How does a balance transfer work?
A balance transfer is where a part or all of a overdue balance/debt you have, from your current lender/credit card to another lender/credit card is transferred from one to another, usually to save money on interest repayments it is beneficial when the new loan/card rates are lower than the original after taking processing fee and closure fee into consideration.
Process of Balance Transfer:-
- Once you are approved for the balance transfer, the new lending company will contact your current lender on your behalf.
- The new lender will pay the debt you have to pay to the current lender.
- The time taken for Balance transfer is usually 7–14 days.