How To Compare Different Balance Transfer Credit Cards

A few years back when the credit card companies realised that they'd reached market saturation point - that is to say, nearly everyone who was going to get a credit card had one - they turned to a new tactic to increase their business prospects. In order to continue to grow, they realized, they'd have to lure business from each other. This was easier said than done - years of market research told them that customers tend to be fiercely loyal to their first credit card. In general, whichever credit card was the first in their wallet was the one that they'd continue to use. In order to overcome the inertia of 'I've already got a credit card, ta!', they devised balance transfer schemes to entice customers to swap out their accounts for a new one with their own company. Thus was born the 0% Balance Transfer Credit Card.

And it worked a treat. By offering people the chance to move their current account balance to a new card with no interest incurred until it was paid off, the credit card companies started a whole new game and spawned a whole new class of customers - rate tarts. Rate tarts would transfer an outstanding balance from one card to another that offered no interest charges, and leave it sit there until the 0% interest period ran out - then move their balance to a new 0% balance transfer card. It didn't take long for the companies to tick to what was going on - and to change their balance transfer deals. Of course, each time they change their schemes, the rate tarts figure a new way to turn the changes to their advantage, and there are more changes. All this has led to an entire range of balance transfer credit cards with differing advantages, terms and disadvantages.

Balance transfer is still an excellent way to cut down on how much it will cost you to use your credit cards, but with all the variations on balance transfer in existences, it's vital to compare credit cards with each other to make sure you're opting into the best scheme for your needs. Below are the major points to consider when you compare credit cards online to choose the best balance transfer credit card scheme.

- Compare credit cards by balance transfer rate While there are still a few 0% balance transfer card schemes floating about, most companies now offer LOW APRs on balance transfers for the life of the transferred amount. The card with the lowest transfer rate isn't always the best card, but it is one comparison point.

- Compare credit cards by life of low transfer rate Many balance transfer cards offer their low balance transfer rate for the 'life of the transfer' - that means as long as it takes you to pay it off. The trick here is that every payment you make to that account will go to pay off your transferred balance. If you charge other purchases on your new balance transfer card, they'll be accruing interest at a higher rate.

- Compare credit cards by typical rate for purchases Since many balance transfer credit cards now require that you make a certain amount of purchases using the card each month in order to keep the low balance transfer rate, it's also important to compare the interest rate charged for new purchases on the card. Keep in mind that your payments won't make a dent in any new purchases to your card until the balance transfer is completely paid down, so you'll also want a card that requires the least amount of spending to maintain your low transfer rate.

You can compare credit cards online at "airaid.co.uk", a leading UK site to compare credit cards.

Rachael Gallant has worked for the UK financial services market for a number of years specialising in credit card applications. She's a busy mum and understands how time consuming it can be to sort through the hundreds of different offers whilst trying to interpret the associated jargon. That's why she writes clear, easy to understand guides exclusively for "airaid.co.uk" to help UK residents find credit cards that best suit their personal circumstances.

Credit Card Balance Transfer Can Help You Earn

Credit cards can help you earn! Sounds unbelievable? Well, that is what the 0% credit card balance transfer has been doing. Nowadays, companies have bettered the introductory interest rate offer by throwing in extended 0% interest periods if holders of other competing cards choose to transfer their outstanding balances.

Credit Card Balance Transfer ? How Is It Done?

If you can juggle things right by taking up an introductory offer of 0% and then transferring the balance to another card with a similar scheme just when the old one is about to end, you could end up with significant savings!

Balance Transfer: Look before You Leap Unfortunately, things are not always that easy anymore. Credit card companies have woken up to the fact that wise debt managers are trying out different strategies to capitalize on 0% interest periods. Have all your bases covered by checking out the following points:

Balance transfer fees: You could be charged additional fees if you want to transfer your credit card balance. This rate can be as high as 2% of the balance transfers. If you are not careful, you might end up paying more in fees than if they charged you interest normally.

Additional perks: Be sure about what this 0% interest rate applies to - some cards offer a 0% interest on balance transfers but all your new purchases are charged at the normal rate from the very onset. While others charge 0% interest on purchases but balance transfers are subject to the standard rate. There is a third option, which is best, if you want to reallysave money with balance transfers ? cards that charge 0% interest on both balance transfers and purchases during the promotional period.

