Pages

Saturday, 16 June 2012

Free Balance Transfer Credit Cards

Human nature is such that the term 'free' can have a drastic effect. We all think that just because something is termed 'free', it comes for free. You must have heard of the saying 'there is no such thing as a free lunch'. It is very much true, especially in the financial world.

Many people can't control themselves while spending money and end up with huge debts. So, what do they do next? They take more loans out knowing very well that they can't repay them. Well, the future can't be much worse than that. This is where free balance transfer credit cards can help get you out of difficulties. If you are someone who has bad debt, then you might want to spend some time reading this article.

Facts that you need to look out for in Free Balance Transfer Credit Cards

So, how do free balance transfer credit cards work? Well, it is quite simple. These credit cards have a small annual fee that you have to pay at the end of every year. You will be pleased to note that these credit cards come with excellent rewards. If you are not going to use your credit card often, then you will want to go for the one that's going to work best for you.

You need to spend a lot of time reading the terms and conditions. According to law, your credit card company must report all the fees that you will be paying. Here are some facts that you need to look out for before deciding on a free balance transfer credit cards.

# Duration

You have to look out for the length of time for which the free transfer will last. Free balance transfers on these credit cards come in periods of 6 months, 12 months, 24 months or even for life.

# Restrictions

You must be aware of restrictions. Many credit card companies will automatically increase your interest rate if you default on your payments.

# Allowable transfer amounts

You also need to know how much you can transfer over. It varies depending upon your bank and on your credit. If your credit is bad, then you might have to settle on a small amount. For those of you with good credit, and who like spending, think twice. Only use the amount necessary.

The best way to find out whether a particular free balance transfer credit card will work for you is to know the pros and cons. Once you are aware of both the good and the bad points, it is easier to make the final decision.

Advantages of Free Balance Transfer Credit Cards
  • Zero percent interest for a limited time: the greatest benefit of this product is that it comes with zero percent interest balance transfers for a limited period of time which usually lasts between 6 to 12 months.
  • Debt consolidation: This product is very useful for those with bad debt. Even though you may not be able to pay off the entire credit card balance before the interest period ends, it reduces your debt considerably.
Disadvantages of Free Balance Transfer Credit Cards

Like all products, free balance transfer credit cards also have their drawbacks. They are as follows:
  • They are only for debt consolidation: you need to have self control while spending money. Remember that this product is useful only for reducing your debts and not for spending.
  • Zero tolerance policy: You should not miss payments as your credit card company may cancel the agreement and up the interest rate. This is something that you should be very careful about.
Since you now know all the facts about free balance transfer credit cards, you can make your decision wisely. This product is very useful for those of you with bad credit and who are facing huge debts. So, act responsibly and get the right free balance transfer credit card to suit your needs.

Friday, 15 June 2012

Zero Balance Transfer Credit Cards

How To Use Zero Balance Transfer Credit Cards Wisely

Many credit cards offer a variety of choices to transfer a balance from another card at zero percent interest for a fixed time. These options can save money, but you need to watch for any hidden charges possible.

The offer of 'free money' is powerful. Years ago it was not impossible to make money from a zero percent credit card balance transfer deal this way: By taking and transferring the money, putting it on deposit to earn interest. Unfortunately, many credit card companies have decided to make changes, making it almost impossible for many people to have money by this way of process. But the zero percent balance transfer deal can still help save a lot of cash, in comparison to carrying the balance on a credit card that pays interest.

For a much-awaited spending, you can get a zero percent loan; at the same time, it also interest-free on purchases credit card. However, the point in this article is what the balance transfer card truly has to offer.

Normally only accessible to new cardholders, the lender takes out a CC and presents a few more cards that they would like to pay down with cash borrowed from the new card. Apparently, if the cards charge eight to twenty percent and the new card offers zero percent interest rate, consider this a great deal. But then, the lender must be on the lookout for numerous tricks and cheats that make a zero percent credit card balance transfer charge more than it offers you.

A handling fee of two to five percent is quite common in zero balance transfer cards. If you borrow a hundred dollars on such card with two percent of its handling fee, in theory, you have to pay $102. The most important thing to remember is this: Always ask to pay the handling fee right away.

Or else, the lender ends up paying the handling fee's standard interest instead, which may be up to twenty percent. Many lenders don't realize that the interest fee only applies on the loan itself. As soon as the fee starts accumulating interest, the only way for you to stop paying this is to repay the whole loan, along with its accrued interest from the handling fee.

