Low Interest Credit Card

One of the biggest lessons that I’ve learned in life is the importance of taking action. When it comes to your finances and getting rid of credit card debt, it is more important than ever to develop a plan and take action as soon as possible.

You may be hoping that your credit card issuers will reach out their hands to help you when you’re struggling to overcome debt. Truth be told, I don’t see this happening. Most of us have a tendency to wait for things to happen in our favor, but we must learn to become action oriented if we are to become debt free (or achieve just about anything else in life).

For example, you may be interested in lowering your burden by switching to a credit card with a lower interest rate. Depending on your specific situation, this may be a good idea for you to consider. However, don’t just wait for credit card companies to call you up or send you an offer in the mail.

Yes, I know that most of us receive offers on a regular basis, and it might just happen that you receive an attractive, helpful offer for a low interest credit card. But why wait to receive such offers? You can take action and contact the credit card companies yourself to try and gain a lower interest rate.

You can try a few different approaches. If you wish to be honest, you can simply discuss your situation with the customer service representatives and ask if a lower interest rate is possible. Depending on your personal ethics, you can make a bluff that you’ve received an offer for a much lower interest rate which you are considering.

You’re not just limited to your current credit card companies. You can also call other companies and talk to their marketing department about any special offers they may have. Depending on their interest rates, you may want to transfer your existing balance to this new credit card. 

However, make sure to understand the fine print. The low interest rates may only be temporary, in which case you would have to pay a much higher rate in the near future. You should also be aware of any transaction fees that you might have to pay in order to transfer a balance.

The most important thing, however, is to be proactive and start taking steps to eliminate your credit card debt. I cannot overemphasize the importance of taking action. Make a commitment to learn as much as possible about improving your finances and take it one step at a time.

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It doesn’t matter how the economy is performing; credit cards are still and will always be very big business for banks and other card issuers. That’s because the up-side for them is so large – when they have their “credit card hooks” into you it means you’re going to be paying them interest and fees for a very long time. And that’s big long-term profit for them.

That’s why they constantly compete for your credit business and will always be creating programs to lure you away from a competitor. One program that has worked successfully for years is the balance transfer. And even though reforms are in the works, and even though this will cause the credit card companies to change or rearrange many of their business practices, it’s a safe bet that credit card balance transfers will not go away.

Balance transfers are simply special offers banks will use to tempt you to move your current balance from one credit card onto another (the 2nd card being their card of course). To make it worth your while, banks will offer you a ridiculously low interest rate – sometimes 2, 1, or even 0 percent. I’m sure you’ve seen an offer or two in your mailbox for a 0 balance transfer credit card. You may even be seeing them monthly.

These offers are historically open to borrowers with good credit. So if you’re credit is a little shaky, you may not be eligible. But if you are eligible, these balance transfer cards can be a good deal – but only if you’re careful and I mean very careful. That’s because there are a lot of little “gotchas” to watch out for.

For instance, if you’re late on a payment, your interest rate can shoot from 0 percent to double digits overnight. If you go over your limit by a penny, your interest rate can skyrocket. Every offer comes with its share of hidden dangers that you must watch out for.

And then most every offer will also have a time limit on it. Usually it will be six months to a year. At the end of that time a regular interest rate will kick in and your minimum payment will jump. If you are going to take advantage of a balance transfer offer then you need to make sure you either pay off the balance before the time limit expires or that you can handle the jump in payment and interest when it does.

Remember, you need to be disciplined with your budget and spending habits before you should transfer a balance otherwise you might just be digging a bigger hole for yourself. You also need to pay strict attention to all of the provisos and rules built into the offer. There are often little twists and turns that you could trip over and when you do, you lose that great rate and your payments go up. Don’t forget that credit card companies make a lot more money keeping you in debt than helping you get out of debt so beware.

David T. Andrews writes about financial sector topics. If you’re thinking about transferring your credit card balance, it’s best to do a little bit of research. You can do some of that research on David’s website: Prepaid Debit Cards Online.

Balance transfers on credit cards are an often unrecognized way to climb out from under the weight of high credit card interest charges. Yet they are a profoundly powerful and easy option. Unlike making application for debt consolidation loans which can be a bit of a trial, balance transfers tend to be simple and fast as long as you meet the criteria.

It is not as difficult as you might think to obtain balance transfers on credit cards. Credit card providers are competing for your business and there are many special offers available at any given time. Look for balance transfer deals that offer the lowest balance transfer costs, lowest introductory and future interest rates, and lowest ongoing fees, charges and penalties. If you have multiple credit cards, try to transfer the balances of all of them into one introductory rate card. One payment is not only more convenient, it is lower than the combined amounts of different minimum payments.

