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Sunday, 24 June 2012

Credit Cards With Balance Transfer Promotions

These days trying to wade through all of the credit card balance transfer offers can turn into a nightmare if you don't know what you are doing or looking for. But there are a few ways you can simplify the process to save time and also by educating yourself on what exactly will suit your circumstances.

To save yourself time you can use an online credit card service. These services sort through all available offers and provide you with a comparison chart which makes it easy to look through and find the deal that you want.

One of the reasons you see so many competing promotions for credit card balance transfer offer is that credit companies are trying to generate new customers and providing promotional deals has proven to be very effective.

However, whilst being aware that these offers are promotions doesn't mean you shouldn't take advantage of them, as long as you select the one that is suitable for your situation.

Zero and Low Balance Transfers

These type of offers look very appealing, but the person who gets the most benefit will be the one who can pay off, or substantially reduce their debt within the introductory period, which is generally very short around 3-6 months. By shopping around you may find longer periods for the low rate deals but not usually more than 12 months max. After the expiration of the introductory period the interest rate reverts back to the standard rate.

Life Balance Transfer Offers

This type of offer is ideal when you have a substantial debt and you need a longer period to pay it off. The interest rate is a bit higher than the previous offers but over a long period you certainly gain as opposed to paying standard interest rates. The advantage of life balance transfers is that you are not constrained by an introductory time frame.

Whichever balance transfer credit card offers you decide is best for you there are a few important points to remember so that you get the most benefit from your credit card. Always make regular payments every month even if it is only the minimum payment, defaulting can cause your offer to be withdrawn.

Don't use your card to make new purchases, these will not be covered by your low or zero interest offer. Instead they will be charged at the standard purchase rate plus the interest will continue to accrue on them until such time as your balance transfer debt is paid off.

You can visit www.creditcardfinder.com.au to compare balance transfer credit cards.

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