Card holders can profit from credit card balance transfers several ways.
For qualifying individuals the transfer could be viewed as a short-term credit card loan at 0% interest in some cases, but only if the principal is paid back in full when due.
First, transferring balances to a lower-rate credit card can drastically reduce the monthly payment you pay on your outstanding balance, which means more money in your pocket.
As a promotional tool credit card companies often charge introductory below market interest rates, for a limited-time only, on their balance transfer offers.
Some even go as low as 0% APR:
- Discover Card for 9 months
- GM Flexible Earnings for 12 months
- Citi Platinum Select for 12 months
- Chase Elite and Premium for 12 months
- Palms Platinum Access for 6 months
- Capital One Platinum for 10 months
- HSBC Platinum for 12 months
The above balance transfer offers may change at any time at the bank’s discretion, so be sure to check with these banks to see if the rates still apply.
Second, transferring balances can give you access to perks that you currently do not enjoy, such as no annual fee, a longer payment grace period, cash back on purchases, reward points, etc.
Thirdly, you may even get a larger line of credit than you currently have.
This amount you are able to transfer varies greatly with each institution, so ask the bank how much you can transfer before making any decision.
It may be less than you need, or you be pleasantly surprised and get a more generous spending than what you expected.
Fourth, you may be able to consolidate all of your credit card debt into one, single low monthly bill, instead of keeping track of multiple accounts with different due dates, and getting stuck with a late payment that could affect your credit score.
Fifth, you might even be able to put excess funds into interest-bearing accounts and make money by paying zero-interest on the credit card balance transfer and getting interest from your bank accounts.
Check with the issuing bank if any portion of the balance transfer can be deposited into a personal savings or checking account, because generally balance transfers cannot be deposited into a financial institution at the low balance transfer rate.
On this you have to really be careful the credit card bank does not treat the balance transfer as a cash advance and charge you very high cash-advance rates, plus fees on top of that.
WORLD MASTERCARD BENEFITS
- Travel accident insurance up to $200,000 on common carriers
- Trip cancellation/interruption insurance for personal events such as sickness, death, injury, or if common carrier ceased operations.
- Trip delay insurance if the delay is greater than 6 hours.
- Baggage delay insurance to pay for most replacement items.
- If baggage is lost Mastercard may pay up to $3,000 per trip to replace the misplaced items.
- Auto collision damage waiver for car rentals paid with Mastercard. Also may cover theft of the rented car.
- Toll free number for assistance on travel services such as roadside assistance, information, legal counsel referrals, medical connections, replacement credit cards, etc.
- Mastercard will pay the difference if you find the exact same accommodations for a lower price somewhere else after paying for the hotel. You must submit your claim at least 72 hours before your check-in time to get a refund.
- Discount for someone help guide you through an airport, so you don’t miss your next flight, or fast-track you through security.
- Onefinestay: 10,000+ high-end rentals worldwide. World Mastercard customers get 10% off bookings, in addition to free Wi-Fi, toiletries and an iPhone to use during the stay.
- Purchase assurance: If something you buy with your card gets damaged, lost or stolen within 90 days, you can get reimbursed. You’re eligible for $1,000 per item and $50,000 per year. Several types of items are excluded, like plants, animals and computer software. This benefit is also known as “purchase protection.”
- Price protection: If you buy something and find that same item advertised later at a lower price within 120 days, Mastercard may pay you the difference. The parameters are:
1 – You must be able to provide proof of a lower price such as a print ad.
2 – You must provide proof of purchase with the credit card.
3 – There is a 120-day limit on the price reduction.
4 – No exchanges, refunds, store credits are permitted.
5 – Claims are limited to 4 per 12-month period
6 – Many items aren’t included, such as clearance, rebates, “limited quantity,” consumables, perishables, plants, pets, vehicles, etc.
7 – Properly filled out claim form and supporting paperwork must be filed within 60 days.
- Extended warranty
1 – Up to double the manufacturer’s warranty
2 – The extension covers service contracts purchased for the item.
3 – Maximum term is limited to 24 months or less
3 – Up to $10,000 in repairs or replacements may paid out under this benefit.
4 – Used, refurbished, motorized vehicles, real estate, services, software items and such aren’t covered.
5 – Situations normal wear-and-tear, physical damage, accidents, etc. are excluded from coverage.
3 thoughts on “Benefits”
Payments are made online by going to the credit card companies web site to set up and register for internet access to your account.
Without registering yourself with the credit card company, they will not let anyone access confidential information.
Usually on the web site there is a “Log In” link or icon in upper right hand corner.
Next to that, there probably is a link saying “Not registered” or “Register Here.”
You click on that link so you be able to access your account to pay your bill online.
Remember you must REGISTER yourself, on your credit card’s internet web site, so they allow you to see your account information and pay your bill.
What is considered to be a legitmate balance transfer from another credit card?
The safest transfers include personal loans, student loans, credit cards from banks other then the one offering the transfer, auto loans. Balance transfers between credit cards can be disallowed if the credit cards are issued by the same bank, for example CapitalOne does not accept transfers from Kohl’s, Sony, General Motors, Union Plus because those credit cards are serviced by CapitalOne. Only way to know for sure the offer is valid is to call the 800-number customer service number on the back of your credit card. Every bank has its own set of partners, and these partners change over time, so contact the bank making the balance transfer offer to keep current. Also balance transfers may be denied if your account is delinquent, overlimit, charged-off or closed.