What They Don't Tell You About Cash Advances, Balance Transfers, and Convenience Checks

The smart consumer selects a credit card by matching their lifestyle, spending and payment habits. Other consumers play the cash advances and balance transfer game, expecting short-term relief or hoping to gain a quick profit. After all the hidden fees, accumulated interest , and minimum payments due, the consumer will have to pay a higher percentage of the total borrowed amount back within a short-time period, or risk accumulating charges and increasing the balance tremendously. At this point, there is no reasonable rate of return that can fulfill any expectations.

When the consumer takes a cash advance, they almost never get a ?grace period?, even if the card normally has one; interest is charged as soon as they take the advance. Interest on cash advances are often charged at a higher rate than interest on a purchase. On an average, a cash advance fee is between 1% and 2% of the amount of the advance. Be real careful, many credit card companies have surcharges for cash advances, and or they charge a higher interest rate compared to charges that are made to purchase goods and services directly.

A balance transfer, often viewed as a cash advance by the credit card companies, is also subject to fees and interest as soon as the transfer is made.

For example:

Say you have a $1000 credit limit at 9% interest, and you take a cash advance of $100, and your interest rate on the cash advance is 25%. None of the payments will be applied to the higher interest rate until the complete amount from the regular charges is paid off.

CONVENIENCE CHECKS

Those unexpected checks issued by your bank that show up in the mail box at the right time. I hate to be the bearer of bad news, but those are not ?FREE?. They are referred to as ?Convenience Checks?. Even the most tempting offer is wrapped with hidden fees and traps that make the risk far greater than the reward.

Unfortunately, the consumer has to deal with the same pitfalls as they do with cash advances and balance transfers. Convenience checks start accruing interest on the balance immediately from the time its redeemed, unlike credit card charges, which are interest free if the consumer pay the charges off before the due date.

Some credit card companies may charge hefty fees just to issue the check, usually around 2 to 5% of the check amount. (Read the check and any the offer letter carefully, in some cases the bank may not list the interest, so it?s best to consult with the bank before accepting the convenience check).

The ?BIGGEST DISADVANTAGE? is if your card has an existing balance, and you make a payment, the payment will be applied to the lower balance first, at the current interest rate, before the payment is applied to the convenience check balance. That means the balance will continue to accrue unpaid interest as long as the consumer uses the card to make purchases. Any sort of late payment or default will usually cancel the 0% promotional rate and will often cause most consumers to be charged back.

?MAKING BETTER DECISIONS WILL ENSURE MORE SOLID RETURN INVESTMENTS?.

Letonio Franklin is a debt negotiation for Franklin Debt Relief. FDR specializes in using credit card negotiation to reduce credit card debt. Visit Franklin Debt Relief for more information about their debt relief help services.

The Facts About Balance Transfer Credit Cards

Credit card debt is one of the hardest financial burdens to overcome, but there are ways to pay down your debt and lower your fees and interest rate charges. Balance transfer credit cards are one such way to consolidate your debt and pay off those high balances. It will take some time and research on your part, but the end results will be worth the effort.

Balance transfer offers used to arrive frequently in the mailbox, but credit card companies are reducing the amount of offers they send because of the current interest rate increases. Interest rate hikes are also responsible for higher fees and charges on your credit cards. However, there are still companies trying to entice customers with lower or 0% credit card balance transfer interest rates for consumers who transfer their credit card balances to them. Before you decide on one particular card to transfer your balance to, you should be aware of the terms, fees, and restrictions tied to that card.

Consumers looking to save money on fees and interest charges should research which company is offering the best deal. A 0% or low APR on balance transfers is one thing you want in a card. Another key item that saves you money are fixed APRs as opposed to variable interest APRs. Fixed APRs will save you money because the rate is guaranteed for a determined amount of time, and is not affected by interest rate increases. Variable interest rates are connected to the current or prime interest rate and will usually result in higher interest rates, which in turn costs you more money in finance charges.

