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.

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0% APR Balance Transfers Credit Cards: Three Top Choices

There is a lot of interest in 0% APR Balance Transfer credit cards because of the tremendous savings possibilities they offer. You don't have to be an MIT graduate to understand that the 20% you are paying to a high-interest credit card on a balance of $ 10,000.00 is two grand; and if the interest on your credit card was 0% APR, that money would stay in your pocket. It turns out, however, that not all 0% APR credit cards are the same. Major credit card companies, who are competing fiercely with each other at this moment, use a variety of enhancement programs that combine the idea of 0 % APR Balance Transfers and with other add-on bonuses. Consider the offerings of three of the largest credit card companies, how they are similar in terms of the basics, but are putting a twist on benefits:

The Chase Platinum Credit Card

Chase bank has been in the credit card business for a long time, and this card is their standard offer. It has 0% APR on all purchases and balance transfers, provides free online account access, and does not charge an annual fee. The only question about this card is how long does the 0% APR last; and the answer depends on your credit. If you have excellent credit, Chase will give you 0% APR on purchases and balance transfers for a full year. If your credit is good enough to qualify for the card, but not quite good enough to meet the higher standards, that period of 0% APR drops. Still, the opportunity to transfer balances and make purchases at 0% APR makes Chase a good choice.

The Miles Card from Discover

Another industry heavyweight, Discover, has 0% APR credit cards available for purchases and balance transfers. The Miles Card, however, adds the benefit of accumulating airline miles to help consumers choose Discover over everyone else. The company touts their 0% APR credit card for its twelve month duration and the ability to include balance transfers at no interest. The real inducement, however, is the 12,000 mile sign-up bonus and one-mile-for-one-dollar point award. Just to make the deal a little sweeter; there are no blackout dates for these miles and you can fly any airline at any time. You have to have good credit to get one, but the Miles Card from Discover may be a good way to save interest on purchases and balance transfers while building up miles for the next vacation.

Citi? Diamond Preferred? Rewards Card

This 0% APR credit card from Citi not only gives you 12 months of interest-free funds and no balance transfer charges, it also has a points reward system that gives you redeemable points based on purchases. The program works by offering five reward points for every dollar spent on purchases made at supermarkets, drugstores and gas stations; all other purchases get one point per dollar. You get 5,000 bonus points when you get your card, which can be redeemed for a $ 50.00 gift card after your first purchase. Like the Discover card, you will need good credit to get this 0% APR card, but the initial bonus points and rapid accumulation of reward points for purchases of the basic necessities of life could make this just the card for you.

These days, the question is no longer about finding a 0% APR credit card or a 0% Balance Transfer card; the issue is how would you like that card-with extra months of interest-free money, airline miles, or other rewards such as incentive point programs? Any person who is currently carrying balances on high-interest credit cards should shop online and take a look at the 0% APR and 0% Balance Transfer credit cards from Chase, Discover, Citi and other companies. You may just find the right card for you.
Use the following link to find 0% Balance Transfer Credit Cards: http://www.credit-card-surplus.com/balancetransfer.php . Ed Vegliante runs http://www.credit-card-surplus.com , a directory enabling the consumer to compare and apply for credit cards.

Balance Transfer Credit Card Facts and Myths

There are a number of balance transfer credit card facts and myths that are important to be cleared up. Understanding these facts and myths will help you to better keep your finances under control.

Myth: I can get arrested for continually transferring my credit card balances.

Legally, you can transfer your credit card balances as often as you want. So long as you are making your payments and not attempting to defraud your lender, the law does not concern itself with how you choose to handle you finances. It is, however, a bad practice to continually move your balance transfer credit card to another. This is because, in order to do this, you need to open up several credit card accounts. When it comes to your credit rating, having a large number of open accounts can lead to a bad credit rating.

Credit cards utilize what is known as "revolving credit." This credit is different from something such as a car payment, which is paid back in installments. Too much available revolving credit puts you in the high-risk category. The basic thought process behind this is that it would be too easy for you to acquire a great deal of revolving credit, use it all up, and then default on your payments. Therefore, using balance transfer credit cards to consolidate bills one time is a good idea, but it shouldn't be a routine practice.

Myth: The best balance transfer credit cards have a 0.00% APR.

