Credit Card Balance Transfer Tips

Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.

Pre-determining interest rates

Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out.

New purchase interest rates don't equal the balance transfer rates

The intent of transferring credit card balances is to obtain a lower interest rate and eliminate your debt quicker. It is important to note that the balance transfer interest rate is not going to be the same for new purchases made with the credit card. In fact, new purchase rates are going to be higher. Also, payments that you make towards your credit card bill are going to be applied towards the balance transfer debt first, until they are eliminated. As a result, you are going to end paying a lot of money in interest costs for new purchases. It would be wise for you to pay off all of your balance transfers prior to making any new purchases with your credit card.

You should also be aware that many issuers will apply the introductory rate to new charges only. Therefore, you will end up paying the full standard interest rate on your balance transfers, defeating the purpose of saving money while eliminating your debt. Obviously these type of card offers are not ideal for balance transfers and should be avoided.

Know what fees are associated with transferring balances

It is very likely that you are going to be charged a percentage when transferring credit card balances. This fee is usually 4-5%, with a $35-50 cap. Unfortunately, many credit card issuers have decided to eliminate the cap; resulting in consumers having to pay hundreds of dollars when transferring $1500 or more. Even worse, this fee is often considered a new purchase, meaning you pay a high interest rate for this portion of your card's balance. Therefore, you should look to apply for a credit card that offers caps on balance transfer fees and costs.

Be alert of bait-and-switch schemes

Offers are not always what they seem. Suppose your credit score is 550. It is likely that when you submit a request for a particular card offer, that the issuer presents you with an offer that is geared more towards people with bad credit. Specifically having a higher interest rate and no introductory offer. You can get approved, and not even be informed that the approval is for a different credit card. You probably won't even realize until after you receive your first statement. Therefore, it is crucial that you read the terms and conditions of the card you are approved for before you transfer any of your balances, or make any new charges.

Don't be late on your payment

It does not matter if you are one day late or ten days late. Being delinquent on your payment will result in you losing your introductory offer!

Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can apply for credit cards for people with bad credit

Balance Transfer Tips

The most expedient and convenient way (but not necessarily the most effective as we shall see later) of reducing the interest on your card is to get balance transfer, which basically means paying off one card with another. Obviously you need another card to do this and there is really no objection to this (unless you simply must abuse it.) Of course cards with no annual fee are best, but even a small annual fee is okay when you're saving more anyway. The number of card offers these days that have low or no interest periods makes this fairly easy. Here are a few things to take note of:

1. Balance transfer offer periods usually start on the card activation date, not the date you actually do the transfer. Once this period (usually about 6 mouths) is finished, the remaining transferred amount and any further transfers revert to the standard balance transfer rate.

2. Balance transfers at a later stage are still useful to eliminate cash out interest that may have been 'sandwiched' between purchase transactions. Learning not to get cash out is a good move in the long-run, but this will solve those impulse hiccups.

3. Transferring a whole card account balance frees your initial card to enable you to make use of the 'interest free days' or 'grace period' facility. (See Report.)

4. Depending on the credit card company's policy, you can do balance transfers over the phone, online or only by having a form sent out and sending it back. This last takes longer of course (though you could use fax if you're in a hurry) so allow for this extra time. On new card applications this is rarely a problem anyway as they'll ask you during the application process whether you want to do one (or you can wait until your card is activated if you like.)

William Ember is author of the Credit Card Conqueror Report which provides detailed and practical plans on how to save money on credit card interest and other charges (and in some cases pay none at all!) The report is available free from his website

Balance Transfer Credit Cards: A Way to Consolidate Debt

Credit card debt is a fact of life for millions of Americans. Once you have credit card debt racked up, it can be difficult to get rid of. Balance transfer credit cards provide a solution to this problem. By understanding how they work, you can use balance transfer credit cards to help you get out of debt.

How Balance Transfer Credit Cards Work

Balance transfer credit cards allow you to transfer the amount due on other credit cards to their card. Many offer a low interest rate or a 0% APR introductory rate on the transferred amount. This way, you can avoid paying hundreds of dollars on interest. By making payments each month, you reduce the balance and save on interest expense.