Late payments: Don?t miss the fine print regarding timely payments. Some cards have a rule that if you fail to make even a single payment by the due date then you have to automatically forego your promotional privileges!

Credit Card Balance Transfers User Guide

- If you transfer balances from one card to another, ensure that you are clear about how long the offer lasts, and when is the optimum time to switch to a better card.

- Read between the lines before investing in a new card. Verify the details in the card application agreement documents. In other words, don?t be fooled by the 0% interest pitch.

- Make sure you don?t get stuck with a card with a higher APR while in the process of getting a credit card balance transfer.

- Compare credit cards. 0% interest cards or low interest cards can be identified without much difficulty. However, access information sources that do not promote any specific card and they should help you make a wise choice.

- Go for a flexible and quick interest-free card when transferring balances.

Achieve Balance Transfer with Ease

Once you are armed with a new card, make sure this new company does all the legwork with your last card company. After the balance transfer has been conducted, resist the temptation to use your old card again. Then, all you have to do it make sure you keep paying your minimum dues at the end of each month,making you quite the balance transfer pro!

Robert Alan recommends that you visit CreditCardAssist.com for more information on how a credit card balance transfer can save you money.

Balance Transfers Primer

Are high credit card fees giving you sleepless nights? Think smart: balance transfers could be an intelligent short-term solution. The following article can be used as an introductory guide and a primer on the use of balance transfers that discusses the intricacies of balance transfer details. Transfer the weight off your shoulders and get a balance transfer credit card with a lower rate of interest. However, make sure to run through the terms and conditions of the new balance transfer card, to make sure you win in the long run.

If you are not really keen on getting a new card, tell your existing company that you want to transfer your balance to another card that offers a much lower rate. Your existing credit card company just might offer you a better deal. If not, then go ahead and call the competition!

So what is so great about balance transfers? Balance transfers to a card with a lower rate can significantly cut down your interest and fees. The most common rate of interest offered by companies on balance transfers is 0% for 3 to 12 months. If you are fortunate and your credit is good enough, you might qualify for a 0% interest card for 12 months on balance transfers and purchases. Be aware, however, that some cards, will link the introductory annual percentage rate (APR) to the billing cycle of the card.

There could be some additional perks available on your balance transfer card as well:
1) Your new card may charge no annual fees.
2) The grace period on payments might be longer.
3) Rewards like cash back on purchases might be available.
4) Discounts from certain retailers, identity theft protection, and even car insurance can be thrown in as well!

How Do I Get One?

You will be required to go through some basic application procedures and paperwork on a balance transfer. You could write a balance transfer on one of the convenience checks that the card issuer will provide after getting approval on the card. These function just like normal checks but there are some things to be aware of, such as expiration dates. Time can cost big money, in this case, with the old interest rates snapping at your heels. How much you can transfer will depend entirely on the credit limit of your new card.

The fees for balance transfers are similar to that of cash advances, but often times, fees will be waived for the very best card offers. If there are associated transfer fees on the card, it is advisable that you avoid transferring small balances, as the transaction fees might undercut your potential savings. Some additional fees on these cards might include:

1) Late Fees: Once the introductory period on your balance transfer ends, you will start incurring finance charges on the remaining balance. Late fees on these card offers are particularly expensive. In order to avoid these exorbitant fees, make sure that you mail payment well in advance of the due date. If you are using an ATM deposit, stay informed about the processing time of your payment. Banks either charge a flat fee, such as $10 or $15, or a percentage, such as 5%, of the minimum payment due, for example

2) Over-Credit Limit Fees: Each time you charge your card beyond the credit limit, the bank has the ability to impose a fee. It is possible that many of these aforementioned fees will gather simultaneously (in addition to interest charges) during the same billing period! Banks usually charge $10 or $15 for this fee or up to 5% of the amount on the exceeded limit amount.

3) Lost Card Replacement Fees: If you ever happen to lose your card, some banks might charge you anything between $5 and $10 for a replacement.