While it is true that the best balance transfer credit cards should offer a 0.00% APR, there are more factors to consider when choosing the best card. For starters, you need to learn more about this special APR. Do you need to complete the balance transfer at the time of application in order to qualify for the 0.00% APR, or do you have a window of time during which you make transfers? Does the 0.00% APR last for the lifetime of the balance transfer, or will it rise to an above average APR within a few months? Does the balance transfer credit card offer other benefits, such as travel insurance and fraud protection? Does the card offer a low APR for purchases, as well, or is it best to use the balance transfer credit card only for transfers?

Myth: Balance transfer credit cards are the key to getting out of debt.

While balance transfer credit cards can assist you in taking control of your debt, they should not be considered your primary means of getting out of debt. Instead, you should look at the balance transfer credit card as one tool in your tool belt of obtaining financial freedom. You can consolidate all of your higher interest rate credit cards onto one balance transfer credit card, thereby paying less in finance charges. It also makes it easier for you to keep track of your debts and your bills because all of your payments will be made to just one credit card. Nonetheless, it takes responsibility, diligence, and proper planning to get out of debt - not just getting a balance transfer credit card.

Myth: Balance transfer credit cards are hard to find.

Many people mistakenly believe it is difficult to find a great balance transfer credit card, but this is not true. Many credit card companies offer special introductory rates in order to entice people to apply to their card. After all, the more money you transfer to their card, the more money they can potentially make on the finance charges you have to pay. In fact, you might even be able to make a card you currently have into a balance transfer credit card by calling the credit card company and asking them if they would be willing to give you a special deal. Many companies will waive fees and lower interest rates to keep you with them.

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

Zero percent Balance Transfers can damage your Health

What you are about to read may make you reassess your attitude to zero interest balance transfer offers. I will show how these balance transfer offers are pushing more and more people into serious financial difficulties and I will suggest a few ideas on how you can manage your debt better.

Credit card debt is rising at an alarming rate and many people are now getting into serious financial difficulties. One of the reasons is the promotion of no interest balance transfer offers and interest free initial periods.

Like most people, I've been tempted by the these offers to change my credit cards. I've taken them up on their offer and moved my credit card debt and, for a limited time, had no interest to pay. But "just in case of an emergency" I usually hang onto my old card.

Then something happens, an unexpected bill, or a wedding or birthday gift I've forgotten about. "Never mind" I tell myself "I can put it on the old card - there's plenty of credit on there so it's no problem."

A few months and a few unexpected bills later the interest free period runs out I have to pay interest on both my new card and the old card. Now I'm worse off than when I started but that's no problem as I can look for another card offering another interest free period and zero interest balance transfers.

It's so easy and the banks and credit card companies are so eager to lend the money that it becomes routine, until that is, something goes wrong. You could fall ill and be off work, or, you could lose some overtime and your wages fall, or maybe that big deal you were relying on falls through.

It may just be that the credit card companies decide you have too much outstanding on credit cards and you would have difficulty paying the repayments, or simply they spot that you are a regular churner of the debt and they don't want your business.

Whatever the reason the result is that you have all the interest to pay and you start to struggle with the minimum payments and miss one or two. Because you've missed payments it becomes even more difficult to find the next interest free balance transfer offer.

Now you have a real problem but it is one that can be avoided.

I could suggest that you don't use credit cards but I suspect that would not be acceptable, and I am not going to suggest you ignore the 0% offers - that would mean you paying interest when it is not needed.

The simplest way to benefit from these balance transfer offers, but keep your card debt under control, is to cut up your old card when you switch to a new one.

That way you benefit from the 0% offer but minimize your exposure to higher debt.

Once you have cut your card up though, it is essential that you contact the card issuer and close the account. Until you close the account the card issuer will continue to tempt you with special offers to use your old card.

Another tip is to never pay just the minimum payment. Always pay the maximum monthly payment you can afford. Reducing your payments simply pushes back the time when you have to repay and in the long term increases your payments. Use the interest free period to reduce your debt to the minimum and if possible clear the balance.

Credit card companies don't offer an interest free balance transfer because they are feeling generous. They do it because, in the vast majority of cases, they will be able to charge you more in the longer term. Use interest free credit to benefit you not the credit card companies.

John is 51 and lives in Manchester in the UK. He spent many years in insurance and finance now writes full time for a number of web sites. Go to Credit Card Debt for more information on how you can get the best from your credit cards.