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Saturday, 9 June 2012

Best 0 Balance Transfer Credit Cards

How to Find the Best 0% APR Balance Transfer Credit Cards

What are the important points in choosing 0% APR balance transfer credit cards? Obviously, one of the most important points of these credit cards is 0% introductory APR period on balance transfers. Of course the longer the introductory period, the better. The majority of these periods are between three and twelve months (The period of a certain business credit card is 15 months), and many are six or twelve months. The period of some of these cards is determined based on applicant's creditworthiness and credit history, and may vary from person to person as interest may vary from person to person. So It's best to choose credit cards that have 0% introductory APR on balance transfers for 12 months or up to 12 months.

Annual fee cost you money but many issuers offer 0% APR balance transfer credit cards with no annual fee.

Then are 0% APR balance transfers really free? The answer is no, there is balance transfer fee. Unfortunately, almost all of these cards charge this fee. This is transaction fee for balance transfers. The fees of most of these cards are 3% of the amount of each transaction, and have a minimum. Some of them also have a maximum per transfer and they are mostly less than $100, and many are $75.00 or $99.00. Therefore when more than a certain amount of balance is transferred with these cards, the fee may be less than 3% of the amount of transaction. For example, when more than $7,500 balance is transferred to the credit card with a maximum of $75, the fee is $75.00 and less than 1% of the amount of transaction. Hence, the best 0% APR balance transfer credit cards may feature:
  • There is 0% introductory APR on balance transfers for (up to) 12 months.
  • There is no annual fee.
  • Balance transfer fee is 3% of the amount of each transaction with a maximum of $75.00.

3 percent of $2,500 is $75. So when more than $2,500 balance is transferred, these cards may offer significant financial benefits.

Credit cards that feature low standard balance transfer APR, no annual fee, and no transfer fee may help you save more money. Because with these cards you can transfer balances with high interest rate or default APR into low standard APR card with no fee. Furthermore, if you consolidate your balances into one no fee credit card, and then transfer your consolidated balance to the credit card with a maximum of $75 on transfer fee, your fee still has a maximum of $75.

However, fortunately, credit cards that offer 0% APR balance transfer with no fee do exist. But, this type of cards have decreased in number and are very rare. Currently the best cards of this type may feature:
  • There is 0% introductory APR on balance transfers for 6 months.
  • There is no fee for balance transfers made within the first 90 days of Card membership, or $0.00 for balances transferred within the first 30 days of account opening.
  • There is no annual fee.
With these great credit cards, you may make no fee 0% APR balance transfers.

Friday, 8 June 2012

Credit Cards Balance Transfer

What is a balance transfer? A balance transfer can be explained simply as a balance transfer! When a balance is transferred usually from a credit card, but possible from a bank account or loan to a credit card with a offer interest rate (usually 0%) for a set period. It does not have to be the entire amount. The card receiving the balance will an interest rate for a set term, normally 6 months, but can be 9 months or even a year. Take a look at the current balance transfer deals currently available. This will give you a flavour of the typical kind of deal available.

Should I apply for a balance transfer ?

It is important to remember that a balance transfer does not mean that the debt has gone away. It just means you are not paying interest on it. You will still have to maintain payments.

This may seem obvious but many people do not get this straight in their mind.

The basic criteria for getting a balance transfer is when you regularly have an outstanding balance after making your monthly payments. This is the amount you should look to transfer to another card. This will mean that for the period of the offer you will pay no interest on the balance (provided you make the minimum payments).

You should be very wary of taking up a balance transfer, if your overall debt is increasing. A balance transfer is not a green light to spend more money. The money you save should be used to decrease your debt.

What should I look for in a balance transfer ?

You need to be aware of the following when looking for a balance transfer card

Good things:
  • Length of offer period.
  • Offer Interest Rate.
  • The zero or low interest rate charged on the balance.
  • Possible transfers from loans and overdrafts.
  • On some cards you can transfer from existing loans and overdrafts and still get the offer.
Bad things:
  • Cut-off period for the balance transfer offer.
  • Hidden Charges on transfers.
  • Some banks will charge a handling fee on the balance transfer.

How long the offer is valid for ?

There is usually a cut off point from the account opening when the offer is no longer valid. Be very aware of this otherwise you could end up transferring a balance to a higher rate !!

What about new purchases ?

Unless there is also a 0% interest rate on new purchases then you should avoid making new purchases on a balance transfer card. This is because the banks will look to reduce the balance transfer debt quicker than the new debt. Provided your credit history is reasonable, there is nothing stopping you having several cards for different purposes. A good way is to have a card, which specialises in 0% on new purchases and another card for balance transfers.

