Credit Card Balance Transfers, Here’s What You Need to Know

When you are thinking about ways to reduce the burden of costs from using a credit card, credit card offers come from other banks via email. Check for a while and it turns out the offer is more attractive than the credit card you are using now. For example, the interest charged is less than your credit card interest now. Plus a free annual fee forever. Then, the late fee is relatively small.

You are also interested and want to get the credit card. However, do you remember that if a credit card that has a bill swells and has not been paid, how can you have a new credit card? Relax, you may have a new credit card. Currently, almost all banks include a balance transfer feature as a credit card facility. Don’t know what balance transfer is? For more details, you can find out from the description below.

Balance Transfer, How it Works, and Benefits


Credit card balance transfer is the transfer of a bill balance from one credit card (currently used) to another credit card. So, in paying your credit bill balance, you no longer pay it to the old bank, but to the new bank whose credit card you choose.

As an illustration, to find out how it works, imagine that you pile up bills on your credit card at 10% interest. You find a credit card that is profitable and then makes a balance transfer. If the new credit card offers 0% interest for a period of 6 months, you only pay bills on the previous credit card with 0% interest alias without interest.

Of course, this is profitable if you successfully pay the bills within a period of 6 months. In other words, you are not burdened with interest on a new credit card in the settlement.

What Should Customers Look For?


From the explanation above, you may have already begun to understand about balance transfers and their benefits. Yes, as one said, you can pay off the old credit card without paying interest (provided the new credit card offers 0% interest at the start of use).

Then, what do customers need to consider before deciding on a balance transfer? There are a number of things to consider so that you truly benefit from balance transfers.

  • Balance Transfer Fee.

There is a fee if you make a balance transfer. These costs are intended as administrative costs. The amount is an average of USD. 20,000-USD. 25,000, depending on the provisions of the credit card issuing bank.

  • The magnitude of Interest.

Each bank offers attractive interest that is usually up to 0%. And usually, the 0% interest is given as a promo from the bank concerned. However, the interest promos have a certain period of time, around 3-6 months. After that, you are charged with normal interest. Here’s what you need to pay attention to. Choose a credit card that is normally smaller than the previous credit card.

  • The magnitude of the Maximum Balance Transfer.

This is what you need to know first, it turns out the balance transfer has a limit. You can make balance transfers a maximum of 60-90% of the credit limit approved by the bank. For example, the Bank Y credit card that you choose as a balance transfer destination sets a limit of IDR 10 million and a maximum balance transfer amount of 80%. From there, it can be seen, the amount of balance transfer that you can do is IDR 8 million.

  • Penalty Costs Due to Accelerated Repayment.

Be careful and do not intend to pay off credit card bills sooner than the agreed time. Because banks impose penalty fees for bills that have been paid off prematurely. However, if you really intend to pay off before the agreed time, be sure to know in advance how much the penalty costs to be borne.

  • Always Pay Full of Credit Card Bills.

For this one, do not let you neglect. If it is too late to pay or pay less than what has to be paid, the bank will charge your bills with normal interest.

  • Complete the requirements.

No complicated and easy to do, you only need to prepare: a photocopy of identification (KTP / Passport), a photocopy of another bank credit card (back and forth), and a photocopy of the billing statement ( billing statement ) of the bank’s credit card for the past month.

Pay attention before making a balance transfer

Pay attention before making a balance transfer

From the explanation above, you might start to know what needs to be observed. Yes, things, such as balance transfer fees, interest rates, maximum balance transfer fees, and so on, are the first things you have to look at.

Beyond that, you need to pay close attention and find out the reputation of the bank to which you will choose the credit card as the balance transfer destination. Then added with the experience of customers who have felt the balance transfer at the bank you choose. By examining and weighing those mentioned earlier, you will feel the true benefits of balance transfers.

Online loan to account – online loan to account

An online loan is a financial product offered by non-bank institutions. Money can be in your account even in 15 minutes. Check what account loans are and whether this solution is right for you.

Online loan to account – how does it work?

Online loan to account - how does it work?

You can take quick loans via the internet on your account without leaving your home and without completing many formalities it all depends on the services of the company you use. Check what are the typical online account loans:

  • You can borrow money by completing the online application at any time – all you need to do is provide the necessary data, such as your PESEL number, registration address, telephone number or bank account number.
  • You do not have to meet strict criteria, submit employment, income and other financial obligations (loans or maintenance) – but remember that the requirements vary from one loan company to another.
  • You can borrow from several hundred to several thousand dollars.
  • If you decide to make a quick loan to your account via the Internet, you will probably be able to choose the repayment date and the frequency of installments – you can borrow money for several weeks or several months.
  • Loan companies often do not attach much importance to your credit history in the Credit Information Bureau or in the debtors’ databases, nor will they assess creditworthiness.

If you want to take advantage of the online loan offer on account, you usually need to have:

  • 18 or 21 years old;
  • Bank account.

The advantage of quick loans is their easy availability, formalities reduced to a minimum, and the ability to receive money quickly.

Online loan into account – when can it be useful?

An online account loan that you can get immediately can be helpful in many emergencies. Here are some examples:

  • when your car broke down;
  • when you need to buy a new washing machine, fridge or other equipment;
  • when there is a unique opportunity to buy your dream equipment or promotion for a holiday trip;
  • before Christmas, when spending suddenly increases;
  • when you have to pay unexpectedly for medical expenses;
  • when you simply run out of money for a moment and you lose liquidity.

Online account loan and online account loan?

Online account loan and online account loan?

It is common for the terms “credit” and “loan” to be used interchangeably. However, both concepts are not synonymous. Here are the most important differences:

  • Loans are granted only by banks and no non-banking institution may offer loans to customers. Such companies can grant loans (it can also be a quick loan to an account via the Internet).
  • A loan is a broader term than a loan. Loans can be granted by both non-bank companies and banks, and even private individuals.
  • When you take out a loan, the person or institution that lends you money may or may not sign a contract with you – sometimes verbal confirmation is enough. It is different in the case of loans, the allocation of which is regulated by banking law. Pursuant to Article 69. the loan agreement must be in writing.
  • To get a loan, the bank must check your credit history and assess the so-called creditworthiness. Non-bank institutions can provide support even if your credit history is not the best. Therefore, an online loan to an account without BIK is possible.
  • Charges such as interest, margin or insurance costs are always added to the loan amount. The cost of the loan is always set by the person or institution that borrows the money. Therefore, such costs may be higher or lower than the cost of credit, and sometimes even zero – it all depends on the offer and the company that offers the loan.

Is there such a thing as fast credit over the internet into your account?

Yes, credit to the account via the Internet is possible, but it is usually not as fast and easy as in the case of quick loans via the Internet to a personal account. Often, to take a loan on your account via the Internet, you must be a customer of the bank and, e.g. have access to electronic banking. There are also situations when a telephone conversation with a bank consultant is necessary.

In addition, the bank, in any case, must verify your creditworthiness, and you will probably need to provide information about employment or income. It is also necessary to verify your identity by transferring a symbolic amount to your bank account. The bank may also require a hand signature on the contract provided by the courier.