Credit Card Balance Transfers - Know How To Save Money

In 2004 Americans paid $412 billion dollars in finance charges to the credit card companies. If you contributed to this astronomical amount, you might be considering a 0% interest balance transfer to knock down those monthly payments. You also might think that this is a simple choice, that of course you should opt for a card that does not charge interest over any other card that does. Well, before you take up credit-card hopping as this month's attempt at exercising, there are a few things you should be aware of when it comes to balance transfers.

Balance Transfer Fees. Many balance transfers can cost you a charge of 3% to 5% of your balance. Although many cards will cap this charge at around $50 to $100, some do not, and your charge could very well negate your savings from the lower interest rate.

Universal Default Clause. This policy is practiced by many credit card companies and you need to be aware of it. Under this policy if the cardholder is late on any of their bills, cell phone, electric, car, what have you, the credit card company can instantly take away the promotional interest rate and charge a higher rate.

The Fine Print and the *. Be sure to scrutinize the fine print and watch out for any conditional symbols such as the asterisk*. Many zero % interest offers are only given to candidates who qualify, namely those with a clean credit history. Be careful when applying under these terms as you might not qualify for the zero % interest but instead end up with an even higher interest rate.

Additional Purchases. Find out if new purchases qualify for the zero% interest as this will have important ramifications. If new purchases do fall under the 0% interest then you can rest easy. If they do not, you must be aware of the consequences. Let's say you transfer $5,000 and then make additional purchases of $500. Any payments you make will go towards the $5,000 first and the $500 will instead accrue interest at the higher interest rate until the entire $5,000 is paid. That $500 might end up costing you more than you saved with the balance transfer. **It is important to note that the balance transfer fee usually counts as a new purchase.

But do not be discouraged, balance transfers are a powerful fiscal tool, if used properly. Follow these steps and you are sure to beat the house.

Destroy The Old Card. Do not give the temptation a chance. Like the arms of an ex-lover you are trying to leave, you do not want to be wrapped up by them...again.

Destroy The New Card. If your main goal is to pay down the balance, cut the new card as well and you will not have to worry about interest charges on new purchases. Simply pay down your debt at zero interest.

Pay All Of Your Bills On Time. Do not fall prey to the universal default clause. Pay all of your bills (phone, auto, mortgage, etc.) on time and you will retain your zero % interest.

Call The Credit Card Company. When your promotional rate comes to an end, before transferring to another card, call your credit card company and tell them you are going to transfer your balance if they cannot give you a low interest rate. It will not be 0%, but it might be much safer then jumping to a new card and repeating this precarious process.

This article may be reprinted on the condition that nothing is altered and that the links remain active. Rose Spencer is a Credit Risk Analyst who writes articles on credit management for a website offering news and information on credit cards. If you're looking for a Balance Transfer Credit Card visit these links and Apply for a Credit Card Today.

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

Interest Free Balance Transfers

A credit card is a big financial tool for the modern urban life. It is in simple terms a kind of cash which is more convenient to use and carry than providing consumer protections under federal law. As the economic pace is slackening and slowing down, a number of card holders are looking to make way for lowering their monthly expenses. Credit card balance transfers facilitate transfer of all the credit card balance to a single account of credit card. But the main factor that plays a very important role in making such decisions of transfer of balance to and from credit cards is the rate of interest that it charges.

An article published in Credit Cards Magazine says that the profits for the credit card companies were the highest in 2004. However, it is quite understandable that that the credit card market has reached a point of saturation. Therefore, it can be very well assumed that an account often gets closed for the opening of another one. So for the credit card companies it is always desirable to open a new account on almost every occasion and every opportunity. Most of these companies offer free interest balance transfer facilities for those interested to transfer their balance. Many of these are called 0% APR. But most of the time the zero percent interest does not last for a long time; these offers are generally put forward to attract the potential customers to transfer their balances to the new credit account.

But in the earlier days it was not so. Usually the rate of interest for such cases was at least 18%. Low interest rates and 0% introductory rates for balance transfers have been in process for not much time, but thanks to the competition of various companies, they all have set such interest free schemes.

Balance Transfers provides detailed information on Balance Transfers, Credit Card Balance Transfers, Card Credit Interest Balance Transfers, Interest Free Balance Transfers and more. Balance Transfers is affliated with Guaranteed UK Credit Cards.