What happens when the balance transfer period finishes ?

When the balance transfer offer period finishes the debt will revert to the typical variable APR. The lenders hope at this point that the cardholder will retain the card and some of the debt, so they can then start charging interest and making some money! So take into consideration the low interest rate credit cards. However, there is nothing stopping the disciplined credit card holder from switching to another balance transfer deal and closing the account. The cycle then starts again. Always allow 6 weeks to 8 weeks before the end of the offer period to apply for a new card. This means you can get the balance transferred to the new card before the lender can start charging the higher rate. You have to be organised to do this, but if you are it does work. People who regularly switch balances are know as card tarts.

The Golden Rules

There are three things to look out for with a balance transfer credit card:
  • As mentioned previously, the unsuspecting can get caught out when spending on a balance transfer card.
  • Maintaining regular payments. If you miss a payment you incur some penalty, so be aware. To be safe set up a direct debit.
  • The interest rate applied when the offer period finishes.
Good luck with your choice.

Thursday, 7 June 2012

Balance Transfer Credit Cards No Fee

Finding a credit card that offers no fee balance transfer is not as easy as it once was. Years ago, more than a dozen credit cards offered these deals. At the time of writing, only two credit card companies offer no fee balance transfers. Altogether, they offer only three credit cards.

If you are unfamiliar with balance transfers, let me begin by explaining the fee structure. With most offers, credit card companies charge three percent up to a maximum of seventy five dollars for every balance you transfer. (Some companies have even eliminated the maximum fee or raised it to as much as two hundred and fifty dollars.) For the purpose of this article, we'll work with the average balance transfer card. Below are three balance transfer situations that illustrate the costliness of transfer fees.

Situation #1: You have three credit cards, each with a twenty five hundred dollar balance. Each balance you transfer will cost you three percent of twenty five hundred dollars, or seventy five dollars. This will bring your total fees to two hundred and twenty five dollars. While this is still substantially less than the one thousand or more you would pay in interest, it does reduce your savings by twenty five percent.

Situation #2: You have a balance of five thousand dollars on one card and twenty five hundred dollars on another. Each transfer will cost you seventy five dollars in fees, bringing your total balance transfer expense to one hundred and fifty dollars. While this is a slight savings from Situation #1, you still lose a decent portion of your overall savings.

Situation #3: You have one credit card with a balance of seventy five hundred dollars. Because of the seventy five dollar maximum, your total fee will only be seventy five dollars, or one percent of the amount you transfer. This does help reduce you balance transfer fees to a reasonable level. However, why not avoid the fees altogether.

The way to avoid the seventy five to two hundred and twenty five dollars in fees you would incur when transferring a balance, opt for a zero percent interest credit card that offers no fee balance transfers. As their name implies, this type of credit card will save you on the annoying fees attached to most balance transfer offers.

There are a few things one must keep in mind about no fee balance transfers. First of all, most of these offers only provide a zero percent interest rate on balance transfers, not on purchases. Thus, if you apply for one of these cards, be sure to avoid making new charges on it. Secondly, be sure to make your transfers when you apply, as most no fee balance transfers require you to transfer your balances when you submit your online application.

Lastly, since you are not paying interest for a full year, don't feel rushed to pay off your credit card. Stash your money in a high yield savings account and earn interest on your money until the zero percent interest rate is about to expire. This way, you not only save a few hundred or a few thousand with your 0% balance transfer, you can also earn another four to five percent on your money.

For more information about no fee balance transfer credit card and to apply online visit www.smartbalancetransfers.com. You can compare special online no fee balance transfer deals and apply for approval.

Wednesday, 6 June 2012

0 APR Balance Transfer Credit Cards

There is a lot of interest in 0% APR Balance Transfer credit cards because of the tremendous savings possibilities they offer. You don't have to be an MIT graduate to understand that the 20% you are paying to a high-interest balance of $ 10,000.00 is two grand; and if the interest on your new offer was 0% APR, that money would stay in your pocket. It turns out, however, that not all 0% APR offers are the same.

Major banks, who are competing fiercely with each other at this moment, use a variety of enhancement programs that combine the idea of 0 % APR Balance Transfers and with other add-on bonuses. Consider the offerings of three of the largest credit card companies, how they are similar in terms of the basics, but are putting a twist on benefits:

1. The Chase Platinum Credit Card

Chase bank has been in the business for a long time, and this card is their standard offer. It has 0% APR on all purchases and balance transfers, provides free online account access, and does not charge an annual fee. The only question about this card is how long does the 0% APR last; and the answer depends on your credit.

