Balance Transfer Credit Cards - Which One For You

If you have any kind of existing credit card balances, balance transfer credit cards may be just the thing you need to reduce your credit card debt. They can also help you save money in other ways, too. Here are some ways that a balance transfer credit card can save you some money.

0% APR Interest

The first way it can save you money is that, hopefully, the new card gives you a 0% APR interest introductory offer for balance transfers. You will need to double-check the fine print on the credit card to be sure that this rate applies to balance transfers. Most often it applies to the interest rate on your purchases, and only on some cards will it apply to transfers. If you also get that rate of interest on your transfers, then be sure to notice how long that you get that rate for. The rate on balance transfers is often different than the length of the introductory offer.

The 0% APR interest generally applies to your purchases made during the introductory time period. This gives you great savings over that time frame, but be sure to pay off the balance each month - and on time, for the best savings. Any late fees take away any savings you get, otherwise, and you may actually end up paying more than if you had made your purchase at retail prices.

Balance Transfer Fees

Another thing you need to look for is to see if there are any fees associated with the transfers. Some balance transfer credit cards will charge up to a hefty 4% of any amount transferred to the card. While this figure may sound good when compared to the interest on the other card, keep in mind that many cards will not charge anything.

Rewards

Choose your balance transfer credit card on the basis of this option, too, since you can definitely save some money here, if you get the right card. Rewards come in many types, but if you get one that is geared to your needs (most expenses per month), then you will probably be able to save considerably. A card with rewards on it means that you get either discounts on future purchases, rebates or cash back. This amount of savings can certainly add up after a while, and can put a smile on your face when your bill comes each month.

Remember to compare a number of balance transfer credit cards in order to see what kinds of deals are available. Also, be sure to look at the various fees, so that you do not lose the value of your rewards. There can be many fees on a credit card, but by shopping around, you may be able to get one that does not have very many, or, has fees that you can avoid with prompt and full payments. Get as low of an interest rate on the card as you can for the time after the introductory time period runs out ? or get a new card.

Joe Kenny writes for the Credit Card Guide, offering the latest 0% credit cards, visit today for introductory 0% balance transfers and start clearing credit card debt today.
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Perils Of Repeated Balance Transfers!

The Balance Transfer Method used to provide an excellent system for reducing debt by transferring the costs of financing to the credit card companies or credit card issuers. However, since this practice quickly became widespread, certain measures where taken by credit card companies in order to discourage it.

Balance Transfer Debt Reduction System

The procedure is rather simple: By taking advantage of Free Balance Transfer and 0% APR Promotional Periods one can transfer the balance of high interest credit cards to these new cards and use the promotional period to pay as much money as possible towards the balance while it doesn?t generate interests.

Once the promotional period is about to end, the balance is transferred to another credit card and again, the consumer pays as much as possible so as to reduce the balance by taking advantage of the no-interest promotional period. It?s just like borrowing money without having to pay interests on it.

New Credit Card Stipulations

In order to discourage this practice, credit card companies have included new clauses that tend to make this procedure ineffective. For instance, some credit cards offer a 0% APR promotional period only for the part of the balance generated by new purchases. This makes transferring balances from one credit card to another highly inefficient unless the new card has a lower interest rate than the previous one.

Another common stipulation is that the 0% interest rate promotional period is only valid if the client makes certain amount of purchases during the month. This generates income for the credit card issuer and may or may not affect your finances depending on whether that purchases where already budgeted or not.

Other cards charge a certain amount for balance transfers during the promotional period. Thus, unless the money you save on interests is more than the fee you are paying for transferring the balance, you would be losing money by implementing the balance transfer debt reduction system.

Further Problems That May Arise

Another serious problem that may affect you by using this procedure can occur if because of too many credit card applications, your credit score drops too much and you can?t get approved for a new credit card. After the promotional period these cards tend to charge a high interest rate and do not offer low minimum payments.

So, if you are unable to pay even the minimum payment on your credit card, you?ll be defaulting and this will ruin your credit because credit card companies always report to the mayor credit bureaus and this delinquency will be recorded into your credit report. Thus, this procedure should be used only once when you feel certain that you?ll be able to take advantage of the promotional period by repaying the full balance. Otherwise, you should better stick to a low rate credit card.

Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. Smart tips and interesting articles on this subject and other financial related topics can be found at Speedybadcreditloans.com

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 Transfer Credit Cards - Zero Percent Cards With Rewards

Some of the very best balance transfer cards are available online. Here you will find a plethora of information that will connect you to loaners and credit cards. Most sites supply data that will cover all particulars relating to credit cards, including APR, introductory, fraud protection, balance transfers, rewards, and more.

The lender offers 0 percent introductory up to one year on purchases and balance transfers. This is an enormous advantage since most lenders will offer the 0 percent introductory on balance transfers only. The card is a benefit for those wanting a low ongoing APR. Another significant advantage of this card is you will not pay fees on balances transferred during the introductory period.

Fraud Protection This card has the crucial added benefit of fraud protection. In the last few years, millions of people suffered from identity theft. The card also includes online instant approval; however, you must have very good credit to apply. You will receive travel and accident coverage as well as protection on car rentals. The drawback is this card does not offer new card services.

Consider the following: 1) Fraud protection: What does it mean to you to have security, knowing your identity is protected? 2) Are rewards more important than identity protection? 3) Travel accident coverage: this benefit in itself is a great reward that will cover any points lost from not having the benefits of a rewards program. 4) Protection on car rentals: this is an insurance coverage, if you travel often-using car rentals.

The Citi Diamond Preferred is one of the many credit cards available. This card offers expires randomly, however sometimes the issuers will offer a 0% introductory APR up to 12 months on balance transfers. Unfortunately, some offers will not include 0% on purchases, or cash advances. This card however, comes with a rewards program where you will earn points redeemable on a variety of services and/or products. This will comprise travel, restaurant points, products and more. There's no annual fee on this card and there are no fees on balance transfers, another great feature, since most charges on balance transfers are about 3 percent or 4 percent. If you are searching for a credit card take time to apply while the offers last!

For more information on the benefits of balance transfer credit cards, Bert Wills recommends that you visit CreditCardAssist.com.

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.

The Best Balance Transfer Credit Cards: Get Yours Now!

Have you read your credit card statement lately? Do you know what your annual percentage rate is? How about your annual fee? You may be surprised to learn that your current card is not the bargain you once thought it was. If you are tired of paying fees and big monthly payments then shopping for a new credit card is a must. Some balance transfer cards are better than others; here are some things for you to look for with your new card:

Low Introductory Rate - If you are paying a high interest rate for your current credit card you can save yourself plenty of money by shopping for a card with a low introductory rate. Yes, there are still many balance transfer credit cards available that will give to you a rate as low as 0% for twelve months. By obtaining one of these cards you could save yourself hundreds of dollars per month and pay off your outstanding balance faster.

Transfer Fees - Balance transfer credit cards may charge you a small fee to make a transfer. Still, there are some cards that charge no fee on the initial balance transfer upon applying. It may be to your advantage to pay the transfer fee especially if you are going from a high annual percentage rate card to a low percentage rate card. Crunch some numbers to find out which card works best for you.

Save on Annual Fees - To secure your business, many balance transfer credit card issuers such as Chase and Citibank charge no annual fee. This can be a nice alternative for you especially if you have been paying $35, $50, $85, or more for your current card annually.

Get Rewards - A nice option for many consumers are those balance transfer credit cards that reward you for using that card. Depending on the plan, you can quickly accumulate airline miles, hotel stay credits, take a cruise, rent a car, accumulate points toward receiving free gifts, and more. Some cards, such as the Citi Diamond Preferred Rewards Card, will even give to you bonus points upon your first purchase of any amount!

Get Rebates - Like a typical reward card certain balance transfer credit cards will give to you cash rebates toward the purchase of a new or used car or toward repairs on your current car. The Citi Drivers Edge Platinum Select MasterCard is an example of one such card making this offer.

Perhaps the best thing for you today is that choosing a new credit card is to your advantage. Never before have terms, fees, and benefits been this good. There is no telling how long any offer will last, but if you act now you can obtain a balance transfer card that works best for you. To find your next card, searching online makes comparing all of the best credit card offers a breeze.

Ed Vegliante runs www.credit-card-surplus.com , a credit card directory enabling the consumer to compare and apply for credit card offers including Balance Transfer Credit Cards .