When considering balance transfers on credit cards, make sure you understand all the terms and conditions of offers you are considering. You will be unable to make an accurate assessment if you don’t do this. For example, one lender might offer a three month introductory term with zero interest but will charge a balance transfer fee and the normal interest rate after three months will be above average. Whereas a different credit card provider might offer a twelve month term with an interest rate of 2.5% and no balance transfer fees. In this case it is better to pay low interest because the overall financial benefit will be substantially greater. Of course, if you can find a zero rate card with a twelve month term and no balance transfer fees, go for it!

The easiest way to obtain balance transfers on credit cards is to use an all-in-one credit card website that provides information on a range of different credit cards from a variety of providers. This can save you a lot of research time. These sites also tend to provide an online application form so that you can apply to transfer credit card balances at any time or place that is convenient.

However, balance transfers on credit cards will only give you an advantage if you make good decisions. If you just enjoy the short term financial relief provided but do not use some of the interest savings to pay down your credit card balance, you will find yourself back in the same situation before you know it. Even if at the end of your introductory period, you choose to transfer your balance to yet another introductory low rate card, you have no guarantee that you will be able to keep doing this forever. After all, credit card companies might eventually wise up and change their rules. As much as possible, it is important to work at reducing the debt. If you do this, transferring your credit card balance to low or zero rate special offer cards can give you the financial leverage you need to turn your situation around.

Our credit card site shows you how to get balance transfers on credit cards which remain interest-free for years. The associate site offers credit card balance transfers in the UK. Download free 0 interest credit card software and get 0 interest credit for years.

Student credit card balance transfers provide assistance to students with debts. Student credit cards usually carry high interest rates. High rates are levied because banks want to limit their risk of loss on students who generally have no credit history or rating. Very few students actually build a good credit rating.

Many students often find it hard to pay monthly installments and interest. They, therefore, opt for student credit card balance transfers. Under these offers, their accounts are transferred to a credit card with no interest. The zero percent interest is maintained for the initial nine to twelve months, after which the rate is restored to a predefined level. Student credit card balance transfers help students save some amount of money that can be used later to pay off debts.

Student credit card balance transfers take care of not only credit card balances but also other loans and installments. These loans are transferred through balance transfer checks. However, these transfers carry a transaction fee. Transaction fees are usually charged in terms of some percentage of the transferred amount. A large balance results in a substantial transaction fee, which can be disadvantageous to students who want to transfer large balances. Some banks fix the transaction fee at $50 or $75 to attract more customers.

Though student credit card balance transfers are generally attractive because of the zero percent interest, not all accounts can be transferred. If a student has very large outstanding balances on several high-interest credit cards, it may not be possible to transfer all of them to a single low-rate card. The student can transfer only a small portion of the outstanding balances. Information booklets on student credit card balance transfers mostly highlight only the attractive side of the offers. Important terms and conditions that limit the advantages are usually printed in fine print. Students usually fail to notice this information. So, it is imperative that a student thoroughly examine the terms before taking advantage of a student credit card balance transfer.

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As more of us struggle to pay off high interest debt, 0% or low rate balance transfers are coming to the rescue. Or are they? Balance transfers can be really handy, provided you’re aware of some of their shortcomings. Here is our list of the top 7 things you need to know when contemplating a balance transfer.

Always make your payments on time

It’s very important to make payments on your transfer on time. These types of accounts generally make prompt payments a condition and if you skip or miss them you could be heavily penalised.

Know when the low rate period ends

Most balance transfer deals have an introductory low or no rate period which is usually three, six, nine or twelve months. In order to make the most of your transfer you need to know when this introductory rate ends. Make note of the date and work towards getting the majority of your credit card debt paid off by this time.

Read the fine print

As with any banking product, make sure you read the fine print associated with your card. If you’re unsure of any conditions, speak to a customer service representative before you apply.

Don’t use the card for cash advances

Cash advances on a low or no rate balance transfer cards are a no no. These cards are really handy to pay off large amounts of accumulated debt, they’re definitely not designed for withdrawing cash or making purchases. Cash advances always attract a higher rate of interest and they’ll eat into any potential savings. In addition to a high interest rate, any cash advances will be treated differently from the transferred debt and can only be paid once the entire balance transfer has been paid off, see below for more information.

