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.

Balance Transfer Tips - Maximizing The Benefits of Transfers

While transferring your balance from a high interest credit card to one with a low interest rate is easy, there are certain things that should be taken into consideration. The first thing you want to do is look at your current credit standing. If you have a good credit history, you should have no problem getting a card that has a 0% interest rate. Once you get this card, you can transfer over your balance from the high interest credit card to your new card that has a 0% interest rate.

By doing this you can save hundreds or thousands of dollars each year. When you decide to conduct a balance transfer, it is also important to determine how much you want to transfer. If you have a balance that exceeds $10,000, it is unlikely that you will be able to move over the entire amount to one card. Many credit card companies will give you a limit on how much you can transfer. Even if this is the case, moving over as much as you can will allow you to immediately begin saving money.

Some people become discouraged when they realize they can't transfer over the entire amount, but this is not the right attitude to have. Paying off a large credit card balance won't happen in one day, and it is important to take your time and use discipline. Another thing you will want to consider is the fee that may be charged if you transfer funds. A typical fee will be 3% of the total amount transferred, and this could be a large amount depending on the amount you want to transfer. Some banks have solved this problem by placing a limit on how much they charge in order to transfer a balance.

While transferring your balances can be a smart move, the best way to avoid debt is to stay disciplined and avoid putting more money on the card. It is important for consumers to realize that they, not the credit cards, are the problem. Properly managing your personal finances is the best key to avoiding debt. Many wait until they are in excessive amounts of debt before they try to do something to correct the problem.

They come up with ingenious ways to pay off their debts, but fail to realize the underlying cause of the problem. Consumers have to realize that credit cards are tools that can help or harm them. While they are convenient to use, not using them properly can lead to severe problems.

Joe Kenny writes for Card Guide, offering the latest information on credit cards in the UK, visit them today us to apply for a balance transfer credit card and start clearing credit card debt today.

Low APR Balance Transfer Credit Cards - Help You Save Money on Interest Charges

Balance transfer credit cards help you consolidate your credit card debt into one card, which enable you to save money on interest charges. The concept is simple enough, but you need to know how to move money owed from high interest credit cards to low APR balance transfer credit cards. These credit card companies also market these as a credit card with 'zero interest on balance transfer' as well as a 'cheap balance transfers credit card.'

First, assess your current credit situation. If your credit history has a consistent pattern of timely payments, you may well qualify for any of the low APR balance transfer credit cards. Transferring all or some of your outstanding balances to this card can help you to save thousands of dollars, annually, in interest charges. With planning and exercising discipline, you can bring down your large credit card balance. You can take advantage of the low APR, and apply all the money you save on the interest to the principal.

Many low APR balance transfer credit cards offer zero interest on balance transfers for a period ranging from six months to one year. They start to charge interest after the expiry of this period. It is imperative that you find out what interest they will be charging at that time. As of September 2005, most credit card companies typically charge APR of 10.24%, and this increases dramatically if you default on any agreement with your credit card company. You need to shop around to ensure that your cheap balance transfer credit card do not turn out to be expensive.

Many credit card companies offer zero interest on balance transfer, but charge a processing or a transaction fee. This could be as high as 4% of the balance being transferred. Look out for companies that charge a flat fee irrespective of the balance you transfer. Many companies charge a flat rate of $50 to $75 as processing or transaction fee.

Low APR balance transfer credit cards seem very attractive, but you need to look into some hype:

- Check the period of the low APR on balance. - Check the rate after this period expires. - Is there any balance-transfer fee? A flat 4% transaction fee means the higher balance you have the higher fee you pay. Look for companies charging a flat amount.

Balance transfer credit cards are indeed one of the best ways for you to slowly eliminate credit card debts due to high interest. The rest will be up to your discipline to wisely spend money on credit cards.

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Balance Transfer Cards - An Introduction

Most credit cards offer the balance transfer facility. Balance transfer implies transferring the outstanding or balance amount payable on one credit card to another credit card with a lower interest rate. Before you go ahead and opt for a new credit card, solely because of the balance transfer facility, keep the following pointers in mind.
<li>Low introductory rates on credit cards last anywhere between 6-12 months. Most of the major credit card companies have zero percent rates on balance transfers. However, one late payment is all the invitation your credit card company needs to increase the interest rates.
<li>Some low-rate cards levy a transaction fee, to avail of the balance transfer facility. Run in the opposite direction (without the credit card being offered) when you hear of a transaction fee.
<li>Ensure that your old credit card company has sent you a billing statement which states that you have cleared your outstanding balance. Make sure this tallies with the billing statement issued by your new credit card company, which confirms all the balance has indeed been transferred. Only then should you close your old credit line.
<li>Keep making minimum payments on your old card, while availing of the balance transfer facility, which may take anywhere between 2-4 weeks. Do not make the mistake of not closing the credit line on your old card. You might succumb to the temptation of charging credit to your old card and will soon be left with 2 cards and very high debt.
<li>Ensure that the rock bottom rate being offered is applicable to you also. Offers may boast of rock bottom rates, which shoot up by a large margin after an introductory period. You could qualify for a 5 percent initial rate which increases to 20% after 6 months. Some one else might qualify for a 4 percent initial rate that increases to 15 percent after 8 months. Drive a hard bargain for the best rate.

Other Balance transfer credit card features include:
<li>APR rate ranging between 9 - 11 % <li>Typically 3 other interest rates offered (Introductory, Monthly, and Annual). The Introductory rate is usually 0%, the monthly rate varies between 0. - 1.5 % percent, and the annual rate varies between 9-11%. <li>Minimum and Maximum credit limit <li>Cover against online fraud when purchasing on the Internet <li>Card replacement in case of loss <li>Customer service support 24/7/365.

Inspite of the host of credit card related features on offer, the best protection against getting sucked into the whirlpool of credit card debt is to reform your spending habits. Make a keen distinction between needs and wants before your next purchase.

Visit Smallbusiness-creditcard.com to get more information on credit cards and to compare features of balance transfer cards

Smallbusiness-creditcard.com, features credit cards from major card companies. Read our articles to familiarize yourself with credit card terms and compare various credit cards including balance transfer credit cards before you apply for one.