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Student credit card balance transfers provide assistance to students with debts. Student credit cards usually carry high interest rates. High rates are levied because banks want to limit their risk of loss on students who generally have no credit history or rating. Very few students actually build a good credit rating.
Many students often find it hard to pay monthly installments and interest. They, therefore, opt for student credit card balance transfers. Under these offers, their accounts are transferred to a credit card with no interest. The zero percent interest is maintained for the initial nine to twelve months, after which the rate is restored to a predefined level. Student credit card balance transfers help students save some amount of money that can be used later to pay off debts.
Student credit card balance transfers take care of not only credit card balances but also other loans and installments. These loans are transferred through balance transfer checks. However, these transfers carry a transaction fee. Transaction fees are usually charged in terms of some percentage of the transferred amount. A large balance results in a substantial transaction fee, which can be disadvantageous to students who want to transfer large balances. Some banks fix the transaction fee at $50 or $75 to attract more customers.
Though student credit card balance transfers are generally attractive because of the zero percent interest, not all accounts can be transferred. If a student has very large outstanding balances on several high-interest credit cards, it may not be possible to transfer all of them to a single low-rate card. The student can transfer only a small portion of the outstanding balances. Information booklets on student credit card balance transfers mostly highlight only the attractive side of the offers. Important terms and conditions that limit the advantages are usually printed in fine print. Students usually fail to notice this information. So, it is imperative that a student thoroughly examine the terms before taking advantage of a student credit card balance transfer.