Understand the Fees

Balance transfer credit cards come in many shapes and sizes. Some charge a fee to transfer balances; others do not. Some offer low interest rates for a certain period of time; others allow a fixed low interest rate on the balance until it is paid off. Certain balance transfer credit cards come with a rewards program or additional perks. While balance transfer credit cards offer a great rate on the initial transfer, some include a high interest rate on new purchases. The payments you make will first be applied toward finance charges, then the transferred amount, and finally the new purchases. Your best bet is to find a balance transfer credit card that offers 0% APR on new purchases for the length of the promotional period. You may be surprised at how may credit card issuers are offering 0% APR on both the balance transfers as well as on new purchases for up to 12 months.

Study your Finances

Before you apply for a balance transfer credit card, be sure that you understand your financial situation. Look through your credit cards and the interest rates on them. If you are carrying balances with high interest rates, you may be spending hundreds of dollars each month on interest. It could take years to pay off the initial amounts placed on the cards. By transferring the balances to a credit card with a low interest rate, you can pay off the amounts faster. Also, balance transfer credit cards allow you to consolidate your debt. Keep in mind that some balance transfer credit cards only offer a low interest rate for a certain period of time. Many cards have a high interest rate or variable interest rate that kicks in after six months or a year. If you haven't paid off the balance by then, the higher interest will continue to increase your debt and work against you. If at all possible, you will want to pay off the credit card debt that you transfer within the promotional period.

Transfer Away

After you have done your research and understand your finances, you are ready to apply online for a balance transfer credit card. Pick one that suits your needs. Then set up a system to pay off the balance. Balance transfer credit cards can provide the first step toward getting out of credit card debt. By placing all of your credit card debt in one place, you can make just one easy payment each month. You also will be able to enjoy paying 0% interest for a period of time on your balances. With a little planning, you will soon be on the road to zero credit card debt and good money management.

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Ed Vegliante runs the website http://www.Credit-Card-Surplus.com, a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. View more Credit Card Articles

What to Look for in Balance Transfer Credit Cards

Balance transfer credit cards can be quite tempting. They offer a person the opportunity to ditch those nasty high interest rate credit cards, while usually throwing in some nice incentives to sweeten the deal. However, a person should be fully aware that there is nothing magic about about balance transfers. It's not like your debts just go away.

A very common reason that an individual considers a balance transfer credit card is that they want to consolidate all their credit card debt onto one card. This certainly is a convenience and cuts down on the number of bills they they have to pay. But be careful, when people do this they may actually end up paying more. The reason for this is that even though these cards often offer no or low interest initially, the free ride does not last forever. The rates will go up. So when the introductory period is over, the rates could be even higher than what they were paying before.

The best way to handle this problem is to pay down as much of the debt as possible before the rates go up. It is also vitally important that a person makes their payments on time. And do everything in your power not to add to that balance. Staying on top of payments and setting a plan to pay off the debt is the best way to ensure that a balance transfer credit card does the person good rather than harm. Balance transfer credit cards are a wonderful asset for those that have fiscal discipline.

Instead of dealing with multiple credit cards, with multiple interest rates, payment dates and fees, a person is dealing with one company. In the beginning they will usually get a low interest rate, many times no interest rate. This gives them a nice grace period to pay down their balance without the added fees. By budgeting out a plan that will get the debt balance paid down before a new, higher interest rate kicks in a person will have freed themselves from a large amount of debt.

Balance transfer credit cards can most certainly be a blessing, if a person knows how to use them responsibly and to their advantage. A balance transfer credit card is a powerful ally in eliminating credit card debt. By all means put it to work for you, not against you.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Balance Transfer Credit Cards and Balance Transfer Business Credit Card. Get the information you are seeking now by visiting http://www.Find-Cards-Now.com

The Ins And Outs Of Balance Transfers

If you have a number of credit cards, or are looking to get another card, then it pays to know about the ins and outs of balance transfers. If you use balance transfers correctly you can save yourself a lot of money in interest payments on your debts. If you are uncertain about how to use balance transfers properly, then here is some advice on the ins and outs of balance transfer?