Banks and credit card issuers are in business to make money, and the increase in interest rates has led to record profits from fees and interest charges for these institutions. To avoid being their cash cow, you must choose a card that has low fees and finance charges. As a bonus, look for credit cards that offer rewards programs or cash back, so that you can earn rebates while paying off that balance transfer.

Once you decide on a credit card to transfer your balance to, there are some rules to follow. Don?t respond to every offer you get or apply for several cards, because every inquiry into your credit goes on your file and will affect your credit score. Multiple inquiries make you look desperate for money, and lenders are less likely to see you in a positive light. Also, you may want to keep those old accounts open if you have a good record of paying on time as this shows you have a long credit relationship with that issuer. Finally, don?t be tempted to spend money again now that you have lower rates. Have a game plan to pay off your balance and stick to it. In the end, the goal is to be debt free.

Aubrey Clark

Aubrey Clark is an editor on staff with Credit Card Direct Where you can apply for credit cards instantly.

To reach Aubrey you may email her here

Best Balance Transfer Credit Cards May Save Your Life

Having a credit card can give you a false sense of security. Somehow you find yourself being lured to make purchase after purchase by that little piece of plastic between your fingertips. It?s a very common scenario. And if you are a part of the working class, it?s not likely that you will be able to afford to pay your balance in full. So you find yourself paying the minimum amount due printed on your statement every month, only to find out months later that you?re not that far from where you?ve started.

The reason for this is high interest rates compounded on top of your outstanding balance. Some credit card companies charge interest of up to 18%. And if you are only paying minimum, or slightly above minimum, you just can?t win. Its time to think of an alternative and that is finding the best balance transfer credit cards.

What Is a Credit Card Balance Transfer?
Simply put, a balance transfer means moving your debt from one credit card to another. This is a very good way of saving money. If you have more than one credit card, you can even consolidate your debts by transferring all your outstanding balances to just one card. Many credit card companies offer an interest-free period, making them the best balance transfer credit cards. There are also some offering considerably lower interest rates than what you are putting up with.

How Does It Work?
A credit card balance transfer is pretty straightforward. All you need to do is apply for a new credit card. Once approved, you can give the details of your old credit card to the new issuer and they can transfer the balance for you. If your new credit card has an online banking feature, you can even do the transfer yourself. Of course, you have to do your research and find the best balance transfer credit cards that fit your needs.

How Can I Find the Best Balance Transfer Credit Cards?
Research might be painstaking but it can help you find the best balance transfer credit cards. Find a credit card that would let you transfer your outstanding balance from your old card with a 12-month 0% annual percentage rate, or APR. Also make sure that the new credit card offers low interest rates after the period is over.

Read the Fine Print.
If you plan to make purchases with your new credit card, be very careful. Even if they have a balance transfer rate of 0%, most credit cards still offer the standard, and sometimes even higher, interest rates for purchases. Any payments made goes towards your balance transfer. As a result, interest is compounded each month until your balance transfer is paid in full. The best balance transfer credit cards offer 0% or low interest rates for both the balance transfer and purchases. Also be aware that some credit card companies will charge a transfer fee for every balance transfer.

Protect Yourself.
Once you have chosen the best balance transfer credit cards for your needs, don?t be too cocky to take further precautions. Where money is concerned, there are a hundred and one ways for things to go wrong.

? Do the balance transfer as quickly as possible. Most credit card companies have a limited period for you to take advantage of any promotions.

? If the approved credit limit is not high enough for your outstanding balance, just move what you can. Most people make the mistake of not using the new credit card because the credit limit is not high enough.

? Even with an interest of 0%, it is still debt. Always pay at least the minimum amount required to avoid penalties, or worse, losing the deal offered by the best balance transfer credit cards that you chose.

Manage your credit cards responsibly, or else you just might create more debt without a way of paying for it.

