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Saturday, 2 June 2012

Credit Cards 0 Balance Transfer

0% balance transfer credit cards can be extremely appealing if you're planning on consolidating your credit card debt. You'll pay no interest on your outstanding balances for the duration of the special rate offer - usually six months.

Instead of paying exorbitant rates, as you may be doing right now with your current cards, you can take advantage of a 0% balance transfer offer and pay no interest at all for that introductory period.

Effectively, this will mean every cent of your repayments will be reducing your card debt until that low rate expires and reverts to the higher standard purchase interest rate on that card.

0% Balance Transfer Credit Cards Don't Always Mean $0 Fees

Before you apply for your balance transfer card, take a bit of time to check what other fees may apply to your account. Even though you might be paying no interest, you may find your account has a balance transfer fee applied, or even an annual card account fee.

Shop around until you find a deal that offers low rates as well as low fees, or you could find the fees can add onto the debt you're working hard to repay.

What Happens After the Introductory Period?

While 0% Balance transfer credit card offers might sound great during the introductory term, what happens when it ends?

You need to know what the rate will revert to after the no interest promotional rate expires. For example, you might find that the rate will go up to as high as 20% after that first six months. If you still have any outstanding balance remaining, it will attract the much higher rate until it's repaid.

If you shop around, you can often find some credit card providers offering 0% balance deals that also offer very competitive rates on purchases too. It's the purchase interest rate that will accrue on your balance once the low rate period ends, so watch for this.

Longer Balance Transfer Offers

If you are seriously considering applying for a 0% balance transfer credit card, then you should take a bit of time to figure out whether you'll be able to repay your balance within that first six months.

Simply divide the amount you owe by 6 and this will tell you how much you'll need to pay each month to get rid of that debt before the high rate kicks in.

If you really don't think you'll be able to afford that amount per month, perhaps consider shopping around for a longer term offer, such as 12 months or 15 months instead. This will give you time to pay off your card debt while the rates are still very low.

See also www.creditcardfinder.com.au to looking for great credit card offers.

0 Balance Transfer Credit Cards

Zero interest or a 0 balance transfer credit cards are a great idea for most of the people, but let me tell you that there are pitfalls to each and everything. There are certain things that one should know before actually using such a card. Here are few tips to this:

1. Make sure that you know about the fees involved in transferring the card balance. A card with zero interest does not mean that the usage of the card is also free. Most of the companies make a lot of money just by offering a zero interest card as they charge the customer through transfer fee. Be already educated about the percentage fee which you might pay upon transfer and if there is a cap beware of card balance transfer that does not have a cap.

2. Find out whether the purchase you make using such a card are also zero percent interest as most of the times though transfer may be zero percent interest, but purchase can be costly. The best thing to avoid this is to have a separate credit card for new purchases.

3. The most important thing is to read all the terms and conditions before you actually want to use a card. Always read the fine print and be aware when exactly the 0% interest balance transfer deal ends.

4. The most common thing to be considered is that to avoid paying late as the companies do penalize their customers you if you ever pay late and then they raise your interest rate just because they pay late.

5. Make sure that you are avoiding transfer of your credit card often as this will affect your credit rating in future. There are credit companies who do not want to work with customer if they find that the customer will transfer money elsewhere as soon as the profit begins. It is a good idea to have a zero interest balance transfer as it is great in current financial conditions.

As all the companies offering such a card have different terms and conditions it is very important that you read all the terms and conditions before you actually accept the offer. If you are interested in such a card it is always good to know how the card works and how the card issuers make money through it as nothing comes for free. There are many people who are under an impression that by offering a 0 percent credit cards banks do not make money but they get more customers, but the truth is that the credit card issuers receive money on each and every transaction made by the customer.

The transaction fee varies from card to card as well as it also depends on the type of transaction. Generally the transaction fee is up to 1 percent per transaction. As aforementioned in this article as the terms and Conditions do vary from company to company few of the terms and conditions are common. The most common is that if the customer pays late then the zero percent offer ends and the regular interest starts. So make sure that you are aware of each and every condition before you use such a card.

Visit moneyinthewallet.com to compare 0 Balance Transfer Credit Cards and apply for best credit card that suit your needs today.

Friday, 1 June 2012

Balance Transfer Credit Cards

# What Is A Balance Transfer Credit Card?

Simply put, a balance transfer credit card allows you to transfer your card balances over from your other credit cards. Through this transfer you can save money on the APR. If you can consolidate all your balance to a single credit card, you can easily keep track of your debt.

# Why Should I Transfer My Balances To A New Credit Card?

Balance transfer credit cards, when used correctly, can help you save money. Most people keep a balance on one credit card, a separate balance on yet another, and pay a high APR to maintain both of them. Balance transfer credit cards have outstanding introductory APR's and the very best balance transfer credit cards will have a comparably lower ongoing APR as well.

Some of the best balance transfer credit cards offer an introductory APR of 0% for an extended period. Those people who are in a debt trap can take advantage of this offer. There are even some balance transfer credit cards which prolong the introductory ARR of 0% until you have paid off all the balance that you have transferred. Certain balance transfer credit cards have a fixed rate and the rate remains the same until you pay off the balance transferred. This type of card, often times lacks the introductory 0% APR offer.

# Things to Remember

It is not difficult find a balance transfer credit card, and in fact, you might have already been receiving solicitations from several credit card companies. But finding the best balance transfer credit card can sometimes be a murky affair. Understanding certain key elements regarding these cards can help you to choose the best.

Most people fall for the introductory offer given by the balance transfer credit cards. But this is only for a specific period of time. The period of time offered on these introductory APR balance transfer cards is often times determined by your credit history. So while selecting a balance transfer credit, keep a close eye on the introductory offer. Make sure that the introductory offer will work in your favor.

In some instances, some credit card companies will require an initial balance transfer along with the application for the card. Some people might not be comfortable with such a demand. The best balance transfer credit cards provide flexibility on balance transfers that will allow you to transfer balances at anytime during the introductory period.

Some of balance transfer credit cards might have a fixed rate introductory offer which is not a 0% APR on balance transfers, but is very low, remaining constant until you pay off the balance.

Most balance transfer credit cards have a transfer fee. Make sure that the transfer fee does not negate the financial advantage you are trying to get from the whole process. This aspect should be considered seriously by people who are planning to transfer balances from two or more cards. There will be no transfer fees incurred with the very best balance transfer credit cards.

You should compare your existing card, visit CreditCardAssist.com for more information on balance transfer credit cards.