If you have excellent credit, Chase will give you 0% APR on purchases and balance transfers for a full year. If your credit is good enough to qualify for the card, but not quite good enough to meet the higher standards, that period of 0% APR drops. Still, the opportunity to transfer balances and make purchases at 0% APR makes Chase a good choice.

2. The Miles Card from Discover

Another industry heavyweight, Discover, has 0% APR offers available for purchases and balance transfers. The Miles Card, however, adds the benefit of accumulating airline miles to help consumers choose Discover over everyone else. The company touts their 0% APR offer for its twelve month duration and the ability to include balance transfers at no interest.

The real inducement, however, is the 12,000 mile sign-up bonus and one-mile-for-one-dollar point award. Just to make the deal a little sweeter; there are no blackout dates for these miles and you can fly any airline at any time. You have to have good credit to get one, but the Miles Card from Discover may be a good way to save interest on purchases and balance transfers while building up miles for the next vacation.

3. Citi Diamond Preferred Rewards Card

This 0% APR offer from Citi not only gives you 12 months of interest-free funds and no balance transfer charges, it also has a points reward system that gives you redeemable points based on purchases. The program works by offering five reward points for every dollar spent on purchases made at supermarkets, drugstores and gas stations; all other purchases get one point per dollar. You get 5,000 bonus points when you get your card, which can be redeemed for a $ 50.00 gift card after your first purchase. Like the Discover card, you will need good credit to get this 0% APR card, but the initial bonus points and rapid accumulation of reward points for purchases of the basic necessities of life could make this just the card for you.

These days, the question is no longer about finding a 0% APR credit card or a 0% Balance Transfer card; the issue is how would you like that card--with extra months of interest-free money, airline miles, or other rewards such as incentive point programs? Any person who is currently carrying balances on high-interest credit cards should shop online and take a look at the 0% APR and 0% Balance Transfer credit cards from Chase, Discover, Citi and other companies. You may just find the right card for you.

Visit www.cardguys.com to compare credit cards.

Tuesday, 5 June 2012

Transfer Balance Credit Cards

One of the more interesting questions when dealing with credit cards is how a particular card allows you to transfer balance. Some people find the perfect credit card. It has a rate, grace period, and bonus point program they love. They use this particular card for everything to take advantage of these great qualities. The problem with good things is that they seldom last.

When a credit card radically changes its terms, that perfect card can become a terrible choice. In situations like this, it's time to pick a new card and transfer balance. The credit card companies often offer particularly good terms for a period of time with every intention of changing those great terms down the road. Credit card companies have learned that most of their customers won't be smart enough to take advantage of a transfer balance and will continue to suffer the terrible new terms.

As previously stated, credit card companies frequently give especially attractive terms as an introductory offer. Many savvy customers take advantage of this by the following financial strategy:
  • Find attractive reward offer
  • Transfer balance to the new credit card
  • Wait until introductory offer expires
  • Rinse and repeat
This is similar to the way people took advantage of long distance companies during the long distance wars. Many people had free long distance for years simply by being aware of what the companies were offering and making a quick phone call to switch service to take maximum advantage of this.

There are even people who make a profit from their credit cards. How:
  • They find cards that offer 0% interest on balance transfers for a certain period
  • They take a cash advance on the first card and deposit it in an interest bearing account
  • When the 0% interest period is close to its expiration, they use a balance transfer to a new card that offers the same deal
  • This allows these people to draw interest on that initial cash advance for years without paying back the initial amount
The credit card world is a truly competitive one. Credit card companies are working hard in the struggle to get and keep customers. Because of this, smart customers are taking advantage of the situation by switching frequently and always looking for the best deal. Knowing that an advantageous provision to transfer balance is usually part of getting a new card makes this serial credit card switching both easy and a great money saving strategy.

What's the best time to transfer balance on credit cards?, whether your goal is to find the most attractive points program, reduce your existing payments, or even make a profit from your credit cards, the right answer is always - NOW.

Monday, 4 June 2012

Best Balance Transfer Credit Cards

How to Find the Best Balance Transfer Credit Cards:

Finding the best balance transfer credit cards is not as difficult as you might think. In fact, there are a number of balance transfer credit cards to select from, making the most difficult part deciding which one of the great deals you should take advantage of.