Repayments are nearly often applied to pay the balance which basically attracts the lowest interest, to expand the credit card company's profits from the lender.

Handling Fee and the Short Loan Period

An annual loan at 0 percent interest with a handling fee of two percent would seem like a loan at two percent. However, a lot of offers are only for half a year or nine months, making the 'best interest rate' loan five percent or 8 percent, respectively.

Putting Repayments to the 0 Percent Loan Prior to Any Purchase

Many zero percent balance transfer credit cards typically charge purchases at a fixed interest rate which is always high. Sadly, repayments made to the credit card are mostly to get done with the cheapest loan first.

If, for example, you put a $200 purchase on a balance transfer card which carries $1500 at zero percent, and the whole $1500 loan would have to be repaid FIRST before you get to pay off what your loan really was; the purchase apparently continues to accrue interest until the interest-free loan IS actually paid off.

The use of a zero balance transfer cards for any loans is only fit for the well-organized and financially smart. Usually, this type of deal offered by many credit card companies is being offered to new cardholders, and these same cardholders mostly fail to comprehend the math which is always presented as simple, yet complicated once the 'increased' interest rates start to appear in their bills, and leaves them wondering.

Thursday, 14 June 2012

Low Balance Transfer Credit Cards

Are you finding that the interest rate on your current credit card debt is a bit too high? If that is the case, you should consider transferring your debt to a low balance transfer credit card. Low balance transfer credit cards are useful when your debt balance is going to take more than a couple of months to be paid in full and you don't want to pay high interest rates.

By paying a lower rate of interest you can reduce your debt balance faster since a lower proportion of your repayment is being allocated toward the interest. For many consumers this reduces the pressure of trying to meet high repayments, but it is important to remember that low balance transfer cards are often only available for a limited period, so it is in your own interests to attempt to pay the debt within the low balance time frame and before the low interest rate reverts to the standard rate.

If you decide that a low balance transfer credit card would suit your needs it is worthwhile shopping round to look at the different deals on offer. These can vary from 0% interest for periods up to 6 months or a low rate interest offer that is available for 12 to 15 months.

But you need to weigh up all your options first as the 0% is not always the best deal for you just because it is the lowest interest. If you are confident that you can pay your debt in full within the 6 months then by all means take advantage of the 0% offer but if you can't meet that deadline you may find the interest rate that applies after the 6 months is higher than you bargained for.

When you know that your debt can take up to 12 months or longer to pay you would be better advised to look at the low interest rate option, which over the long term will give you more Linksavings on the interest you pay.

You will also need to check what fees if any are payable with the balance transfer offer, the most common ones being an annual fee or a balance transfer fee. If these are exorbitant they might well exceed any savings that you are hoping to make in interest so it is a good idea to do your math first, before you make any final decision.

You can visit www.creditcardfinder.com.au to know more about low balance transfer credit cards.

Wednesday, 13 June 2012

0 Balance Transfer Fee Credit Cards

Pay off Debt with 0% Balance Transfer No Annual Fee Credit Cards

Consumers and companies share a very interesting relationship. The former seeks more value for each purchase; the latter sprints to meet this demand. Today, toothpaste comes with pencil boxes and toys. Pepperoni pizzas are delivered along with video rental coupons. The same is true of credit cards, as well. To keep an edge over the competition, credit card companies are now offering plastics with more benefits and services! One such card is the 0% balance transfer no annual fee credit cards.

Balance Transfer

Availing of a card offering a balance transfer is a wise way to reduce credit card debt. The "balance transfer" in 0% balance transfer no annual fee credit cards refers to the process of shifting the balance from an old card to a new card. After this is done, cancel your old card so your credit score is not harmed. You will then be given a grace period, during which you should pay off the debt. You will receive a special rate for the transferred balance. This rate is typically valid for six months to a year.

The best thing about special balance transfer rates is that they let you pay off your old balance without interesting piling up. Note that the best time to open a new account with a balance transfer feature, is when the old card expires. This lets you to enjoy a new grace period with low or no finance charges.

Zero APR

APR stands for annual percentage rate. Do not be alarmed by this term. Simply put, this is the yearly amount that you pay for obtaining credit. The APR was created so people could compare the cost of various loans. Additionally, lenders are required to disclose the APR that they charge. This makes it more difficult for them to charge mysterious or concealed fees. The grace period on 0% balance transfer no annual fee credit cards varies. Usually, however, it runs for one year.