The most important thing to remember regarding balance transfer credit cards is to make all your payments on time and pay off the outstanding balance within the introductory time frame. Usually, there is no grace period offered up for balance transfers and unless you have snapped up an introductory 0% APR, interest will begin to accrue immediately. The calculation can get a little tricky too. Your initial repayments will first go towards clearing the balance transfer amount before making a dent in any outstanding balance created from recent purchases with the card. So if you want to avoid this mess, keep a separate card for balance transfers and another one for regular purchases.

When the Joyride Ends

You should be keenly observant of the expiration date of your promotional offer. Once it ends, you will be charged the normal rate of interest. All remaining purchase and balance transfer amounts will be subject to a much higher APR and significantly higher finance charges.

Your credit history will determine your post introductory APR on your balance transfer credit card. So if this APR is higher than the rate on your old balance transfer card, you could incur more expensive finance charges if you carry a balance from month to month. Just make sure that you transfer your balance to a new card that offers both a lower promotional rate as well as a lower ongoing APR.

Robert Alan recommends that you visit CreditCardAssist.com for more information on 0% balance transfers.

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

Debt Consolidation - Get 0% APR On Balance Transfers Today

Debt Consolidation made easy!

If you have alot of debt, or even a little, and are paying outrageous interest or any interest for that matter, you may want to apply for a new credit card with 0% interest on balance transfers. This is a very simple procedure that many people now use to avoid paying interest on their debt. There are numerous credit cards available that allow to transfer balances and receive an introductory rate of 0%, usually for 12 months, on any balance transfers.

In fact, many people apply for a new card about six to eight weeks before their their current offer ends. They then transfer any remaining balance to the new credit card and again receive 0% interest. This cycle can go on until the debt is paid off without having to pay huge interest rates. This process can save thousands of dollars a year, and help you to pay off your balances are a much faster rate.

If you are interested in applying for a credit card that offers 0% interest on balance transfers, you can do online and be approved instantly. The advantage of applying online is that many sites let you compare different credit cards to find out which one is best for you. Please take your time and compare some of the benefits of each card, some even offer 0% on purchases.

This strategy will help you in your debt consolidation efforts and is the best way I know to cut interest paid out each month. If you are looking to apply online, you may compare cards by visiting my website at http://augyz.ecreditdirectory.com and clicking on the balance transfer cards option.

This site offers over 100 different credit cards with a wide range of interest and rewards options.

Mike Agostino writes many articles regarding credit and debt consolidation and is a webmaster for a credit card comparison site where you can apply for 0% interest credit cards.

Get Interest Free Cash With 0% Balance Transfers

If you have a great credit rating and no debt, then you could be in line to make some money. And you can do it using the tools that credit card tarts have been using for years.

The Credit Card Tart System

Credit card tarts have used the incentives offered by lenders to their advantage for quite a long time. These incentives often consist of 0% interest on balance transfers for a fixed period of up to 12 months. Borrowers who have a debt apply for a new 0% credit card and transfer that debt to the new card. They make repayments as they normally would, but the balance owed is reduced since no interest is being charged.

When the incentive period is due to end, credit card tarts look around for a new 0% deal. They apply for the new card at least six weeks before the expiry of the old 0% deal, so they have plenty of time to transfer the outstanding balance onto their new 0% card.

This serial card switching allows borrowers to clear debt without paying any interest. Lenders have begun to fight back as they are losing hundreds of thousands of pounds' worth of interest. Many of them now charge a balance transfer fee of about 2%. However, there are still some fee free balance transfers available, which is good news fro debt-free consumers looking to use the system to make some money.

How To Earn Money On A 0% Card

To make money from a 0% balance transfer card, it is necessary to have a good credit rating and to get two new credit cards. One credit card has a 0% balance transfer rate. This must be a card that does not charge a balance transfer fee. The second allows credit card cheques at no additional charge.

The borrower can use the balance transfer card to transfer a sum of money onto the card that allows credit card cheques. The borrower can then write a cheque for that amount and pay it into a high interest savings account. This strategy only works if the interest earned is more than the amount being paid. Borrowers can use the same technique to get a low interest loan. Long term balance transfer rates are lower than standard interest rates on loans.

But Is It Legal?

