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

A Guide to 0% Interest Balance Transfer Credit Cards

Introduction

There are hundreds of different of credit card companies now offering the same old deal: Transfer your existing credit card balances to us and you will not have to pay a penny of interest e.g. 0% interest for 3, 6, 6, 9, 12 months or sometimes even longer. This was and still is a very good deal, however as long as you are aware that after this introductory period you will go onto a higher rate of interest typically from 10% upwards.

Consumer and Market Trends

Many consumers got wise to these introductory offers and just before they were due to begin paying their higher rate of interest would transfer their balance to another credit card which would offer them a similar deal, e.g. 0% APR on balance transfers for another 12 months. While a lot of people do this, a lot of people can?t be bothered with the hassle and just keep their balance where they are and pay the higher interest on the card they have always been with.

Balance Transfer Fees

Over the last 2 to 3 years, the credit card companies have grouped together and tried to come up with ways of preventing consumers from transferring from their credit cards and to remain with them and pay the higher rate of interest after the introductory period. This is typically called the balance transfer fee and can range between 2 and 3%. This means that should you decide to transfer your balance to a new card with a new introductory offer, then you will be charged between 2 and 3% of the amount you wish to transfer. Although this is an additional charge was non existent on the market several years ago, it is still probably well worth paying compared to keeping your balance with your existing credit card company and paying a high interest rate each month.

Conclusion

Also, bear in mind, the introductory rate for any purchases you make on your credit card is normally much shorter, so you will probably pay interest here too, however it all depends how much you spend on purchases and how quickly you pay it off what you have spent on purchases.

The only real way to get credit and pay limited amount of interest would be to take out a card with a descent introductory offer, try to limit how often you use it for purchases and pay it off within the introductory period.

It can be easy to run up debt with a credit card if you just look on it as you would your bank account, however if you try to look on a credit card as you would a loan, then you will find it to be a good value for money financial product.

Graeme Dick is an Editor for Credit Cards 365 further UK Credit Card advice is available.

Credit Card Balance Transfer: The Best Offer You Should Look For

In today's society, people purchase all their everyday needs by using a credit card. You can pay for everything by using a credit card, such as your groceries, electric bills, and even gas for your car. Just imagine, by just having a credit card, you can purchase anything you want without having to carry cash around.

Basically, what a credit card offers is that you don't have to worry about not having the cash, worry about the credit card bills you have to pay after a month.

It is a fact that credit cards are a very useful tool that you can use today. However, owning a credit card also has its risk. Since people don't have to worry about purchasing things with a credit card, they tend to overdo it. Sometimes people get that urge to buy that new pair of shoes they really want but don't have the money for it. They tend to use their credit cards for it.

Because of this uncontrollable spending, people get into credit card debt. With a high interest rate credit card, this can be bad news. You will likely end up paying more on interest rather than paying the actual debt itself. So, one way to get rid of this debt is through credit card balance transfers.

Credit card transfer is one of the best ways and the easiest way to avoid high interest on your monthly credit card bills. If you have a number of credit cards, you can basically use the other credit cards to pay for your debt.

The first thing you need to do is choose the credit card with a low interest or zero interest rate. This credit card is the best card to transfer your balance to. With a low interest or zero interest rate, you will certainly save a lot of money and is the best way to get rid of the debt.

However, credit card balance transfer also has its drawbacks. Some companies charge a credit card balance transfer fee that can be as high as four percent of the debt. You should also make sure that you pay on time to avoid rise in interest rates. Also, you have to watch out for hidden fees, make sure that the credit card you are transferring your balance to doesn't have hidden fees that you will be required to pay for.

Certain low interest or zero interest credit cards has expiration periods on the low or zero interest rate introductory periods. It is important that you should learn when the introductory period will end to help your prepare for another credit card balance transfer to another card with low interest or zero interest rate.

In order to get the best credit card offers, you have to shop around for it. It is a fact that there are a lot of zero interest and low interest rate credit card offers, but you should also keep in mind that these offers are usually offered on a limited time only. Make sure you read the small print in order to understand the promo and know when the introductory period will expire.

