Playing the Balance Transfer Game

Every day when you go to the mailbox there it is: another offer from a credit card company to transfer your high interest account to a lower or 0% rate with a different card. Should you take this offer? Can you lift the nagging burden of monthly fees, compound interest, and a heavy debt load by transferring your balance? The answer is a resounding maybe.

There are pros and cons to playing the balance transfer game. And those who don?t know the rules of the game will lose without even knowing that they are playing. The main reasons to consider transferring your high interest credit card balances are: short-tem relief, emotional relief, and long-term interest savings.

Transferring for Short-Term Benefits

Lower monthly payments: If you currently owe $3,000 on a card with an 18% APR, then it would cost you $275/month to pay off your debt in one year. If you transfer to a card at 0% intro APR, you can pay off the same card with monthly payments of $250 per month. So anyone struggling to meet their monthly bill will gain some immediate relief. So how can this be bad?

As with any short-term fix, you pay on the other side. First of all, beware of any balance transfer fees. Some card issuers charge a service fee when transferring balances over to your new card.

What a Relief: The emotional component of credit card debt is very powerful. For many consumers the idea of finally getting out from under the debt they have been carrying is enough motivation to grab at any attractive offer they see. Unfortunately, most people who latch onto balance transfer offers for this reason find themselves trapped by the same lifestyle choices that allowed them to ring up debt in the first place.

One down side of transferring your balance is that most people feel so much better they are ?freed? up to go out and start spending again. Also, most consumers who transfer balances will only pay the minimum balance, so it takes them more time, and therefore more money, to pay down the balance.

Playing the balance transfer game is a lifelong hobby, as you must constantly look for cards with lower rates, and constantly switch credit card companies, rather than ever paying off the debt.

Long Range Results

Impact on Your Credit Score: Unfortunately, one of the least understood rules of the Balance Transfer Game is the Credit Score Penalty. Every time you apply for a new credit card your FICO score is lowered. This is the score used by credit card companies and mortgage lenders to determine the rates they will offer you. So you may be transferring to a lower APR today, but raising the rates you will be offered tomorrow.

Interest Does Matter: The question that you need to ask is ?How can I ensure I am getting the best possible interest rates today and in the future?? As shown in the example above, your interest rate will have a direct effect on the amount of money you pay out over the years. Just don?t be tricked into thinking that you are locking in a lower rate when you transfer that balance. Balance transfers do not affect future purchases, and they are only effective for a set period of time.

So the way you handle your credit cards today is a better indicator of your long-term payments that the attractive rate dangled in front of you today. By the way, the same credit card company trying to lure you away from the competition today will be checking your credit score in about six months to see if they should raise your interest rate.

Bottom Line on Balance Transfers

Ultimately the bottom line on playing the balance transfer game is buyer beware. It is a game that may offer some short-term relief, but also stiff penalties for the uninformed. The smartest players will make their moves based on information, facts, and a plan for protecting and improving their future credit dealings.

Steven Moy is a contributing editor for various websites related to credit and personal finance. You can see some of his work at http://www.apexcreditcards.com and http://www.creditservicer.com

0 Balance Transfer Credit Card Are They Worth It

It's a plastic ocean out there with numerous banks and financial institutions scrambling to sell you their 0 balance transfer credit card. And there are so many kinds of credit cards available in the market that a credit card user gets intimidated and perplexed about which card to choose.

The result is that he often chooses the wrong card and then regrets his decision when he's already neck deep in problems with his credit card account.

So, never pick up a 0 balance transfer credit card without considering some crucial factors. Here is a small guide that can help you decide which type of credit card you must pocket.

Guidelines to choosing a credit card

Ask yourself, "Why do I need a new credit card?" Is it because your current credit card carries a higher rate of interest, or is it because you want to use it exclusively for your business, or is there any other reason? Zero in on the reason why you need a new credit card.

Once you have the reason, you must check out what kinds of credit cards are available in the market. Here is a brief dossier:

(i) Regular cards/Business cards are cards that give you a spending limit based on your income tax papers. The business card is just like a regular card, except that it comes with some schemes that dangle carrots before you.

(ii) Charge cards are cards that are linked to your bank account and they charge your account the minute you swipe the card. You cannot carry forward a balance with a charge card.

(iii) Reward cards are credit cards that earn you points every time you swipe them and such points are redeemable for some goodies (air tickets, supermarket goodies, etc.) at selected establishments.