There is nothing to prevent borrowers from using their cards in this way. As long as they make repayments on time and in full, there are unlikely to be complaints. It is also essential to keep credit card applications to a minimum so there are no red flags on the borrower's credit report. There's no reason why borrowers who stick to these rules and make payments on time shouldn't make a bit of money from their credit cards. And while they're shopping around for the perfect credit cards, it's worth checking out the other incentives as well.
Joe Kenny writes for the Card Guide, a UK credit card site, apply for a 0% balance transfer credit cards to clear your credit card debt today. Visit today: http://www.cardguide.co.uk/

Why A Balance Transfer With Your Credit Cards Makes Sense

Many people have made the mistake of willingly (or unwillingly) racking up hundreds, possibly thousands of dollars worth of credit card debt. Even if they decide to pay more than the minimum and snip the offending cards in half in order to curb their desire to spend, the damage has been done. The interest rates that will be applied to unpaid balances are usually sky high and the debtor, despite valiant efforts to gradually pay himself out of debt, ends up with escalating figures.

The best way to get out of debt is to simply pay off the balances of the offending credit cards in full, but unless you were born with a silver spoon in your mouth or have a million dollar trust fund at your disposal, this option would simply not work. The more plausible move would then be, to have all the outstanding balances consolidated and have this total amount transferred to a separate credit card ? just make sure that the special balance transfer rates are applied to your account.

This option may sound far out, but it is one of the best ways you can get out of debt. This happens because any outstanding balance you have on any credit card is wiped out, thus you will no longer be charged the standard interest rates. The amount that you transfer to the balance transfer card would be interest free, and the balance transfer interest fee that the new card will apply to your new account will be much lower than the usual rate, and will not be compounded.

Almost all major and minor independent credit card companies and those that are supported by banks and other financial institutions offer balance transfer programs. Apart from the significantly lower interest rates and the flexible payment terms, these credit cards further entice consumers to sign up for their program by offering other benefits, such as waived annual fee and possibly, the chance to earn rewards points when the card is used at affiliated partner establishments. If you are looking for a card company to transfer your outstanding balances to, you would need to gather as much data as you can and compare the rates side by side, so you can glean which of these services best suit your lifestyle and your finances.

If you have a lot of time on your hands, you can simply visit the banks nearest you and grab hold of their balance transfer leaflets. But if you?re on the go and have no time to sift through a lot of information, you can get the data you need by logging on to the Internet.

At present, there are several websites that give vital and relevant information to Internet users. There are sites that provide comparative data on myriads of products and services; from digital cameras, MP3 players, vacuum cleaners and even credit card facilities and promos. By visiting these sites, all the data you need will be presented in a very clear and concise way, without all the fluff and leaving you only with what is relevant.

By viewing sites such as these, you will be in a better position to evaluate the balance transfer offerings and you would be able to make a sound decision, based on facts and not on anything else.

http://www.cardratings.net/balance-transfer.htm

Credit card 0% balance transfer deals: the terms maybe increasing, but so are the costs

With summer holidays looming and credit card spending on the increase, many people will be looking to reduce their repayments by utilizing one of the many 0% balance transfer credit card deals. Consumers need to check for hidden charges which have been creeping in to credit card contracts over the past few months to prevent a group of financially savvy consumers called ?rate tarts? from taking full advantage of these offers by regularly changing between card providers so that they never pay interest.


While credit card companies such as Barclaycard are gradually increasing the length of their 0% period, transfer fees are becoming progressively more common. This means that while the interest free period remains in effect, no additional interest repayments are added onto the initial balance, there is a preliminary charge made based upon the total amount transferred. Until recently the average charge was 2% of the transfer balance up to a maximum of about ?50. This however is now changing, as MBNA recently boosted its minimum charge from 2% up to 3%, along with the maximum fee for balance transfers from ?50 to ?75. Online financial comparison site, Moneynet, has warned that, where MBNA leads, rivals might well follow.


Another change to the charging structure of many credit cards includes the removal of the transfer fee cap. Capital One along with several other providers who are offering some of the longer 0% periods, have decided the best way for this service to be funded by the bank is through taking the cap off the maximum possible charge for balance transfer fees. This means that on a ?5,000 balance transfer with a 2.5% transfer fee, there would be a ?125 charge upfront for the privilege of changing to the new card, where previously the total charge may have been capped at only ?50.