Annual Fee

A credit card annual fee is a charge you have to pay yearly for using a particular credit card. This fee is sent directly to your credit card statement. Like the 0% APR on balance transfers, it is wise to select a credit card without an annual fee. One example is the 0% balance transfer no annual fee credit card. The less money you have to dish out on various fees and interest rates, the more funds you can course to your purchases.

Cards That Have More with Less

Several 0% balance transfer no annual fees credit cards exist. They include The Chase Platinum Visa Credit Card, the Citi Diamond Preferred Card, and the Bank of America Rewards American Express Card.

Too Much of a Good Thing

The concept of using balance transfers to save money when paying off debts is attractive. However, constantly transferring balances when the introductory APR becomes invalid can cause several problems. You could have difficulty borrowing funds in the future. After all, you constantly avoided paying interest by frequently transferring the balance. Secondly, if the low APR rate applies to a transferred balance and not to purchases, you could end up taking one step forward and two steps back. Lastly, if at some point you are not approved for new balance transfer credit cards, the interest rates on the transferred balance could skyrocket.

There is no denying 0% balance transfer no annual fee credit cards are useful. Like most things in life, however, they should be used in moderation. When used wisely, 0% balance transfer no annual fee credit cards can pull you out of a quagmire of debt to financial freedom.

Curious about 0% balance transfer no annual fee credit cards? Visit CreditCardMonitor.org to learn more about it and other versatile plastics, such as business credit cards cash back and gift credit cards.

Tuesday, 12 June 2012

Zero Percent Balance Transfer Credit Cards

Tips For Choosing Zero Percent Balance Transfer Credit Cards

In my opinion, some of the best credit cards out there are those that allow you to get 0% balance transfers. If you're unfamiliar with these cards, I wanted to show you how you can take full advantage of them. Just because you're going to get 0%, doesn't mean that you're going to get it for the life of the card.

I wanted to list a few things that you must read into, before you sign over an application.

1. Read the fine print
Credit card companies love to mislead people here and there. This is why it's important that you read the fine print. How long is the APR on your balance transfer going to last? Is it going to last 6 months? 12 months? etc? Many will last a maximum of 12 months.

2. Be aware of penalties
Some companies will cancel your balance transfer if you miss a payment for example. Let's say that you have 12 month balance transfer. Let's say that your terms state that if you miss a payment, they can cancel on you. You're going to know these things.

3. Is there a fee?
Many people think that they can just sign up with their card, transfer a balance and they are done with it. What I have found is that there are cards that will charge you 2 or even 3% of the balance. What this means for you is that if you transfer over $10,000, you may have to pay $300 on that for a fee. Read or even ask about this. It's very important!

4. What is the max?
Let's say that you want to spend or transfer over $15,000 because of a car payment. You're going to want to make sure that you can transfer over this kind of money. What you can do is simply ask the credit card company to see if you can get approved for something like this.

There are a lot of balance transfer cards out there and you're going to find that this is what a lot of credit card companies will do to pull you in.

So, to recap what we just talked about, this is what you're going to need to do.
  • Read the fees - Make sure it's worth it.
  • Want the card for the future - Make sure it makes sense.
  • Look for reviews - Do other people like it?
See also www.findcashbackcards.com to find some of the best zero percent balance transfer cards on the market today. See which one is going to work for you.

Monday, 11 June 2012

Credit Cards With No Balance Transfer Fee

How To Get Credit Cards with No Balance Transfer Fees?

Credit cards with no balance transfer fees are probably not the first option people consider when they are in a financial jam, but they should be. Why would anyone in their right mind pay hundreds of dollars of interest every month if they don't have to? Whatever the reason, most of us have done it. Perhaps the credit card dance of robbing Peter to pay Paul does cause us to lose touch with our financial reality. It certainly can keep us so busy that we don't see the solution even if it is looking us right in the eye.

There is a lot of competition among lenders to gain new customers by marketing credit cards with no balance transfer fees and of course the best rate of all is zero. You can take advantage of this competition to transfer the balance of your current credit cards to an introductory offer low interest card and in so doing save hundreds of dollars every month. If you use this saving to reduce your credit card balance, your decision can help you establish a solid financial future. Furthermore, there is nothing to stop you from transferring the balance again at the end of the introductory period to yet another low rate card.

Don't worry about how to get credit cards with low interest rates, there are plenty on the market. The easiest way to find them is to do an internet search. Specialist credit card sites that offer a range of cards to choose from, including introductory low rate cards, provide the most convenient way to research, evaluate and apply for a balance transfer credit card. For many people working hours and other obligations can get in the way of being able to conduct business during normal hours. Online applications can be done from the privacy of your own home at any time of day.

