Credit Card Balance Transfer Offers

Indeed, credit card companies will do whatever they can to compete with each other. As one company thinks of better strategies, features, and other programs, another will conceptualize apparently better offers that greatly exceed those of its competitors.

Interest rates are the favourite points of competition of most providers. Each one has its own claim of what a better interest rate is. As soon as the enrolee has been convinced, he will then be encouraged to avail of the balance transfer offer. But are these types of offers really beneficial?

Balance transfers in credit cards happen when you transfer your bills from another credit card to another one which claims to impose lower interest rates.

However, in doing so, you must take extra precaution. While the procedure appears to be that straightforward, there are a lot of things that you have to take into consideration first.

First, you have to check if the low interest rates in the other credit card will, in fact, persist. More often than not, providers lure customers by giving a very low introductory rate. A few months after, higher rates will start to take effect.

Thus, before you decide to transfer all your balances to one credit card which apparently has lower rates, make sure you have read the fine prints in the documents being presented to you.

Oftentimes, the not-so-favourable conditions are contained in that portion of the form. Think twice before you do sign. Otherwise, you might end up paying higher than before.

If in case it was indicated early on that the low rates are, in fact, introductory and that they will increase after some time, inquire how much it will be and if it will remain to be so. When you know the exact figures, you can accurately weigh out your options.

Moreover, before closing your other credit cards and sticking to a new one, check if the low rates are for all parts of the bill. Sometimes, the low rates are only for those which are balance transferred. New purchases may have a different rate. If this is the case, you may avail of the balance transfer offer but use your previous credit cards for new purchases.

Some credit card companies also consider balance transfers as cash advances. Thus, the rates may be a lot higher. Inquire about the new credit card's classifications as well as clarify the titles of their various programs and features. One term may mean differently for two providers.

In addition, balance transfer may indeed have lower interest rates as well new purchases. Your inquiry should not end here, though.

You also have to look into the annual fees, late fees, finance charges, and other similar considerations. You may have saved a good amount by transferring your balance but you may end up paying higher fees than before. Weigh which one will be more cost-effective for you.

If in the end you have weighed your options well and decided on transferring your balance to another credit card, check with your old credit card if your balance with them has indeed been removed.

This is just to ensure that you will not be stuck paying two bills for the same purchases. Coordinate closely with your former and current provider to avoid any mix-ups.

Balance transfer offers may indeed be beneficial if reviewed carefully. You have to make sure, before making any decisions, that such is not another catchy credit card offer to guard yourself from.

Important Note:
View our recommended reference list, please visit this page: 0 Balance Transfer Credit Card Offers

Balance Transfer Credit Card Comparison and Reviews
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The Best Balance Transfer Credit Cards

What is the concept of a balance transfer credit card? To put it simply, making 0% interest balance transfers from one credit card to another is a great way of answering the age-old conundrum: how to have your cake and eat it too. You have nothing to lose -- but to gain you have a bundle of money that could have disappeared while you paid high interests on purchases and loans you've made on your current credit card(s). Sounds like an interesting proposition? It most certainly is! Balance transfer credit cards are there to save you in the hour of need. And then there are the best balance transfer cards. We call them best for a reason; flat zero percent interest rate being one of them.

The Basic Advantage of Balance Transfer Credit Cards

However, good things generally don't last for too long in this world, and 0% interest rate offers on balance transfers would usually be valid only for short periods like three or six months, after which, normal credit card interest rates kick in. Still, that is plenty of time to relax and breathe free! Not all credit cards have this zero percent interest-rate facility though; what most cards do offer is a significantly reduced rate of interest on balance transfers. Either way, a bargain is a bargain and we the consumers end up saving a little more than a paltry sum!

Cool Features of Balance Transfer Credit Cards

Furthermore, balance transfers need not only be made from one credit card to another, the best balance transfer credit cards can be used to pay off most types of financial debts. The bottom line is: you stand to gain from a balance transfer credit card whichever way you look. So look around for some good balance transfer offers on regular credit cards or for an exclusive balance transfer credit card, and go for one that seems to be the most suited for your needs. Also remember that the best balance transfer credit cards have attractive reward schemes to motivate you - their customer - to use their cards to the maximum capacity!

The Rationale behind Balance Transfers

Often credit card companies are detested by people for their seemingly exorbitant rates of interests. They are portrayed as financial leeches that suck the blood off us common folks at the least opportunity. That may or may not be true since all lending banks and credit card companies come under strict federal regulation and supervision. However, it is time we get back at them and rip them off left right and around, out of pure spite! What say?

Many smart people in fact come close to doing so by routinely getting new balance transfer credit cards that usually have a promo offer of a zero percent interest rate for the first year or so, and then they rotate the outstanding amount from one card to another ad indefinitum. Pretty neat! It may even look like a little con trick but it is perfectly legal and could be the most logical thing to do for any person trying to make ends meet. Aren't we all, by the way? In this turbulent chaotic world, most of us are constantly grappling with a makeshift existence, and it makes sense that we shift our debt from one point to another if in the process we also happen to save plenty of dollars!

