Did you know that balance transfers can be beneficial to your business in more than one way? To discover the advantagesprovided by such transfers and know how to obtain the best alternative business loans easily, just go on reading the lines below.
Balance Transfers & Alternative Business Loans
Let’s start with what the so-called “balance transfer” is. What if you have 1 (or more) credit card balance and need a solution to get rid of your debt? No worries! You can move the existing balance to a new, lower-interest credit card. That’s where a balance transfer comes in.You can use cardsfor transfer that sometimes offera 0% intro APR for a certain period of time.
Thanks to such transfers, you can enjoy more streamlined payments that’remoremanageable. Only remember that after you’ve taken your balance to a new card, you shouldn’t close your old account. Otherwise, you can cause damage to your credit score. The thing is that open accounts don’t let your average account age get lower.
As a rule, to get a credit card for this type of transfer, you’ll need to show credit that’s far from being poor (670 or higher). The good news is that bad credit can’t create financial impediments for you if you work with the right alternative online lender in your field that knows the ins and outs of your business better than anyone else.
So, with a reputable high risk business funding provider you can enjoy no credit check and get easily approved for alternative business loans at the cheapest rates in the industry.
In general, if you need a card for such transfer, you’d better have a repayment strategy in place before applying for it.
Take Advantage of a Balance Transfer
First of all, given the amount of your debt, the 0% interest period on your transfer card could be enough to fully pay off the amount.In fact, such transfer is fine for those who have a few thousands of dollars of credit card debt, and 6 months is enough for them to pay it off. The transfer can usually be completed online or over the phone.
Well, now, let’s focus on the benefits:
- A low or 0% intro APR helps you reduce the unnecessary interest.
- Helps you get rid of your debt faster bytaking your monthly payments solely toward your principal balance.
- Makes your finances simpler by consolidating your monthly payments into a single bill.
- Grants you travel perks, cashback rewards, and other advantages.
If you’ve already made up your mind to start using a balance transfer, be sure to:
- Move all your costly balances
- Moveyour old balances in full
- Keep your old credit cards and loans with zero balance
To sum up, after you’ve moved your balances to your new card with 0% APR, start paying as much as you can on a monthly basis.As a result, you’ll not only save money on interest, get out of debt, but also build your business credit.
Author Bio:As the FAM account executive, Michael Hollis has funded millions by using alternative business loans solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.