Look for the longest introductory period when you are evaluating credit cards with no balance transfer fees. Ideally, your introductory period will be at least twelve months. This is long enough to avoid serious inconvenience if you want to transfer the balance again at the end of the low rate term. It also is also a long enough length of time to be able to make serious inroads into debt reduction. If you are already experiencing such severe deprivation that you cannot continue paying out the same monthly amount, even to pay down debt, then you can put more money in the family budget and use a smaller amount to reduce your credit card balance. If you don't take action to reduce your debt, you will ultimately find yourself in the same situation.

Be prepared to use the introductory period to pay down your balance as well as to simply take pressure off your budget. Credit cards with no balance transfer fees can have a long term positive impact on your finances if you are prepared to sacrifice some of the immediate interest savings to reduce debt. Transferring your credit card balances to a low rate, balance transfer card can make a world of difference to your finances and your life. You have nothing to lose and everything to gain.

Visit credit-card-transfers.com that shows you how to get credit cards with no balance transfer fees which remain interest free for years. The associate site offers credit card balance transfers in the UK.

Sunday, 10 June 2012

0 Interest Balance Transfer Credit Cards

0% Interest Balance Transfer Credit Cards Tips - Reading the Fine Print

If you are suffering from extensive credit card debt with high interest rates, you've probably heard that transferring your balances from a high interest card to one with a 0% interest rate can save you hundreds of dollars in interest and help you to pay off your debt faster. If you think this kind of offer sounds too good to be true, you could be right. There is an increasing number of credit card companies that now advertise 0% interest balance transfer offers, but with hidden charges for balance transfers buried in their credit card application's fine print. Is this price worth paying?

In the past, many credit card companies charged no balance transfer fee and those that did charge for balance transfers limited the fees to a maximum of $75 per transaction. With so many people scrambling to transfer their balances and the credit card companies suffering massive losses however, most balance transfers now average about 3-5 percent per transaction.

Despite these increases in transfer fees, a 0% interest transfer still remains one of the easiest ways to reduce costs and speed up the process of paying off your credit card. For example, let's say you have a credit card with a $5000 balance and a 20% interest rate (yes, interest rates can and do get that high). By transferring this balance to a card with 0% APR, you will save over $1000 in interest over the course of one year. A 5% transfer fee would cost about $250, but you would still be saving about $750 in interest fees overall - savings which can be used towards reducing your credit card debt.

So is a credit card balance transfer fee worth paying? The short answer is yes. In this example, even paying the highest balance transfer fee of 5% still works out in your favor. The long answer however, is yes, but only if the 0% APR rate lasts for 12 months or more.

If you have good credit and can qualify for a 0% APR that lasts at least 1 year, you can take advantage of some serious savings. However, if the 0% introductory rate only lasts 6 months, the transfer fees can essentially cancel out the benefits of transferring your balance.

Using the above example, if you were to transfer your $5,000 balance to a credit card that only offered a 0% interest rate for 6 months, you would save a little over $500 on interest. Subtract the $250 transfer fee, and the total savings would be barely enough to reduce your credit card debt by 5%. Why would anyone choose a balance transfer credit card that only offered a 0% interest rate for 6 months when other offers last for 12 or 18 months? Unfortunately, in most cases they don't actually realize they aren't receiving the offer for 12 months or more.

Most companies will advertise 0% rates on transfers for up to 12 months. However, these "up to 12 month" offers often include additional stipulations in the fine print: The 12 month offer is based on credit. So you might be approved, but only be given a 0% rate for 6 months. Most consumers forget to read the fine print. They apply for a card that offers a 0% interest rate for up to 12 months, but only qualify for a 6 month 0% rate. Unfortunately, most won't figure out they've only received the introductory 0% interest for 6 months until it is too late; they have already transferred their balances and after 6 months has gone by they suddenly notice their interest rate isn't 0% anymore.

The key to saving the most money on a balance transfer is not finding a card with the lowest balance transfer fees, but instead finding a credit card with a 0% rate that lasts at least 12 months. While you might notice higher initial savings with a 1% balance transfer fee on a card that offers 0% interest for "up to 12 months," you could end up saving more with a 3-5% balance transfer fee on a card that offers 0% interest for 12 months. See the difference there?

You should always read the fine print when filling out any application or form, but it's especially important to read the fine print when applying for a credit card transfer. Read the fine print and don't lose your savings on interest to transaction fees.

Visit www.smartbalancetransfers.com , The website also provides its consumers with the opportunity to find no balance transfer fee offers.