Don’t get tricked by payment hierarchy

Payment hierarchy is something that all credit companies do and it can catch consumers out. Here’s how it works – you transfer a debt of $4000 to your new 0% balance transfer card. You also use this new card to make $1000 worth of purchases. Any payments you make will be applied to the debt that is attracting the lowest interest rate, in this case it would be the balance you transferred. Any additional purchases attract a higher rate of interest and would only be paid off once the total of your balance debt is paid.

Don’t leave it too late to switch

A lot of transfer offers are only available for a limited amount of time after you’ve opened your credit card account. The key is to get the balance transfer happening as soon as you have the card in your hand. To help you with this, a lot of card providers give you the option of automatically transferring the balance and closing your old account upon activation of the transfer. This is a great way to make sure you’re making the most of the interest free or low interest period associated with your new account.

It pays to shop around

The key to finding the right deal to suit your financial situation is to shop around. Balance transfer offers are becoming commonplace and all the banks are vying for new business. Pay attention to what the banks are advertising and do a bit of research online to see what deals are on offer. If you need a quick and easy way to find information about balance transfer credit cards then use a credit card comparison website.

If used right, credit card balance transfers are a great tool for reducing credit card debt. By doing a little research and understanding potential pitfalls before you sign up, you can save yourself some money and a lot of aggravation.

Find out more on credit cards at Credit Card Researcher, including balance transfers, business credit cards and low interest credit cards. Australia’s best credit card comparison website.

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.

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George Atwill recommends the website, a free online resource and service where consumers can compare and search credit card offers by introductory period, a maximum on balance transfer fee, categories such as 0% APR balance transfers, no balance transfer fee, and low interest, issuers, brands, keywords, and more. Start saving money with balance transfers.

In today’s financial market more and more people are turning to credit card balance transfers instead of the traditional home equity lines that they have been used in the past. During the refinance hay-day throwing a tax deductible line of credit on the home to wipe out the credit cards was a no-brainer. Nowadays, shrinking home values and a turbulent secondary market are causing most banks have to hold these loans as opposed to selling them. This means the HELOCS of yesterday are only available to those with impeccable credit who have an abundance of equity in their homes.

Luckily, interest rates are low and balance transfers are a pretty good alternative if your credit card debt is out of control and need some help. This being said there are a few things that you want to look out for when transferring credit card balances from one card to another. The golden rule is that when you use a balance transfer card as an avenue to pay off balances on your other cards let this be your sole purpose. Make a budget and timetable to pay off the debt where there is a beginning and an ending payment otherwise you may get yourself into deeper debt.

Things to look for when transferring credit card balances:

Life of Balance Transfer cards - Life of balance credit cards are just what their name implies, they offer a low rate that applies to the balances you transfer within a certain time period. What you want to look for is a fixed rate that will not fluctuate over time. Depending on your credit level these may not be available to you, however if they are we highly suggest that you seek these cards out. The “gotcha” with this class of cards is that they usually will give you an extra thousand or two on your limit in hopes that you spend it at a higher interest rate, and most people do.

Again, we suggest that you use balance transfer credit cards for the single purpose of transferring higher interest credit card balances to a lower fixed rate. Once the transfer is completed, we recommend that you shred the transfer card and the one you transferred from to keep yourself from using them again. Over 75% of people that transfer balances use the transfer card and the old card again and end up owing more money than they did before the transfer. If the cards do not have an annual fee keep the accounts open for emergencies but shred the cards to keep yourself honest.

The Fine Print – If credit card issuers are similar in one area it is most definitely their fees and the fine print. It seems like they have fees for everything including one for on-time payments. Seriously you need to read the fine print and weigh the fees that apply for balance transfers, late payments, grace periods and other “gotchas” like universal default clauses. Over 80% of people that apply for credit cards will not read the fine print from beginning to end only to be surprised when their bill arrives in the mail. Most credit card websites offer handy calculators to help you calculate the best deal considering all of the fees.

Most credit cards have reduced the grace periods for repayment from 30 days to 20 days in an attempt to earn more fees and interest. If you are like most people, including yours truly, you pay your bills at a certain time of the month that usually coincides with your pay periods. The problem with this is that the 20 day grace period is relative to the due date of last month’s charges and is forever changing. If you pay your bills once a month like I do this will cause you to get late payment fees and could even trip the universal default clause which brings me to my next topic.

Universal Default Clauses – A universal default clause is a nasty little trick that credit card issuers use to jack-up your rates and fees to intolerable heights. If you look at the top of the fine print on each credit card you will usually see the regular APR and one below it that is through the roof. The one below it is the rate you will get should you pay late or even if your credit deteriorates. These clauses range from annoying to nasty and most states are trying to outlaw them but the majority of credit cards still have them.

