Copyright 2005 Edward Vegliante
Debt Consolidation And Credit If you are carrying a balance on one or more
credit cards you already have,
you may want to think seriously about applying for a new 0%
balance transfer credit card offer.
Many people are switching their credit card balances and reaping the rewards of a better deal. Transferring your balance can be an effective way to reduce your charges. The best credit card deal for you would have a 0% balance transfer rate and a low interest rate. There are many different credit cards to choose from that offer an introductory 0% interest rate. Some may have interest free periods as long as 12 months.
Check Credit Rating Now you may be wondering how an issuer can possibly offer 0%
balance transfers on credit cards, but it's true. Many leading
banks offer interest free balance transfers. That's right, you can
transfer balances from your current credit cards onto the new card
that you apply for and pay 0% interest on the balance for up to 12
months. What's more, some programs have absolutely NO fees to make
the transfer, though you must qualify by having excellent credit.
Other programs charge a 3% fee of the amount you transfer, but many
banks commonly cap the fee at $75. That means that transferring
more than $2500 will not cost you any additional fees.
Intelligent Finance has announced the launch of a new credit card, which offers a low life of balance transfer rate of 4.9% APR.
Improve Credit Rating Determining If a Balance Transfer Credit Card is Right for
You
3. Check with the airline credit card company what is the policy of frequent flier points with regards to a balance transfer or getting an upgraded airline credit card. In that case, do you lose the existing frequent flier miles or they are carried over Does the airline credit card company offer you to transfer balances at a lower interest rate Does the move increase the frequent flier points on the card Find out if you can consolidate your payments onto your airline credit card and also if accounts to increased frequent flier miles as well.
Credit Online Rating Report There may be a few cases when some consumers do not benefit by
transferring to a zero interest rate card. For example, if you
carry only a small balance from month to month and you intend to
pay it off soon, it may be better to choose another credit card
that offers a different benefit such as frequent flyer miles or
bonus points good for merchandise, since the 0% interest savings
are minimal for you.
shop around for a credit card that matches your needs, such as one with a low interest rate or cashback Tick Do pay the balance off your credit card before the interest kicks in a or at least, make your minimum repayments on time Tick Do transfer any outstanding balances from your cards to one card that offers a low interest rate on balance transfers Cross
Credit Score Rating Scale But in most cases, taking advantage of a 0% credit card offer is
a great deal. After all, why continue paying interest on your
credit card balance with one bank when another bank is offering you
0% interest? There is no logical reason not to save yourself
money.
It also says that ten credit cards had higher balance transfer fees. Samantha Owens, head of personal finance at Moneyfacts, said that rates and fees would "probably not" fall in 2008 although there might be "the odd provider who comes out with a good balance transfer deal". "The credit card market has been offering really good deals and low rates for such a long time, and obviously with the credit crunch coming in, [they have] had to reduce their fees.
Bad Card Credit Credit People The Benefits of a 0% Balance Transfer Credit
Card
- Paying 0% interest for 12 months can provide relief if you need
to devote your cash to other expenses. With 0% interest, your
monthly minimum payment is actually less than a credit card that
charges interest, because more of your payment goes to paying off
your principal each month rather than to paying the interest
fees.
- Alternatively, a 0% interest credit card allows you to pay down
your debt more quickly because you might be able to increase your
monthly payment since you no longer are paying interest for one
year. For example, if you transfer $5000 to a 0% card, and your
previous card had a 12% APR interest rate and a 3% minimum balance
due payment, you would have spent $538 in interest fees over the
year. But with the 0% card, you can choose to pay that extra $40 -
$50 per month towards your principal, and thereby reduce a sizeable
chunk of your debt.
- Similarly, a 0% interest credit card might even allow you to
pay off your balance with less each month if you chose to do this.
For example, if you transferred $5000 and intended to pay if off
over 1 year, you would need to pay $444 / month with a 12% interest
card, but only $416/ month with a 0% interest card, a savings of
$28 per month.
Free Credit Rating Report An Important Caveat
Credit Rating Scale Please note that with any of the 0% balance transfer credit card
offers, you must commit to making your payment on
time each month. If you miss a
payment or are late, you risk losing the 0% rate and you may
find yourself paying a higher penalty interest rate on balances
owed, so pay attention to your credit card statements and make
your payments on time.
Bad Credit Rating All in all, the savvy consumer should take advantage of the best
0% balance transfer credit card offer he or she can find. The best
course of action is to look on the Internet for 0% card offers and
assess the best choice for yourself, such as the Citibank Platinum
Select Visa (with no transfer fees), or the Chase Platinum Visa, or
HSBC Platinum MasterCard to name a few. It is recommended that you
apply for the best card your credit history can qualify for and
transfer as many balances as you can to take maximum advantage of
these offers.
Credit Rating Agency
------
Credit Rating Canada Ed Vegliante runs the
website
http://www.Credit-Card-Surplus.com , a well
organized credit card directory enabling the consumer to compare
and apply for a variety of credit card offers including Balance
Transfer Credit Cards .
[ Comment, Edit or Article Submission ]
