Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain
|
As you probably know, interest rates are at all time lowright now and if you aren't getting the bestdeal from your credit card company then they owe it to youto either lower your rate, or you owe it to yourself to find a better deal. You see, credit cardcompanies need your business in order to succeedand if you refuse to pay a penny more than you have tothen you'll be doing yourself and others a bigfavour indeed. By doing this, you'll avoid paying morethan you should and the companies will stoptreating its clients inappropriately.
Now that this is clear, we will talk about the essentialsof balance transfers, how they work and howyou can ensure that you get the absolute best possibledeal.
1. First and foremost, understand what a balance transferis. A balance transfer is when youtransfer the balance from one card to another in order toget a better interest rate than the one thatyou are currently getting.
2. Second, to find the absolute best deals, look totransfer balances on cards where the initialinterest rate is 0% and the amount after that is lowerthan the one you have now. For instance, ifyou're a cardholder that has an interest rate of 27.4% ona £1000 balance and you only pay £150 amonth for 6 months, you will not pay off the balance in 6months. Instead you will pay £247 worth ofinterest and your balance after 6 months will be £346. Incontrast, if you had a 0% card and make thesame monthly payment then your balance will be reduced to£100 at the end of the 6 month period, atremendous saving!
3. Third, don't throw those offers that you receive in themail away. If you have great credit thenyou'll likely have credit card companies vying for yourattention. Just use this power to youradvantage and find the very best 0% deal for you.
4. If no good deals seem apparent, then you have to findyour own deals. You can do this byconducting a thorough search on the internet to see if youcan find a 0% card offer.
5. Once you've done this, request information and thenreview it carefully. Pay close attention tothe rate after the initial introductory period is over.For instance, if you have two choices of cardswith 0% interest rates for 6 months and one charges aninterest rate of 15.00% after the initialperiod and one that charges 11.00% after the initialperiod then by all means choose the second onebecause it is by far the better deal overall.
6. Read and then re-read the credit cardholder agreement acouple of times. Make sure that youunderstand all of the jargon and if you don't, findsomeone that does before you sign it. Review itclosely to make sure that you are getting the best dealpossible. For instance, when evaluating deals,you should ask yourself these questions:
a. How long does the introductory rate last?
b. What will be the rate after the teaser expires?
c. What are the cards annual fees? Can they be waived?
d. Are there any transfer fees that you should be aware of?
e. Are there any perks that are offered? (Ex. frequentflier miles, free gifts, etc).
7. Once you've decided on an offer, fill out yourapplication fully and get it in the mail as soonas you can.
8. Once you get the offer, make sure that it is a 0%teaser rate and if it isn't, then contact thecompany right away. If they aren't open to doing so thentell them that you're cancelling the card andlook for another company that delivers what they promise.Your primary goal is avoid the old "bait andswitch" while simultaneously saving money on interest.
9. While waiting for your new card, make sure that youcontinue to pay on your old card to avoidglitches in your credit report and once you receivenotification that the transfer has been made, makesure you contact the old company and make sure that theyreceived the payoff amount.
10. After the teaser rate is up, don't be afraid to jumpfrom one credit card to another after theteaser expires. You see, there is absolutely nothing wrongwith surfing cards and taking advantage of0% offers whenever you possibly can. Just keep findingand researching great deals.
That's it my friend. Credit card transfers don't have tobe so confusing and daunting. If you follow the above mentioned steps then you can and will win the balance transfer rate and stop throwing your hard earned money down the drain.