The only card issuer that I can think of that doesn’t have this clause across the board is Capital One. I’m sure there are others but the clauses differ from issuer to issuer and card to card. Read the fine print for each card you are considering, see what their rules are that will trigger this clause. Some are mild which apply only if you are habitually late, where others monitor your credit and can jack up your rates and fees if your credit is deemed riskier than when they issued the card.

Introductory & Variable Rates – Beware of the asterisks. When you see one of these next to an interest rate you can bet it’s going to change on you. Most cards will advertise 0% interest on balance transfers 12 – 15 months but have cute little asterisks next to the rate. Find the fine print; chances are that your sexy 0% rate is going to morph into a giant wallet munching monster after the intro rate is over. Find out what the adjusted rate will be.The “gotcha” here is that most people know their rate will adjust in the future but they rationalize the transfer thinking that they will have the balance paid off in that time frame. Chances they won’t and the credit card companies know this. How else do you think they can offer 0% interest rates?

Variable rates are almost inescapable because 95% of all cards have variable rates. The ones that do not have them are hidden deep within most websites and offer very few frills. The reason they are hidden is that they are a little tougher to qualify for and offer lower profit margins to the issuers. When searching credit card websites take an extra minute to go all the way to the last page in each category, you may be surprised what you will find. Most credit card websites are arranged with the most profitable credit cards on the first few pages, these are rarely the best credit cards.

Reward Cards – If you are using your balance transfer card as you should, the bells and whistles on reward cards shouldn’t concern you. The bells and whistles cost you more, period. They cost the issuer more and they pass the cost right back to you. If you stay true to the purpose and transfer your balances in order to pay them off you should get a plain-Jane generic card without the usual frills hat comes with most cards. The only frills you should seek are the life of balance feature, fixed rate and a manageable or nonexistent universal default clause.

In closing I hope these tips help you get your very best deal should you decide to use a balance transfer card. This category of credit card is becoming more and more popular every day due to the financial chaos surrounding us today. This is generally a good thing though; this causes the card issuers to come up with different cards that offer better deals to keep up with their competition. Just remember the golden rule, only use balance transfer cards with a specific plan to pay off a balance. If you are “robbing Peter to pay Paul” the credit card companies will usually win in the end. Remember, Las Vegas wasn’t built on winners and neither are large credit card companies.

Aubrey Clark is a graduate of Johnson Wales University and lives in Atlanta Georgia with his wife and four children. He is an editor and syndicated writer for lendfast.com on subjects ranging from Where to Find Low Interest Rate Credit Cards to Nationwide Home Mortgage Loan Companies

Using balance transfers credit cards, you can move funds from one of your accounts to another. The advantage of doing this is simple, especially when you qualify for credit lines that offer low interest or even 0 APR to you. There are several ways that you can save money by using this type of and many people do qualify for this line of credit. If you do, in fact, qualify, make sure to use them wisely to save money.

A balance transfer allows you to move money from one credit card to another, allowing you to pay off the balance, or portion of the balance, to another card with typically a promotional offering of a very low APR or even a 0 APR. Most often, they are done through electronic payments or sometimes with checks that are sent to cardholders. In some situations, when you apply for the card, you can transfer the balance immediately.

Why Bother?

One of the best reasons to use balance transfers credit cards is to save money by moving money from a high interest rate credit card to one with a much lower rate. A lower rate, even just by a few percentage points, can save you a great deal of money, if the card balance is significant. For example, if you have one line of credit with a $5000 balance at 20 percent interest and move it to a card with a 3 percent interest balance transfer APR, you can save up to $850 on an annualized basis by moving that balance to the lower rate offering.

0 Percent APR Balance Transfers

Typically, the best way to use balance transfer cards is through an introductory offer. Some lenders offer 0 percent APR balance transfers for a limited time for new cardholders. This period may be for three to six months (sometimes as long as 15 months for the most credit-worthy applicants) where no interest is applied to any card balance that is transferred during the initial application process.

To use this type of card wisely, first you will obviously want to transfer any high interest rate credit card balances to the 0 APR credit line. But here is the key to making this type of offer really pay off: make sure that you payoff the outstanding balance within the introductory period. That way, you do not have to pay ANY interest or finance charges for that period of time. The savings can be substantial. Be advised, however, that you have to make sure that you pay off the balance before the introductory period expires. Any balance that is not paid off prior to the introductory period ending will start incurring finance charges at the regular rate, which can typically be exorbitant at 17 or 18% and much higher.