# Balance Transfer Credit Card Interest Rates

Since you are looking for a card to transfer your current balances to, you most likely do not intend to pay the balance off in full at the end of the billing cycle. Therefore, you want a card with a low interest rate. Ideally, you should find a card offering a 0.00% introductory rate. The longer this introductory period lasts, the better. Be aware that the interest rate can go sky high on some cards after the introductory period is complete. So, pay special attention to what the interest rate will be after the introductory period is over. The best balance transfer credit cards will keep the introductory rate on your transferred balanced until you pay it off in its entirety.

If you do choose to get a balance transfer credit card that has a low APR for a limited time, be sure to pay off the balance before the introductory period is over. This way, you won't have to pay finance charges on the higher APR. Also, hold out for a balance transfer credit card with a 0.00% APR. With so many great introductory offers out there, you are bound to find one with a 0.00% APR that meets your needs.

# Balance Transfer Credit Card Fees

The majority of credit cards assess a fee to your card when transferring balances. With balance transfer credit cards, this fee should be waived. If the balance transfer credit card you are considering does not waive the fees, you should move on to a different card. There are too many cards out there that are willing to allow you to transfer balances for free - take advantage of them.

# Additional Benefits of the Balance Transfer Credit Card

There is absolutely nothing wrong with getting a credit card solely for transferring balances. If you do this, you should only transfer your balances, set the card aside, and use another card for your purchases. If, however, you want to transfer balances and still use the same card for your routine purchases, pay attention to the other benefits associated with the card. For example, some cards offer purchase protection, extended warranties, fraud protection services, auto rental insurance, travel insurance, and more. In addition to looking at the APR and balance transfer fees, consider the additional benefits associated with the card. Don't just apply for the first card with a 0.00% APR and free balance transfers.

# Don't be Fooled by Balance Transfer Credit Cards

In addition, to choosing the card with all of the right benefits, don't let yourself be fooled by balance transfer credit cards. Several have great introductory offers on balance transfers, but the interest rates on purchases are high. Be careful to find out what the interest rate will be on purchases if you choose to use your balance transfer credit card for regular purchases. You might be disappointed.

In addition, keep in mind that the credit card company can choose to apply your payments toward any portion of your balance that it wishes. Therefore, while you might have a 0.00% APR on balance transfers, you might have a 19.99% APR on purchases. Every dollar you send toward your credit card balance can be used to pay off the balance transfers before the balance for purchases is even touched. So, basically, you are paying off the 0.00% balance while the 19.99% balance goes untouched - and accumulates finance charges.

You can visit www.creditcardassist.com to compare and find out more about the best balance transfer credit cards.

Sunday, 3 June 2012

No Balance Transfer Fee Credit Cards

Looking for a 0% balance transfer credit card that does not charge a balance transfer fee? Chances are, you've had some trouble finding one. Over the past year, the number of credit cards offering no fee balance transfers has decreased dramatically. Additionally, the maximum fees have risen on many cards from $50 to $75. Fortunately, there are still a few credit card companies that offer no fee balance transfers. The trick is to find the right offer and to read the fine print.

The standard fee for balance transfers is 3%, with a maximum fee of between $50 to $75. Now, if you are transferring a large balance, let's say $5,000 the maximum fee of $75 amounts about 1.5% of the balance transferred. However, if you are transferring $5000 from three different cards, you will be charged 3% from each card. Thus, if you transfer balances from two credit cards with $1500 balances and one with a $1000 balance, your fees will amount to $120, or 2.4%.

Now, even with balance transfer fees, transferring $5000 to a 0% credit card from a credit card with a 15% interest rate will still save you over $600 over the course of 1 year. However, doing so with a no fee balance transfer credit card will save you about $750, or enough to buy a very nice dinner with a bottle of wine.

Clearly, moving balances from high interest credit cards to 0% credit cards is a great money saver. However, it is worthwhile to seek out a 0% credit card that offers no fee balance transfers, as the savings can add up quickly, especially when consolidating balances from multiple cards.

Now the hard part. Since credit card companies that offer 0% balance transfers aren't making money on interest, they look to get it from fees. Consequently, many companies bury the details of their balance transfer offers in the fine print. After looking over credit card offers from every major issuer, I was only able to find one company that currently offers no fee balance transfers. And the offer was buried very deep in the fine print. However, if you look hard, no fee balance transfer offers can be found.

For information about online applications to no fee balance transfer credit cards, visit www.smartcreditchoices.com. You can compare 0% balance transfer credit card offers and apply online for instant approval.