Claire Bowes is a successful freelance writer and owner ofhttp://www.the-credit-card-centre.co.ukwhere you will find further advice and money-saving tips on the best credit cards, 0% balance transfers and cash back credit cards.
|
|
|
How To Establish Great Credit
Building a good credit history is important. If you have no reported credit history, it may take time to establish your first credit account. This problem affects young people just beginning careers as well as older people who have never used credit. It also affects divorced or widowed women who shared credit accounts that were reported only in the husband's name.If you do not know what is in your credit file, check with your local credit bureau...(related: Credit)
Credit Card Balance Transfers Explained
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 ?...(related: Credit)
Preventing Credit Card Mess
Credit card debts problem is extremely common today. It is usually the first sign of longer term financial troubles. How to manage your credit cards so that you will never fall into credit card mess? There are four pilla...(related: Credit)
Choosing A Credit Counseling Company
If you have considered credit counseling as an option to your financial problems, then you are probably wondering how to choose from one of the many credit counseling companies that are popping up left and right these days. There really is not an easy answer to this dilemma but there are some things that you can look for in a credit counseling company that might make the decision a lit...(related: Credit)
Important Things To Know About Divorce And Credit
Joint debts remain joint debts.Both spouses signed a legally binding contract with the creditor, and a ...(related: Credit)
Teaching Students To Keep Out Of Credit Card Debt - The Parents Role
Parents have the full responsibility for their children and their education. It is up to parents to teach their children what's right and what's wrong, how to conduct themselves as good citizens, how to cross the road safely and generally protect themselves from harm. In fact, up until the time that child is an adult, the parents have responsibilities in every part of that child's life, right up until the time they are a college student.T...(related: Credit)
The Top 5 Secrets To Managing Your Credit Cards?so They Won?t Manage You
You've probably never heard of Frank X. McNamara, but he revolutionized the way you shop on a daily basis.One evening in 1949, McNamara-head of the Hamilton Credit Corporation in New York City-was dining out with two business associates. Their topic of discussion: one of McNamara's clients, who was defaulting on a loan because he had shared his gasoline and department-store credit cards with some friends in need. Unfortunately, the friends didn't have the money to pay back what they had borrowed, so ...(related: Credit)
First Major Regulatory And Legislative Victory Of 2005 For Creditors And Consumers
Under the Fair Debt Collection Practices Act, collectors are not allowed to disclose a consumers past due debt to anyone other than the debtor and in some cases a spouse. The Telephone Consumer Protection Act would have required collectors to identify the registered name of their business in any pre-recorded messages to consumers or debtors. Since the name of many collection agencies indicates that they are a debt collection agency or that they are calling for the purpose of collecting a debt, this would have caused them to violate the FDCPA. The TCPA creates unworkable contradictions with collectors and creditors who are following the Fair Debt Collection Practices Act.The Telephone Consumer ...(related: Credit)
Bailiffs & Council Tax - Knowing What To Do
This article is about bailiffs who may call trying to collect Council Tax or Community Charge (Poll Tax) arrears. If a bailiff has contacted you to collect another sort of debt the law might be different.Council Tax and Poll Tax are usually collected by private firms of bailiffs on behalf of your local council. They try to take your goods away and sell them, usually at auction, to raise money to pay the debt. The process they have to follow to say they want your goods is called 'distraining' or 'levying'.From October 1998 bailiffs who call must be "certificated". This means they must have a certificate from the County Court allowing them to act as bailiffs. You can complain to the County Court about a certificated bailiff.From April 1998 you should get a letter from the Council telling you how much you owe and wa...(related: Credit)
The Art Of Stoozing To Make Money From Credit Cards
Make Money from StoozingStoozing, this is a sophisticated method of making money from credit cards that of...(related: Credit)
Consolidating Credit Cards
Credit card consolidation is a popular solution for those with significant credit card debt, usually distributed on three or four different cards. Basically, this means putting all your debts together on a single card, like transferring it all to one loan. Of course, the goal is to pick a card that offers better conditions than what you already have, in order not only to simplify, but also to reduce your payments.Since there are so many offers out there, and lenders fight over your business, you can sometimes find solutions that can save you thousands of dollars per year. If you consolidate your debt to a credit card with low interest and 0% balance transfer, you can save considerably, and pay off your credit sooner (which, of course, is the main goal when dealing with credit card debt).The...(related: Credit)
site-map - Copyright © 2007 | Contact Webmaster | All Rights Reserved | Free Articles and Information | Credit