(iv) Then there are cards for people who have a bad credit history. These cards carry a low spending limit and a higher rate of interest. (v) Prepaid cards are another type of credit card that are mostly used by teens and some kids too. The parent makes a deposit and the card is valid until the deposit is used up.

(vi) Secured credit cards require that the cardholder deposit a certain percentage of the credit limit upfront into their bank accounts.

Once you have decided what kind of a credit card is right for you, do a comparison between different brands of cards. Compare their rates of interest (APR = Annual Percentage Rate) and also check whether they carry an annual fee.

What grace period or no-payment period they offer you, how do they calculate the interest, whether the rate of interest is an introductory rate, whether rates of interest will vary on cash withdrawals, billing cycles, penalties on balance transfers, and so on.

Voila, there you are! If you follow these basic guidelines, you will be successful in pocketing the right 0 balance transfer credit card that suits your needs. And that is the easy part,the difficult part lies in maintaining a credit card and keeping your credit history clean.

But, that's another story!

Del has successfully been in sales over 30 years. He believes you can lead a horse to water but cannot make him or her drink it. Unless you put salt in the oats. The salt is your why (or maybe what you do not want out of life). More helpful information and articles on http://www.0creditcard.eu

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. Visit today: http://www.cardguide.co.uk/

All About Credit Card Balance Transfer

In our daily lives, we often encounter problems which concern the family, work, business, and many other things. The most commonly encountered quandary is financial problems.

Most working professionals have credit cards, and sometimes these gives way to debt problems. The best possible solution for most of them is to jump at an offer which promises a lower APR, but you should be extra cautious in dealing with such offers.

A balance transfer simply means moving the balance from your existing credit card to another credit card. This is usually taken advantage by most people because of its very low rate of interest compared to the old card issuer.

There are companies which make credit card their business, and competition among them is becoming more intense. The need to stay in the market and stay competitive as ever, has brought about the introduction of balance transfer among credit cards.

You have to be cautious in any decision that you will make. A good choice is one that offers zero percent APR, but this is just an introductory offer. After a specified period, the interest rate charged changes. So before making an abrupt decision, be sure that you have read all the terms and conditions of the card issuer.

There are certain things to consider for a balance transfer with 0% rate:

- the interest rate after the 0% introductory rate expires
- understand the fees, terms, and conditions
- don't forget the 'fine print'; most people skip that part, but it is equally important to read that part unless you want to pay unexpected fees in the future
- simple reading is not enough, you must 'understand' all the terms, rates, conditions, and other important matters
- take note of the day when the introductory rate will end

Applying for a balance transfer can also save you money. All you have to do is to move all your card balances to the new credit card bearing low rate of interest to achieve utmost savings. Some credit cards offer cash back, points or rewards when you make purchases using your new credit card.

You can make a balance transfer with your bank cards, personal loans, gasoline cards, charge cards, and department store cards.

You also need to close your old credit card. Once you sign up for a balance transfer, you should continue paying your debt while the balance is still pending. Call your old credit card issuer once the balance transfer is confirmed, and make sure that you get a 0 balance from your old company. And finally, you need to close your account.

Once you have your new credit card, don't just make minimum payments. Pay more money each month until your balance reaches zero. You can also make extra payments, and remember to never be late in making any payments. Above all, use your card intelligently.

You should also be aware of the fees being charged for late payments, cash advance fees, flat fees, and fees for balance transfer, and fees charged if you exceed the credit limit.

Keep track of your expenditures so that you can minimize your bill. If you constantly make unnecessary purchases, your debt is sure to grow rapidly. Be responsible in any action that you undertake, and think of its consequences.

Aaron Ballantyne is the owner of a credit card website with links where you can apply for a credit card which best suits your needs.

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.

Balance Transfer Credit Cards: How To Benefit From a 0% Intro Rate

If you are considering combining your outstanding credit card balances into one place, you might be curious about the best way to benefit from a low introductory rate. The switch to a 0% APR card is not a difficult one, but you should have a plan in place to maximize your savings and pay down your principle debt.

