| |
Balance Transfers
By Phil Edwards
Credit card balance transfer involves using a credit card to pay off the amount
outstanding on one or more credit/store cards. The total debt then moves to one
card.
The main benefit of balance transfer is a money-saving one. In the competitive
credit card market an increasing number of companies are offering a 0% interest
rate for a fixed period on balance transfers made by new customers. This allows
new cardholders to make considerable savings in interest repayments. Interest
free periods vary and certain credit card issuers extend the 0% interest rate
offer to cover new purchases, it is worth taking great care to compare balance
transfer offers well before deciding which one to choose.
Some companies offer lower than average interest rates on transferred balances
for the life of the balance transfer. This may be good news for card users who
are not planning to pay back credit card debt in the short term.
Transferring credit card balances is usually a simple process. Once a card application
is approved it usually involves a phone call to the new card issuer to transfer
the balance(s) from the other card(s). Many credit card companies also offer
an on-line service, making it even easier to transfer balances via the Internet.
There is usually a 'window' of time after a new card is approved
during which balance transfers attracting the promotional interest rate must
be made.
A word of caution regarding balance
transfers. Minimum monthly payments still need to be made. Fall behind with
minimum payments and fines can be made and interest free offers withdrawn. The
same can happen if credit limits are exceeded.
In a market full of balance transfer deals, offers vary greatly. It is important
to double-check the details carefully before signing on the dotted line. For
example:
• Are there any additional fees to be paid when balances are transferred?
• Do I need to make a minimum monthly spend using the new card to qualify
for the promotional balance transfer rate?
• How soon after my credit card is approved do I need to make the balance
transfer?
• What interest rate is charged on new purchases made using the card?
In particular, 'Balance transfer for life' cards often put payments towards
clearing the low interest balance transfer and not the recent purchases that
attract higher interest
• Do I get charged interest on new purchases from the time the purchase
is made?
• What does the interest rate revert to after the promotional period has
finished
Before taking up a balance transfer offer, also take time to consider the amount
you need to move and how much you intend to pay off and purchase each month.
That way you can be sure that you choose the right card for you.
To See the latest offers in detail in the UK at the moment please visit: Our
Balance Transfer Summary
About the Author
Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of http://www.1st-uk-credit-cards.co.uk and http://www.1st-uk-bank-accounts.co.uk.
Article Source: http://www.simplysearch4it.com/article/27879.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/27879.html" as shown above and make it hyperlinked. |
| Some other articles by Phil Edwards | Gardening Hints, Tips and Advice
Creating a beautiful outdoor living space can be one way to add usable space to
your home. Although, depending on the climate where you live, this outdoor space
may not be usable year round, many homeowners ...
Fun Activities for you and your Kids
Are you looking for fun activity ideas to do with your kids? Never again hear
the whinny words, "I'm bored" again. There ...
Fun, Easy Science Experiments for Kids
Several fun science experiments can be conducted with basic materials that you
already have in your home. These little experiments will keep your children ...
London: A Cultural Paradise
London is more than 2000 years old, and has been a vibrant, active city for
its entire history. Today, it's the home ...
Travelling Great Britain
Who isn't tempted by the mystique of Great Britain? The castles, the museums, the historical sites, the tame green countryside – the country is much like the people, with a deepness and ...
Tents and Camping
Outdoor weddings and garden parties are so beautiful, and the sky is the limit
for decorating and themes- and the only concern is the inability to accurately
predict the weather. Consider this; standing outside with ...
|
|
| |