What is a balance transfer?

A balance transfer is simply where you transfer part or all of one credit card balance to another credit card. You are effectively using one credit card to pay off another one. For example, if you have one credit card with a ?1000 balance and another card with no balance, you could transfer some or all of that ?1000 onto the card with no balance.

How do I make a balance transfer?

Making a balance transfer is extremely easy, especially if you have online banking. IF you have just got a new card then it is likely that you will asked if you want to make any balance transfers straight away. If you do then you simply give your other card details to the new card issuer along with the amount you want to transfer and they will sort it out for you. Also, on most online banking systems there is a feature to allow you to make balance transfers at any time.

Costs of a balance transfer

Unless you have a special rate for balance transfers, there is usually a cost involved in making a balance transfer. These rates can vary, but are usually either a fixed fee or about 2% of the amount to be transferred. When transferring a balance it is important to take these charges into consideration, because it may cost you more than the money you are saving if you have to pay a variety of fees.

0% balance transfer offers

One good way to make balance transfers work for you is to get a card with 0% on balance transfers. These cards usually charge a fixed fee for transferring your balance, but offer 0% interest on the amount you transfer. This 0% rate usually lasts for around 6 to 9 months, during which time you will not pay interest on your transferred balance. This is especially good for people who are currently struggling to keep up with their credit card payments due to high interest rates. However, you must remember that new purchases on these cards will be charged at the standard APR, and that after the 6 or 9-month period you will have to start paying interest.

Consolidating balances

Perhaps the best way to use balance transfers to your advantage is to consolidate your credit card debts. If you have a number of credit cards with different interest rates and balances, then try and transfer as much as you can to the cards with the lower interest rates. This will save on your interest, and as you pay off the debt you card start to transfer more and more onto the lower interest cards. If you use balance transfers wisely then you can really reduce the interest that you pay and keep up with your credit card repayments.

Peter Kenny is a writer for creditcards-gb.co.uk Please visit us at 0% Balance Transfers and Credit Cards Visit http://www.creditcards-gb.co.uk

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

0% APR Introductory With Balance Transfer Option

 

The Christmas Holiday Season brings retailers 25% and more of their yearly sales. It's safe to assume the month of January most likely shows the highest consumer credit card balances. As impulse buying often times is the culprit in charging more than we planned, it's easy to see how one could get carried away during the 'season of giving.'

Now it's January and those bills have started coming in. Two or more credit cards with high balances can take a bite out of your budget. The easiest solution for many consumers is to apply for one of the many 0% APR introductory credit cards with balance transfer options. This could lower their payment by consolidating their bills and at 0% interest to boot!

When you're looking into all the offers of 0% Introductory credit cards that allow you to transfer the balance from other cards, you need to compare offers carefully. Be sure you read the fine print. We often times get into the habit of getting excited with the hype and fail to read the details.

When you're considering a new 0% APR credit card, look into how long the introductory period is. It varies from card to card. It can be six months or twelve months with some newer offers up to eighteen months. How long is it going to take you to pay the balance down to where you're comfortable with it?

Then there's the issue of the balance transfer. Is there a fee for the balance transfer? Some cards do not charge a fee to transfer and others charge as much as 3%.

The 0% offers usually apply towards any amount you transfer over from other cards; but, does it apply to new purchases? This feature also varies. Sometimes it's just the 'balance transfer' amount and other times it includes 'new purchases' as well.

Another thing consumers should be concerned with when applying for a 0% APR introductory offer with a balance transfer feature, is what is the interest rate after the introductory period is over? This really can vary by several percentage points. Is it comparable to the competitors?

Last but not least, individuals need to be aware that if they should become delinquent prior to when the twelve month period is over, that 0% APR is gone. The offerers can now charge as much as 32% in some instances when your account is not kept up with the terms of the card. This could put quite a dent in the balance owing and the monthly payment as well.

The 0% APR introductory offer can be a great help to your financial situation. Just be sure to read the fine print. Know that you will be able to keep the terms and that the additional features of the card, including rewards offered, is what you're looking for.Bradley Carson is an online marketer and is the owner of http://www.cards-king.com/