What is a balance transfer APR?
A balance transfer Annual Percentage Rate (APR) is a financial tool used by credit card companies to allow customers to transfer debt from one credit card to another. It is typically a lower rate than the standard APR for the card, making it a beneficial option for those who need to move their debt to a cheaper card. In Tennessee, a balance transfer APR must be disclosed by the credit card company before the customer agrees to the offer. This type of APR can vary significantly depending on the credit card company and the credit card deal. Generally, the balance transfer APR is a fixed rate, meaning the interest rate remains the same over the duration of the offer period. The offer period is typically 6-12 months, and the APR may have a fee associated with it. In Tennessee, the credit card company must disclose when the balance transfer APR period will end, the APR any associated fees, and the standard APR on the card. Customers should pay attention to the information provided by the credit card company so they understand the features and benefits of the deal. Some credit cards may offer a balance transfer APR that will incur a penalty fee if the balance is not paid off by the agreed date. In summary, a balance transfer APR is a special rate offered by credit card companies that allows customers to transfer their debt to a cheaper card. In Tennessee, the credit card company must disclose the length of the APR offer, the APR, and the standard APR of the card. Customers should understand the details before taking advantage of this financial tool.
Related FAQs
How do I apply for a credit card?Can I increase my credit limit?
What are the best ways to build credit?
What is the most important information to know about a credit card?
What is a variable rate credit card?
What is a credit card annual fee?
Do I have any recourse of action if a lender violates the Fair Credit Reporting Act?
What is a cash-back credit card?
What is a minimum payment on a credit card?
What is a balance transfer fee?
Related Blog Posts
The Basics of Credit Card Law: What You Need to Know - July 31, 2023The Pros and Cons of Credit Card Use - August 7, 2023
What Is the CARD Act and How Does It Impact You? - August 14, 2023
5 Tips for Understanding Credit Card Law - August 21, 2023
Understanding the FDCPA and Its Impact on Credit Card Law - August 28, 2023