Choose Your Balance Transfer Credit Card

So what are you waiting for then? Do your balance transfer now! Oh sorry, not right away, because you need to do some research and shopping around first. Although you may be rest assured that there is, by and large, no deviousness involved in the offer of zero percent or marginal interest rate balance transfer, you have to be alert while ordering a balance transfer to an existing card or while picking up your new balance transfer credit card from among a plethora of names and choices available.

To begin with, you may have spent irrationally on your credit card, but that is not the point; at least now you can make a very rational choice by carefully assessing and comparing the balance transfer credit cards available. The keyword is "best," for nothing less will do!

Basically you have three criteria to take into consideration here, namely, the annual fee of the card, the transfer fee, and the rate of interest. The best balance transfer credit cards will as zero all these with a few additional features and incentives to boot! If you find any such, make merry! If you don't, make an apparent compromise and go for the second best, but still second to none, and therefore still the best! Transfer your balance, gulp down a cake and take ample rest.

Bert Wills recommends that you visit CreditCardAssist.com to find out more about the best balance transfer credit cards.

0% on a Balance Transfers Will Not Last Forever

Have you ever been attracted to a credit card because it promises you an outstanding interest rate that seems just too good to be true? Most of us have at some stage jumped for one of these attractive offers. There are a growing number of credit card providers out there that will offer you 0% deals on either balance transfers or purchases, and sometimes they just seem too good to resist.

Particularly if you have a large outstanding credit card balance that you are currently paying a lot of interest on, these offers will be very tempting. In fact, many 0% balance transfer offers will save you hundreds of pounds on interest that you would otherwise have had to pay on your credit card balance. But no matter how attractive such offers may appear at the time, you should only ever take on another credit card if you have taken the time to review your finances and are satisfied that it is the right financial move for you at this time.

To look at a typical example, suppose you have one thousand pounds outstanding on a credit card that charges 10% APR. This means that over the course of a year, this balance will cost you 100 pounds in interest charges. Now suppose you find a credit card that offers you 0% on balance transfers for six months. Well it is pretty obvious that 0% is better than 10 and if you were to take up this offer, assuming there are no balance transfer fees, then how much will you have saved over the six month interest free period? The answer is 50 pounds. However, what will the interest rate revert to once the interest free period has come to an end? This is something you should be thinking about before you opt for the credit card, and not when the interest free period is about to expire and everything is more urgent. Suppose, for the sake of our example that the interest rate reverts to a rate of 25%. This means that over the next six months you will pay ?125 in interest.

While this is a very simple example, it illustrates an important point when it comes to 0% balance transfers. In the example above if the customer had stayed with his 10% card, he would have paid ?100 in interest over a 12 month period. In the same period, by opting for a 0% balance transfer for six months that then reverted to 25%, he ended up paying ?125.

The point to remember is that just because a credit card offers you 0% does not mean it is the best deal out there. Look at the long term rates that the card will offer you, and compare these to the rates you are already getting from your credit card. If your existing rate is better than the rates that you will get from the new card once the introductory offer expires, then maybe you should remain loyal to the card you have.

So while this is going on you will not be spending on the new credit card, but you will be safe in the knowledge that you are saving the interest payments on the old debt.

Peter Kenny is a writer for creditcards-gb
For additional articles and an extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.ukand http://www.creditcards2go4.com

Free Credit Cards and Balance Transfers Allow You to Manage Your Debt Wisely

If you're being squeezed by the high interest rates and fees charged by your credit companies, it might be time to rethink your financial strategy. In today's marketplace, credit card companies compete for your business. You can take advantage of free credit cards and balance transfer options to make purchases, manage your credit card debt, and avoid paying high interest rates and fees.

The first key to taking charge of your credit card debt is to understand the options available to you. Free credit cards not only offer you a cushion of financial security, but when used wisely, they can also help you lower or erase the interest rates you're currently paying. In effect, the money you spend each month on interest charges becomes money you can use to pay down your debt or to spend as you see fit.

As an example, if you have a $7,000 balance on a credit card that charges 18 percent APR, and you're paying $210 (3 percent) per month, it will take you over 18 years to pay off the debt. In the process, you will have paid $6,698 in interest!

If, however, you took advantage of the balance transfer option on free credit cards with a 2.99 percent APR, your $7,000 debt will be paid off in a little under 11 years, with a total of $611 paid in interest charges. That's a savings of $6,087!

When you receive offers of free credit cards and balance transfer offers, it's important to read the fine print. Sometimes, the initial low interest rate will jump to a high interest rate after six months. Other times, though, the low interest rate will be maintained throughout the life of the loan.

Increasingly, consumers are seeing the wisdom in using free credit cards and balance transfer to manage their debt. While it takes some time and diligence to keep track of the various offers and to use balance transfers to your advantage, the benefits are well worth it.

Balance transfer is also a good tool to use if you've gone over your credit limit on one of your credit cards. Many credit card companies charge outlandish monthly fees when the cardholder exceeds his or her credit limit. By anticipating this problem and having free credit cards available that offer balance transfers, you can easily transfer a portion of your initial credit card debt to a second card, thereby avoiding penalty fees.

Free credit cards and balance transfer options are important components of financial health, and can allow you to manage your debt painlessly.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Visit this FinancingInvesting Website and Majon's FinancingInvesting directory.