As much as possible, you should always consider the credit limit on the card you are considering to transfer the balance to. When it exceeds the credit limit, you will likely pay additional charges and will also make the interest rate rise. These are the things you should remember when making a credit card balance transfer.

James has written many articles about the benefits of business and college student credit card offers and runs a website on locating the best credit card offers for your lifestyle

What to Look for in Balance Transfer Credit Cards

Balance transfer credit cards can be quite tempting. They offer a person the opportunity to ditch those nasty high interest rate credit cards, while usually throwing in some nice incentives to sweeten the deal. However, a person should be fully aware that there is nothing magic about about balance transfers. It's not like your debts just go away.

A very common reason that an individual considers a balance transfer credit card is that they want to consolidate all their credit card debt onto one card. This certainly is a convenience and cuts down on the number of bills they they have to pay. But be careful, when people do this they may actually end up paying more. The reason for this is that even though these cards often offer no or low interest initially, the free ride does not last forever. The rates will go up. So when the introductory period is over, the rates could be even higher than what they were paying before.

The best way to handle this problem is to pay down as much of the debt as possible before the rates go up. It is also vitally important that a person makes their payments on time. And do everything in your power not to add to that balance. Staying on top of payments and setting a plan to pay off the debt is the best way to ensure that a balance transfer credit card does the person good rather than harm. Balance transfer credit cards are a wonderful asset for those that have fiscal discipline.

Instead of dealing with multiple credit cards, with multiple interest rates, payment dates and fees, a person is dealing with one company. In the beginning they will usually get a low interest rate, many times no interest rate. This gives them a nice grace period to pay down their balance without the added fees. By budgeting out a plan that will get the debt balance paid down before a new, higher interest rate kicks in a person will have freed themselves from a large amount of debt.

Balance transfer credit cards can most certainly be a blessing, if a person knows how to use them responsibly and to their advantage. A balance transfer credit card is a powerful ally in eliminating credit card debt. By all means put it to work for you, not against you.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Balance Transfer Credit Cards and Balance Transfer Business Credit Card. Get the information you are seeking now by visiting http://www.Find-Cards-Now.com

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

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.

Balance Transfer - This Card Is Not Like The Other

As another way to get your business, many card issuers offer balance transfers. This can give you some leverage as a consumer and a opportunity to save some interest. Most credit cards offer a 0% APR for 6 to 12 months with no transfer fees. This is sometimes referred to as the teaser rate.

A balance transfer can be a good way for a you to consolidate debt. You can take your outstanding balance on one or two or more cards and transfer it to a card with a lower rate. Once approved, you would have all your payables on one credit card and essentially had taken two or more interest rates and transformed them into one lower rate.

If you want to carry on a balance, look for the credit card that offers the best interest rate or the annual fee offer. However, if you intend to pay for the credit every month, then look on the one that offers the lowest interest rate. Take note of the new rate after the introductory offer is over. Is it going to higher than what your have now? Are there any other fees involved? Make sure. Also does the introductory offer apply to balance transfers and purchases?

You can choose the credit card that offers the lowest annual percentage rate (APR). APR's could either be a "fixed" or a "variable" rate. Fixed rates do not change as the name implies but is higher. Variable rates changes depending on the economic trends. I usually avoid anything that's variable but you should explore your own options carefully. This is to be taken into consideration if you're deciding on carrying a balance and for how long.

Other factors involved in your decision for a balance transfer might be the rewards (reward points)or cash back a card offers. You may want to look into something you purchase often, like airline miles or gas rebates if you drive more than usual. Other cards even offer cash back for paying home utilities and mortgage, like the Citi? Home Rebate Platinum Select? MasterCard?. There is much competition for your money and if you take time to explore your options, you can turn some disadvantages on your present credit card balance back your way.

 Matt Yetter is webmaster of http://www.kingcreditcard.com. You can find other articles and information about credit and financing at http://www.kingcreditcard.com/articles.php