Despite these changes in the terms of various balance transfer cards, it is still usually worthwhile, but the consumer needs to look closely at all the overall costs and savings which are likely to be made, and whether a different deal such as a long-term low APR card, may prove to be better in the long run.


Richard Brown, the chief executive of credit card comparison site Moneynet, warned consumers against financial complacency, ?Consumers waste millions of pounds each year by not switching. While apathy and unawareness that they could save money are factors, financial providers also make it harder than in should be.?


With the personal finance market becoming increasingly complex and confusing to the consumer, the Financial Services Authority has realized the need to help educate the nations young, and encouraged, ?firms to provide clear information so that consumers can engage with the financial services market, make informed decisions and shop around?, and requested that, ?firms to treat their customers fairly?


At the end of the day, while there is assistance available in the form of financial publications, comparison websites, and financial advisers, it is unfortunately up to the individual to seek out the most appropriate help and regularly perform their own financial reviews in order to ascertain how to build a more secure financial future for themselves and family.



Disclaimer:

All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
 

Save Money With A Balance Transfer Credit Card

It is estimated that about a third of people fail to pay off their credit or store card balances in full every month, and therefore pay interest on the balance. If that applies to you, the chances are you could save money by applying for a new credit card which offers zero (or low) interest balance transfers.

The way this works is that you take out a new credit card offering such a deal and immediately ask them to pay off the debt on your old card. The balance on your old card then becomes zero, and the entire balance goes on to your new card instead, with its zero or low interest rate.

A number of card issuers offer these deals. Zero rate offers typically last from five to twelve months. If you are confident that you can pay off the entire balance during this time, they are a good choice for saving money.

If you think it may take longer to pay off the outstanding balance, a better option may be to apply for a card which offers a low rate for the entire life of the balance (i.e. until it is repaid). American Express? offers a fixed, low APR for the life of the balance with its Platinum card.

If you are currently paying interest on a balance with your current card, it makes sense to transfer your existing store or credit card balance to another provider. There are a few points to watch out for, however.

1. Check if there is a charge for balance transfers

Balance transfer fees are becoming more common as credit card issuers try to recover some of the money they lose by offering interest-free periods. Fees range up to 2% of the total balance. However, there are still several card providers offering free balance transfers.

2. Remember to pay off your balance every month

Even though the card issuer offers an interest-free period, you will still have to make the minimum monthly payments by the monthly due date, or you will be charged interest.

3. Avoid spending extra on the card used for the transfer

Most credit cards pay off balance transfers preferentially, so if you incur any other debts on the card, they will not be discharged until the entire transferred balance is paid off. That means any new spending will be ?trapped? on the card, accruing full interest charges. If you are using your new card to service a balance transfer, therefore, do NOT use it for additional spending as well ? use another card instead.

4. Switch again when the introductory period expires

If you have failed to pay off the balance completely once the 0% introductory rate for balance transfers expires, you could apply for another card and transfer your balance again. However, if you plan to do this you should always remember, in the month the 0% deal ends, to move the debt again to another 0% offer. This means you will need to apply for another card about six weeks before the introductory period ends. You will need to be well organized and remind yourself to do this.

5. Note that your credit rating may suffer

If you apply for a number of credit cards, especially at the same time, your applications will be noted by the credit reference agencies, and your credit score may suffer. The most important preventative measure is to spread card applications out. Do this and most people with reasonable income and no bad debts will be fine, though be aware that there will be a small risk to your ability to get competitive credit in future.

Having decided on the type of balance transfer deal you are looking for, do take the time to study the market and see what is available. Do not simply fill in and return the next credit card application form that arrives in the mail. Credit card comparison sites such as www.finest-credit-cards.com can make this easier for you by listing all current card offers for you to choose from, and also have a range of articles offering unbiased advice and information.

Nick Davis is the owner of http://www.finest-credit-cards.com, which aims to match you up with the ideal credit card to suit your situation. With details of all the leading card offers updated daily, plus informative articles to guide you in your choice, you will never pick the wrong credit card again.