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| All About Credit Card Balance Transfers |
| by: Neil Brown |
| 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
Bad things
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 There is usually a cut off point from the account opening when the offer is no longer valid.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 card
Good luck with your choice. About the Author Neil Brown writes for several finance websites including balance transfers and uk credit cards. |
| 01/05/2009 04:16 PM |
| Conway police looking for man in connection with stolen credit card (The Myrtle Beach Sun News) |
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The Conway Police Department is looking for the black male in the attached photo who used a stolen credit card at various locations within the city limits of Conway, according to a news release from Catina Hipp, the police department's public information officer.
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| 01/05/2009 11:54 AM |
| How to Pay Off Credit Card Debt (ABC 2 Baltimore) |
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It's a new year and time to pay off your credit card debt. We've scoured the web to find tips for the entire week.
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| 01/05/2009 01:07 PM |
| Woman charged with using mom's credit card to buy two iPods (The Express-Times) |
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A 36-year-old Stewartsville woman is charged with using her mother's credit card to buy two iPods at the Wal-Mart in Pohatcong Township. The charges against Tara G. May, of the 300 block of Jessamine Lane, include forgery and theft. She...
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| 01/05/2009 06:27 AM |
| HLB TARGETS 30,000 MEMBERS FOR NEW CREDIT CARD (Bernama via Yahoo! Malaysia News) |
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KUALA LUMPUR, Jan 5 (Bernama) -- Hong Leong Bank aims to attract over 30,000 members for its newly launched HLB Platinum Business credit card within a year, said its chief operating officer for personal financial services, Moey Tan.
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| 01/05/2009 06:42 PM |
| Genesis Financial Solutions Converts Credit Card Portfolio in Record Time (Business Wire via Yahoo! Finance) |
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BEAVERTON, Ore.----Genesis Financial Solutions, an originator and manager of credit-sensitive unsecured consumer receivables, has successfully converted and assumed management of more than 70,000 performing and nonperforming credit card accounts.
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| 01/05/2009 09:19 AM |
| Credit card theft suspect turns up in jail (Tahoe Daily Tribune) |
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SOUTH LAKE TAHOE - A suspect in connection with racking up hundreds of dollars in charges with a stolen credit card was discovered in jail after his arrest on suspicion of an unrelated probation violation.
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| 01/05/2009 06:34 AM |
| Credit Card Crackdown (The Gourmet Retailer) |
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Credit card issuers striving for increased profitability are taking action by closing inactive accounts, lowering credit limits and raising rates and fees, reports Mintel Comperemedia. What's your credit card issuer up to?
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| 01/05/2009 12:21 AM |
| Business groups praise, pan new credit card rules (BizJournals) |
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Small-business groups are divided over rules prohibiting credit card practices that consumers consider abusive.
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| 01/05/2009 09:25 AM |
| Credit card companies willing to deal over debt (Greater Baton Rouge Business Report) |
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(From The New York Times ) After helping to foster the explosive growth of consumer debt in recent years, credit card companies are realizing that some hard-pressed Americans will not be able to pay their bills as the economy deteriorates.
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| 01/05/2009 01:13 AM |
| Loose Change: Choosing a new credit card (Fort Worth Star-Telegram) |
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The recent sharp decline in the prime rate has lowered many credit card rates. Applying for a new credit card, however, shouldn’t be done lightly. Savvy consumers should carefully shop around and find a deal that locks in the lowest rate.
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