Interested in best balance transfer credit cards? Visit CreditCardMonitor.org today and find easy to get credit cards, particularly zero interest credit cards

Best Credit Card Balance Transfer Rate: It Pays to Shop Around

Smart shopping for 0% APR credit cards can save consumers hundreds of dollars in interest charges. Many consumers do not think to shop around for credit cards. However, with 60 percent of grocery store purchases being made with credit cards, the decision as to which card the consumer uses can have an impact on how much is paid in interest. One way you can save money in interest charges is to shop around for a 0% APR credit card to transfer existing balances to. The concept of shopping for the best interest rates is not new for purchases such as homes and cars, but so few consumers stop to think about shopping around for the best credit card deal.

0% APR credit cards save consumers money

It is possible for you to save hundreds of dollars a year by transferring balances to a 0% APR credit card. Here is how it works: A consumer applies for a new credit card with a special introductory interest rate of 0% APR for balance transfers. After gaining approval, the consumer transfers the balance of his or her credit cards to the new card. Some companies may waive the balance transfer fee, but a standard fee is usually a small percentage of the transferred balance. Whether the old card has a low 8.9% APR, or whether it has a higher 15.9% APR, the potential savings are well worth the transfer. For the entire introductory period (usually 6 to 12 months) it is possible for consumers to avoid paying interest on their credit card debt.

Sorting through 0% APR credit card deals

Some web sites provide you with an objective way to look at credit card offers. It is even possible to use a calculator to figure out how much you can save by transferring balances to a 0% APR credit card. Consumers receive the information they need to help them decide on the credit card balance transfer offer that works best for them. Objective side-by-side comparisons allow a more complete picture of available credit cards. When you find a card you like, it is also possible to apply for that card instantly from the web site. Helpful links to the credit card companies allow you to receive instant approval on their credit cards.

A word of caution

A 0% APR credit card balance transfer is a financial tool that can greatly benefit consumers. However, as with all financial tools, it is important to use it wisely. Consumers should be aware that failure to pay at least the minimum payment on time can result in an immediate end to the introductory period. Many credit cards, however, provide an automatic debit system or an online bill pay option. This can help consumers set up automatic payments that ensure that there are no late payments.

Shopping around for the best bargain is a way of life for many. Applying that rule to credit card applications can mean that you get to keep more of your hard earned cash.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com .

Please click here to find a Balance Transfer Savings Calculator.

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

Avoid the Pitfalls of Balance Transfer Credit Cards

Balance transfer credit cards can be quite a temptation for a lot of people. People can now transfer the entire balance from other credit cards to balance transfer credit cards. These credit cards attract people by offering perks like low interest rates, and reward incentives for transferring a balance. However, people who are interested in these cards should do some research before deciding to go with this type of credit card. This is because this credit card can put people in a worse situation than they were.

People want to take advantage of balance transfer credit cards because these cards offer a low interest rate or no interest rate for a period of time. People can have a nice grace period to pay down their balance without any added fee. They can be free from a large amount of debt by budgeting out a plan that will lessen the debt balance before a new higher interest becomes active. Balance transfer credit cards can be a blessing to people who are smart enough to maximize these cards? advantages.

Many people use this type of card to consolidate all their credit card debts into one. These cards can make it easier to pay the balance and can also reduce the amount of monthly payments. However, people who do this can actually end up paying more. The reason for this is that even though balance transfer credit cards offer no or low initial interest rate, the interest will eventually increase. People should realize that when they choose to combine all their debt into a single large sum, they can pay a lot more once the interest rates increases.

Fortunately, people can avoid this problem by paying a significant amount of the balance before the interest rates go back up. It would also help if they can pay their monthly payments on time. Doing this means that they will not add to their balance. Staying on top of payments and setting a plan to pay off the debt is the best way to ensure that balance transfer credit cards help rather than harm. These cards are ideal for people who have an effective plan to pay off their debt. Balance transfer credit cards can enable people to deal with a single company, instead of dealing with multiple credit cards that have multiple interest rates, payment dates, and other fees.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Balance Transfer Credit Cards and 0% Balance Transfer Credit Cards. Get the information you are seeking now by visiting http://www.FindQualityCreditCards.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.