Why A Balance Transfer With Your Credit Cards Makes Sense
By G Smith
Many people have made the mistake of willingly (or unwillingly) racking up hundreds, possibly thousands of dollars worth of credit card debt. Even if they decide to pay more than the minimum and snip the offending cards in half in order to curb their desire to spend, the damage has been done. The interest rates that will be applied to unpaid balances are usually sky high and the debtor, despite valiant efforts to gradually pay himself out of debt, ends up with escalating figures.
The best way to get out of debt is to simply pay off the balances of the offending credit cards in full, but unless you were born with a silver spoon in your mouth or have a million dollar trust fund at your disposal, this option would simply not work. The more plausible move would then be, to have all the outstanding balances consolidated and have this total amount transferred to a separate credit card – just make sure that the special balance transfer rates are applied to your account.
This option may sound far out, but it is one of the best ways you can get out of debt. This happens because any outstanding balance you have on any credit card is wiped out, thus you will no longer be charged the standard interest rates. The amount that you transfer to the balance transfer card would be interest free, and the balance transfer interest fee that the new card will apply to your new account will be much lower than the usual rate, and will not be compounded.
Almost all major and minor independent credit card companies and those that are supported by banks and other financial institutions offer balance transfer programs. Apart from the significantly lower interest rates and the flexible payment terms, these credit cards further entice consumers to sign up for their program by offering other benefits, such as waived annual fee and possibly, the chance to earn rewards points when the card is used at affiliated partner establishments. If you are looking for a card company to transfer your outstanding balances to, you would need to gather as much data as you can and compare the rates side by side, so you can glean which of these services best suit your lifestyle and your finances.
If you have a lot of time on your hands, you can simply visit the banks nearest you and grab hold of their balance transfer leaflets. But if you’re on the go and have no time to sift through a lot of information, you can get the data you need by logging on to the internet.
At present, there are several websites that give vital and relevant information to internet users. There are sites that provide comparative data on myriads of products and services; from digital cameras, MP3 players, vacuum cleaners and even credit card facilities and promos. By visiting these sites, all the data you need will be presented in a very clear and concise way, without all the fluff and leaving you only with what is relevant.
By viewing sites such as these, you will be in a better position to evaluate the balance transfer offerings and you would be able to make a sound decision, based on facts and not on anything else.
This article is brought to you by CardsRatings.net, where you will find over 100 credit cards to choose from. After comparing credit card offers, Card Ratings allows you to apply for the credit card of your choice by clicking the Apply Online button. All applications are secure, and in many cases you will receive a response right away.
4 Things You Need To Know About The Best Balance Transfer Credit Cards
By Max Anderson
The best balance transfer credit cards aren't really as hard to find as the proverbial needle in the haystack. It's just a matter of understanding what makes certain cards the best of the best.
If you're interested in finding the best balance transfer credit cards for your financial needs, these four tips will help you do just that.
1. Don't Judge a Card By It's Initial Interest Rate
If you're looking for the best balance transfer credit cards available, you are most likely carrying a balance on your current credit card accounts. Because of this, the interest rate of the credit cards you're interested in should be factor number one in your balance transfer decision.
Many consumers make the mistake of jumping at balance transfer credit cards that offer low introductory rates without really considering what those rates will be going up to once the introductory period is over. Don't follow in their footsteps.
When deciding which companies offer the best balance transfer credit cards, look at the long-term interest rates, not just the introductory rates. A 0-percent rate that only lasts six months and then jumps up to 19 or 20 percent isn't really a good balance transfer credit card. The best balance transfer credit cards will have an interest rate that stays low when the introductory period is over.
2. Interest Rates Aren't Set In Stone
When dealing with credit cards, you have to understand that interest rates aren't set in stone. They can (and will) go up if you default on your credit card agreement in any way. Make a late payment or go over your credit limit and that low interest rate can really take a hike.
Even the best balance transfer credit cards will up your interest rate if you make a late payment or abuse your account privileges in any other way. To make matters worse, if you pay any of your credit card statements late all of your credit card companies can up your interest rate. This ugly credit card phenomena is referred to as the Universal Default Agreement.
Remember, when you finally get yourself set up with the best balance transfer credit cards you can find, make sure you do your part to keep the favorable terms you've been presented with.
3. They're Not a License To Pay Less
So you transfer your credit card balances to the best balance transfer credit cards and suddenly you realize that your minimum monthly payments have gone down. Don't get too excited. It doesn't mean you should pay less each month than you have been.
When you transfer your credit card balances to a lower-interest credit card, your minimum monthly payment will go down because you're paying less towards interest. What this means is that you're going to get your balances paid off faster because more money is going to be going towards the actual balance each month (especially if you pay the same amount you had been on the higher-interest card).
Do yourself a favor and pay as much as you possibly can towards your credit cards each month, even if you do have the best balance transfer credit cards out there. When you pay them off faster (saving hundreds or even thousands of dollars in interest charges), you'll thank yourself.
4. The Best Balance Transfer Credit Cards Aren't Used For Purchases
When you transfer your existing credit card balances to a credit card with a lower interest rate, don't be tempted to charge more. The purpose of getting the best balance transfer credit cards is to pay your debt off faster -- not to accumulate more debt in the process.
As tempting as it may be to buy that new laptop at 0 percent interest for six months, don't do it. Wait until your current balances are paid off and then consider making the big purchase.
By following these four credit card tips you'll be able to find (and manage) the best balance transfer credit cards on the market, enabling yourself to get out of debt faster and for less money.
For more tips on getting the best deal on credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.
