Credit cards have become an important part in our daily lives. They offer us the advantage of speed, flexibility and manageability in making purchases. People who constantly travel from one place to another would find that credit cards are a great option in making purchases instead of carrying around huge amounts of cash. It is also a great help in times of emergency when we need to make a payment.

Because credit cards are seen as a great way to make instant purchases we usually have more than one credit card. It is normal today for a person to have 3 or 4 credit cards. The problem occurs when the bills arrive and we have a hard time in paying them. Usually after a couple of months of missed payments our debt would soon balloon to a huge amount. This is where balance transfer credit cards come in to help us.To explain it in simple terms, a balance transfer allows you to transfer the balance of your existing credit card to a new credit card. Different banks have different policies on the exact procedure but generally you can transfer the balance of your existing credit cards to the new card up to 95% of its credit limit.  Let us assume that your new card has a credit limit of $10,000 and your existing credit card has a balance of $12,000. You can transfer the balance of up to $9,500 to your new card.

You might ask why I would want to transfer the balance to the new card. Well for starters, the new card usually offers a much lower interest rate than your current credit card or they may even offer zero percent interest rate for balance transfers. This makes you save a considerable amount in making your payments.

We just cited an example for one credit card where we transferred the balance to the new card. Imagine if you have 3 credit cards that you wanted to do a balance transfer to your new card. This would simplify the payment process for you since you would only have to deal with one credit card.

Want to try out a balance transfer? Well first you have to apply for one. You should have at least an above average credit rating to apply for a new card.  You can then apply for the balance feature of this new credit card by doing it online by visiting the banks website, over the phone or by doing it the old fashioned way which is going personally to the bank.

It may take a couple of days for your application to be processed so it is best to follow up your application. Most of the time your application will be accepted and you can immediately do a balance transfer. If your application is rejected it is always a good practice to wait for two weeks before applying for a new credit card. Make sure to check on your credit rating as well since this is one of the primary factors considered for approval.