Monitor the Fees

It is important to consider any fees that might be associated with the use of the card. Many cards offer some sort of balance transfer promotion these days, but some of them do charge a considerable fee for doing so. If you decide to use one for an introductory period, be sure that there is no balance transfer fee, and that the introductory discount applies to balance transfers.

When you use them wisely, balance transfers credit cards provide optimum benefits to cardholders. You can save a considerable amount of money with introductory offers through this type of offer, especially with larger outstanding card balances with high ongoing APR’s.

Robert Alan is an editor for www.CreditCardAssist.com and frequently contributing writer on various credit card-related topics. Find more free information, tips and advice from Robert on the balance transfers credit cards page at CreditCardAssist.com.

Not a week goes by when I don’t get a least 2 or 3 offers in the mail to transfer high interest credit cards to a new card. And they are enticing – 0% interest for 6 months, 6.9% interest until the balance transfers are paid off, no annual fees, shiny new credit cards with fancy graphics.

Do these balance transfers help you get out of debt?

Or do they simply keep you in debt longer by bouncing from card to card?

In most cases, they just give you one more credit card to use and watch the debt pile higher and higher. Unless you have the strength to cut up the old card, or hide it in a drawer and not use it, most people just keep using their cards.

Which is exactly why the credit card companies keep sending out these offers!

Are balance transfers a bad deal in every way?

Not at all. In fact if you only have a small amount of debt, they’re a great way to keep your interest rates low. And if you have a lot of debt, some people make “credit card surfing” (moving from one card to another while chasing lower rates) part of their financial plan.

So it can work well, and it can save you lots of money.

But you have to be disciplined to be able to open a new credit card, with a low rate, and get rid of the old card.

And over time, if you keep using your old cards, you might find one day that you are in debt way over your head, and have so much debt you cannot make the payments, or cannot open a new card to transfer your balances.

So the best way to deal with credit card debt is to come up with a plan for paying off your debts, not moving it around. Transferring your balances may help you do this, by lowering your interest rates and allowing you to pay down the debts faster.

But balance transfers alone won’t get you out of debt, so make sure you have debt reduction plan in place while you are taking advantage of these great deals!

Looking for help getting out of credit card debt? Visit http://www.debt-tips.com/debt.html and get the debt help you need. Don’t let credit card debt ruin your life! You’ll learn lots of different debt reduction tips for getting out of debt faster and saving yourself lots of money!

You will find that credit card offers are a dime a dozen in our society. Chances are you get them in the mail on a regular basis even when you aren’t looking for one. Should you be interested in finding offers though you can easily do so online. There are always plenty of great offers out there in order to generate new customers. The only way these credit card companies make money is when you pay them interest on your purchases.

Credit card balance transfer promotions are among the most common out there. These companies already know that consumers have a ton of credit card debt to contend with. With this type of offer they give you a low introductory rate for set period of time. You can then transfer the balance from other credit cards to that lower rate up to set dollar amount.

There are plenty of advantages to accessing credit card balance transfers as long as you are responsible about it. A credit card balance transfer 0 means you don’t have any rate that applies for that period of time. This means every cent you pay goes towards the principal and you can significantly lower your credit card debt. Not everyone will qualify for that but you can still get a very low credit card balance transfer rate.

Generally this works by providing the credit card information to the new company. They will then pay off the balance you have with that other credit card. This doesn’t mean you now have a credit card you can start charging things on again though. Sometimes the new credit card will come with blank checks. You can simply fill one out as you would a regular check to your credit card with the highest balance that you plan to transfer.

One thing you certainly want to be on the look out for – credit card balance transfers no transfer fee. This is because you don’t want to end up paying 2% or more to cover that transaction. Such fees aren’t worth it and they will only increase the amount of overall credit card debt you have.

Another scenario is that you can write yourself a check. You can use those funds to pay off other bills you have out there with high interest on them. As long as the rates on them are more than the credit card balance transfer rate then you will be fine. This can help loosen up some cash each month for you to access as well. Do your best to allocate as much of it as you can to quickly pay off that credit card balance.

If you don’t owe very much debt you can also choose to use the money to buy something you need for a low rate. This could be a down payment on a car, materials for various types of home improvements, Christmas shopping, and to get medical or dental services. There is no question that credit card balance transfers give you the opportunity to save money.

However, you need to be logical about how you use this process. Pay close attention to the credit card transfer rate as well as how long that rate applies. This way you can plan your course of action in a way that will save you money.

Article by easy-creditcard.com [http://www.easy-creditcard.com/]