Simple Steps

Even though it is a fairly easy process to consolidate into a 0% APR card, there are a few simple steps to ensure you don?t get burned in the process. First, if your goal is to make headway on your balances, find a card that has a 0% APR. Most balance transfer cards come with a 12 month 0% APR grace period. Others, instead of granting a grace period, will have one lower than average APR from the get go. The advantage to this second type of card is that you keep that low rate, whereas a typical 0% APR card will ramp up to a rate that is a little more common. The point of getting a 0% APR card is not to just give you immediate relief from interest payments. It is to give yourself an opportunity to pay down that debt without the added burden of paying the credit card executives? salaries. So, when you get this opportunity don?t fritter it away; even if you don?t pay-off your entire balance, your interest payments after the grace period will be greatly reduced if you make some progress.

Feel the Power?

?the willpower, that is. You can do wonders for your credit score and financial situation if you use your 0% APR card with discretion. However, if you make late payments, or only small payments while adding to the overall balance, then you could easily get yourself into trouble. The worst possible credit-card-induced feeling is to have a big balance creep up on you, and to realize higher interest rates are coming along for the ride. The single biggest pitfall to avoid is the temptation to sit on your 0% interest, and spend your money elsewhere. Take advantage of the opportunity and you?ll find yourself on sounder footing.

Have a Plan

The best way to go about this transition is to have a well thought out plan. You can approach this opportunity any number of ways; your personal financial situation should dictate your needs. It might sound trite, but studies show that those who formulate a well thought out plan before embarking on a new endeavor are much more likely to succeed. Sitting down and thinking about your goals, whether that be partial payment of the balance or payment in full, will help you create a more stable financial picture. You really can maximize this opportunity!

Please click here http://www.credit-card-surplus.com/balancetransfer.php to find Balance Transfer Credit Cards. Ed Vegliante runs http://www.credit-card-surplus.com , a credit card directory enabling the consumer to compare and apply for credit cards

What are Zero Balance Transfers?

Many banks offer zero balance transfers from your old credit card to a new one. Balance transfer for credit cards means transfer of your credit card dues from a high APR card to a low interest or zero interest credit card. In certain cases, balance transfer also involves transfer of funds from a bank loan account to the credit card for a specified period of time. Such loans have a low or 0% interest.

Most people desire a credit card with a low interest rate or APR (Annual percentage rate). However, if you have already taken a credit card with a high APR, you can still enjoy 0% APR by getting a balance transfer. Yes, the competition among credit card issuers and their desire of having more card members have resulted in number of offers where the card issuing companies makes attractive offers for balance transfers. Some of the balance transfer offers are 0% APR on balance transfer, no interest balance transfer or offer for credit balance transfer rewards.

Usually balance transfer is undertaken when there is an outstanding balance on credit cards even after making regular monthly payments. This amount is transferred to another credit card without inviting any interest for the period of offer. Before you avail 0% on balance transfer, keep in mind that you should have at least made the minimum payment due on your credit cards. However you should not make balance transfer a habit if your debt is increasing.

Applying for Balance Transfer

Once you have created an atmosphere of trust with a favorable credit history that you can apply for a no interest balance transfer or balance transfer with 0% APR credit. Normally, you will get a 0% APR on a balance transfer for a maximum period of one year. If you are interested extended duration for 0% APR, you can avail offers such as Chase Platinum Card offering 0% interest up to one and half years. If you maintain good credit and have organized yourself well you can get credit balance transfer rewards moving from one card to the other and closing the account before the lender starts charging higher interest.

Avoid Default Rate

While going in for a no interest balance transfer you must look into the various benefits associated with it. A 0% APR on balance transfer would be the most desirable with a long period of offer. You should also be cautious about any hidden costs and the handling charges attached with the balance transfer offer. However, if you falter on your monthly payments, you will loose the benefit of 0% interest and end up paying a default rate, which is usually a whopping 30%.

Though most of the credit cards will not penalize you for one late payment but if you are not having good track record, then even one late payment will invite the 30% interest. Until and unless there is no interest on the balance transfer it is not advisable to go in for new purchases with a balance transfer card. You can save yourself the trauma of being burdened with 30% interest by going in for automatic payments through your bank.

This is the best way to make the payment. You will save substantial amount of money on interest. You should also make it a habit of getting your credit report for a thorough scrutiny of any mistakes even though you may have been careful of not going into bad debt. With careful planning you could enjoy the benefits of the credit card without loosing your hard earned money in interest paybacks

Visit http://www.creditcardlounge.com/balance-transfer-credit-card.html to select your Balance Transfers Credit Card with 0% APR, no annual fee, and unlimited cash rewards. Need instant cash? Check out http://www.ez-loan.biz/onehour-instant-cash-advance.html for Instant Approval Cash Advance with one hour processing time.