit cards are becoming increasingly popular. Balance Transfer APR schemes are primarily linked with credit cards. Credit cards are now the biggest in the market. There are thousands of credit cards sold throughout the day.

However, balance transfer APR schemes are linked with the percentage of interest of the particular cash card. There are many credit cards that show zero percentage interest to attract the buyers in buying the card.

E-commerce and other facilities that provide a means to purchase products and services on line require plastic money. In this modern world, almost everything is dependant on plastic money. All marketing systems of goods and services are made convenient for the consumers by enabling them to use their cards for any kind of purchase. The sheer convenience of shopping with cards is also making it very popular.

However, this has negative and positive effects. One such positive effect is having an easier life. The negative aspect, on the other hand, is getting deep in debt.

Banks have a collaboration system to work with each other to provide cards. To attract users of other cards, card companies offer to take over the balance due to others. This is often done under zero APR, where APR means annual percentage rate. This is also referred to as balance transfer APR schemes.

Zero interest balance transfer thus involves taking over the liability due to other card companies. There are also low interest balance transfer facilities, which give the benefit of interest rates lower than what is being paid before the liability is transferred.

After the balance is transferred, the borrower is given the capability of repaying at a particular period. This benefits the borrower by making the person save on high interest rates. The card company then gets a new customer who is a big spender.

In addition, the cardholder has the benefit of planning his finances. Card companies thrive on easy credit and convenience, and their performance is measured in terms of the number of cards added per period. This necessitates fierce competition.


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