The Basics of Credit Card Balance Transfers

There simply isn?t one of us out there who enjoys paying the high interest rates on credit card balances, no matter how much money you have in the bank or make at your place of employment. I don?t know about you, but I always promise myself that whatever I charge during a billing cycle, I will pay off when the bill comes due. But when I open up the envelope from my credit card company, I realize that there are many other places my money could be well spent- and that means my balance doesn?t get paid in full, thus resulting in loads of pounds paid in interest. That?s why so many residents of the UK are taking advantage of the financial benefits of transferring their balances on a high rate credit cards to one with significantly lower (or even 0%) interest.

Credit card companies are in a desperate fight for your business, so they offer alluring programs (such as 0% interest on balance transfers for 6 months or so) so that you?ll take your old credit card balance and place it on one of their new cards. This is all done with the hopes that you will use your new credit card instead of your old one- hence the new company generates any interest on new purchases, not to mention the charges on your transferred balance when the special program expires. They want you to give them your business, never look back, and never again transfer your balance to another credit card company. Their begging can work to your advantage as long as you understand the basics.

There are mainly two types of credit card balance transfers, the first of which involves a very low interest rate, usually 0%, for a fixed amount of time, perhaps from 5 to 9 months. At the expiration of this time period, the company?s normal interest rate charges will apply, generally upwards of 15% or more. So be sure to stay on your toes, keep accurate records and switch your balances when the introductory rates expire to get the most out of these enticing rates and programs.

The other type of credit card balance transfers involves a low interest rate, maybe 5% or less, but maintains this same, nominal rate for the entire time required to pay off the transferred balance. Any new purchases will be subject to the card?s regular, significantly higher rate (again, around 15% or so), but if you have the self-discipline to not add any additional charges to this card, it can save the hassle of transferring your balances at every 6-month mark and still save you hundreds (or even thousands) of pounds over the life of your credit card balance.

John Fencik recommends that you visit http://www.creditcardexpert.co.uk/balance-transfers.php for more  information on Balance Transfers.

Choosing A 0 Balance Transfer Credit Card

Many of us have been in this situation, two or three credit cards with balances and a high interest rate being charged monthly. If you can only pay the minimum due each month, you will never get ahead. The majority of your monthly payment is being eaten up by interest. There is a way out of this situation and that is with a 0 Balance Transfer Credit Card.

A 0 Balance Transfer Credit Card is an offer that gives you an introductory 0% APR, usually for the first twelve months billing cycles and allows you to transfer the balance from high interest rate credit cards to your new account. With a plan and discipline, this allows you time to pay down your principal interest free.

Like all consumer products, 0 Balance Transfer Credit Card offers are not altogether the same, so you really need to do your homework and compare the fine print of each card. You need to be certain that the card you finally decide on will give you exactly what you want and that's to pay down as much of your debt as possible during the introductory period. It?s also wise to know what the regular interest rate will be once the introductory period is over should you not be able to pay off the entire balance during the introductory time.

Some cards offer the 0% APR for balance transfers as well as new purchases and cash advances, while other issues only offer the 0% APR for the balance transfer only. Please be aware that payments are applied toward the lower interest rate balance. So if the 0% APR only includes the balance transfer and you charge on your card, any payments made will be applied toward the 0% APR balance until it is cleared.

There is a charge for transferring the balance to your new account, ranging from a minimum of $5, to a maximum of $75. This transfer fee is for each balance you move over to your new account. Review each offer carefully to see what their proposal is.

When your new 0 Balance Transfer Credit Card account is approved, you will be given a line of credit depending on your credit worthiness. You will only be allowed to transfer the balance from the higher interest accounts to within the set credit limit of your new account. Should you make a late payment or go over your line of credit, your introductory offer will be withdrawn

A 0 Balance Transfer Credit Card can be a useful tool in paying down your debt, interest free, if you have a financial plan and stick to it.

Bradley Carson is the owner of Apply Online For a Credit Card at http://www.cards-king.com, a website created to bring concise credit card information and introduce offers from premier financial institutions. See Brad's current recommendations of 0% Balance Transfer Credit Cards at http://www.cards-king.com/categories/balance_transfer_credit_cards

Balance Transfers Credit Card "Primer"

Credit card features are composed of the APR (annual percentage rates), balance transfer fees, interest rates, late fees, and so forth. The APR is a primary feature to reflect on while searching for balance transfer cards. Credit card companies are competitors; therefore, the companies will strive to offer special deals on credit cards. Some of the deals include 0% introductory rates and low interest rates, particularly for balance transfers. In your search for the best balance transfer credit cards, be sure to take maximize the advantage of the offer by using the card strictly for balance transfers. If you use the cards to make purchases, please keep in mind that the credit card issuers profit from the corresponding financial charges that you might incur while using this type of card.

Introductory Periods

For a few of the balance transfer cards, lenders will add zero percentage introductory rates for up to 15 months. Some credit card lenders will determine the zero introductory rates from your credit rating. If you have six months, one year, or 15 months of 0% on your balance transfers be sure to pay off the debts before the date expires.

Balance Transfer Fees

Balance transfer fees consist of a percentage of the full amount that is financed and transferred to the card. The fees typically average around 3 percent of the amount transferred. The purpose of comparing cards is primarily due to the fact that some credit card lenders will essentially surrender the normal fees during the introductory trial.

Transferring the Balance on Credit Card Dates

Very few of the available balance transfer credit card offers will not require a transfer fee. The balance transfer credit cards that provide the most benefits are those cards that enable you to complete balance transfers during the entire introductory period. The cards that require you to start balance transferring upon receipt of the card do not allow the flexibility that the latter card allows. Be sure to read the terms and conditions, since you can look for clauses, stipulations and/or restrictions on balance transfers. The most important thing to consider is understanding, the types of balances transferable, before accepting the card.

The balance transfer credit cards nowadays have select programs that offer rewards. Comparing the cards will help you find the better cards that suit your needs. Look through the clauses when considering rewards balance transfer cards, since some card lenders will not apply the points to the balances transferred. Still, this could be the better choice!

For more information on balance transfer credit card basics, Bert Wills recommends that you visit CreditCardAssist.com.

Balance Transfer Credit Cards - Finding the Best Available

Balance transfer credit cards are those that make an excellent choice for transferring balances from one card to the other. The main purpose behind transferring balances is to remove debt from a card with a higher interest rate to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The Annual Percentage Rate (APR) is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don't use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant's credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.

Robert Willard recommends you visit CreditCardAssist.com to learn more about the best balance transfer credit cards currently available in the marketplace