Best Balance Transfer Credit Cards - Helping You Avoid Paying Interest

While considering balance transfer credit cards you must consider and understand that the expiration dates on balances that are transferred. You must also understand the APR and what fees you will pay after the introductory trial has ended. Ask the card lenders if the introductory rates will apply to the first transfer, or if the rates will only apply to balance transfers made throughout the introductory trial. You might also ask if the introductory rates are applied to balance transfers as well as purchases. It is also important that you understand the annual fee structure. Likewise, it is essential to know whether an annual fee will apply to the introductory period. Ask if the cards have any applicable fees on transactions.

Transfer Fees Asking questions upfront will help you to avoid pricey fees on balance transfers. Most balance transfer fees are around 3 percent; however, some lenders will charge 4 percent. Due to competition, credit card lenders' are working effortlessly to bring in new clients. Therefore, teaser ads are put up on the Internet to bring in new clientele. While the slicks claim that if you have good enough credit, you can take advantage of the low interest rates and 0 percent introductory rates, not everyone has the applicable credit that lenders will require.

Cash Back Rewards

A few of the cards, including the Chase Cash Plus Rewards Visa offer 5 percent cash back on any purchases made at grocery stores, drugstores, or gas stations for a limited time. Often the card lenders have stipulations though, i.e. only purchases at selected stores are applicable, which means if you do not shop at the store (s) stipulated in the agreement, you will not receive rewards. This card also offers an additional 1 percent cash back on all other purchases made. There are no annual fees, and there is a 0 percent introductory APR for up to 12 months on balance transfers and purchases.

Some of the balance transfer credit cards offered online include the Citi? Platinum Select. Some of these cards offer a 0% APR for up to one year on both purchases and balance transfers. However, the offers will expire; therefore taking advantage of the offers now can save you money. Many of the cards will extend an comparably low ongoing APR once the introductory trial has ended too. A few of the cards will offer advantages that the other card offers may not, like a free onlin, secured account management reports. So be on the lookout for these special features.

Features and Offers

If you're looking for security in balance transfer credit cards, consider the Blue card from American Express. With this card you get a 0 percent introductory APR up to 15 months and low rates thereafter. Still, the offers won't last long, thus taking advantage of the deals when spotted is in your best interest. There are no annual fees and it has a Smart Chip built-in, which provides security while shopping online, or viewing your online reports. Smart Chip is becoming one of the largest schemes for security, which is currently available throughout in the United Kingdom and will soon be available in the US. This card offers a free rewards program, but you must have excellent credit to get approved for the card.

For more information on finding the best balance transfer credit cards to help you avoid paying interest charges, Bert Wills recommends that you visit CreditCardAssist.com.

Finding the Best Balance Transfer Credit Card Offers

They're an alluring proposition. Like the mythic sirens luring sailors to the rocks, credit card companies offer nonstop mailings to perspective customers, trying to get them to transfer credit card balances. The credit card sirens offer all sorts of lures, such as low introductory rates, rewards programs, even zero percent interest--yet beware! The rocks of bad credit can be deadly to a happy financial life. So to protect yourself, be sure to follow these steps to knowing which credit card balance transfer options are the best, and which are actually traps in disguise.

The first thing you should do when considering balance transferring is to read the fine print of any offer. Therein lies the true intent of the credit card companies--whether they're offering fair ways to better manage your debt, or if they're trying to get you into a situation where they can make the maximum profit off of your misfortune.

Not to paint all credit card companies in bad light, because they are some that are honest and worth a look. To tell these good companies from the bad, look for the following in the fine print of an agreement. Check to see how long the intro rate will last. Is it just for four months before it jumps up to a high variable rate, or will you get 18 months at that low, fixed rate?

Then logically, you'll want to check what the rate jumps to after the introductory period is over? Will it be only a leap of a few percentage points? Or will you be in the 20+ realm of interest rates? The difference could mean hundreds, if not thousands, of dollars to you in payments.

Next, check what all the terms of the new card will be. Will there be an annual fee, and if so, how high will it be? What are the late fees for the card, and the penalty for overcharging your balance? And what happens if you do one of these infractions? Will you automatically and instantly lose your low introductory annual percentage rate?

And the million-dollar question is: What are the balance transfer fees? This is where a shady credit card company could make a killing off of your balance transfer. Some credit card companies, for instance, could charge as high as 4 to 5 percent for a balance transfer. Depending on how much you're transferring, that can really add up to a huge lump sum that is added to your balance. That leaves you to ask yourself--am I paying more for the transfer than I'm saving?

Joshua Shapiro recommends Find Credit Cards to find balance transfer credit card offers.