Wherever you look these days in newspapers, on TV, or magazines you see nothing but ads for Credit Card Offers. They offer all sorts of rewards, e.g. air miles, low rate; fee free, cash back and the list goes on. However once you take up all the wonderful offers and you suddenly realise that your interest rate is too high. So now you need to look for balance transfer credit card offers. So you need to lower your interest payments by transferring your balance to another card. This is one of the best, and easiest ways to reduce your credit card costs. The way to do this is, search for the best credit card such as Visa, MasterCard Discover and American Express. Look for things like no annual fee, rewards, low rate and fee free just are sure you understand the terms and conditions of the new card, and therefore maximize your savings. However don't run straight out and switch you credit cards. Think first do you want to change your current credit card? If you don't, simply ask for a lower interest rate. Tell your credit card company you've found another card with a much lower rate and you'll have to transfer your balance if they can't cut you a deal. However, be prepared to do just that if they refuse your request. If they still refuse compare credit card offers, as credit card companies vary on interest rates. Why Use Balance Transfer? Well, by transferring your current credit card balance to another company, you can then lower interest rate. Check online credit card offers, and do your research among banks such as First Premier Bank, Advanta Bank and Orchard Bank. They may have some top Credit Card Offers, where banks like Citibank, HSBC and Chase offer lower interest rates. For example Discover Platinum Card offers a 10.99% variable interest rate and 0% on purchases balance transfers for 12 months. Or Blue from American Express offers 12.24% variable and 0% on purchases for 15 months. Then you could choose one of the best visa card offers from Simmons first visa Platinum who offer 7.25% fixed rate. There are some credit cards offering a fixed APR for the life of the balance transfer, or connect it to the billing cycle. Plus you can also get some new, credit card offers. This could include cash back, fee free and various rewards. And protection programmes. How to Transfer BalancesYour new credit card company could offer you a low rate, to attract new transfer customers, however you can check out all the best credit card offers available on the Internet. Then you either fill out the required forms given to you by your new credit card company or just call the new company and do the transfer over the phone. You can also do the balance transfer by writing a transfer cheque, or convenience check, but make sure they are used in the allotted time. Otherwise you will be charged the regular rate for your card. However you can only transfer the limit your card allows. Transaction Fee and Other FeesYour transfer will be treated like a cash advance by many of the banks; this includes banks in the UK and the USA. If you are transferring due to a special offer there is no fee. The normal fee is 3% for each balance transfer. Which is usually a $5 minimum up to a $50 maximum. However remember that if your transfer is only small you may find it is not worth transferring, as the charges may be higher than your funds and therefore any savings Be aware however that banks do tend to drop unwanted surprises on you by way of special fees like: Replacing your credit card if you lose it etc, or going overdrawn on your account, each company has a flat fee such as $10-$15 or a percentage of the payment due. When paying in the bank or at a cash machine make sure you check how long it takes to process your payment as this can range from next day to three or four days. Overdrawn Accounts If you spend more than your credit limit, then most will charge a fee for every time you do it, so you could accumulate quite a few before your next billing date, therefore you should be very careful when going over the limit. Banks normally charge you Lost Card Fees If you lose your card more than once you could be charged a replacement fee they also range from $5-$10 so you see it is worth noting the possibility of these extra fees and then you will not receive any unexpected shocks. Making Credit Payments When you have transferred make sure that you keep your payments up to date and on time, otherwise you will attract even higher fees. Which is more this may bring you to bad credit score. Having no rest period for repaying your transfer, interest will build immediately. However if you have an introductory 0% APR no interest will accrue. As a word of advice it is worth remembering that any payments you make will first be taken from the lowest or promotional balance before they even think of taking payments off your regular balances as regular purchases attract a 9% -18%. It may help if you use one card for your purchases and then pay the total balance each month. And the transfer one purely for your balance transfers. After the Promotional Period Ends Remember to watch for when the promotional period ends because as soon as it does normal interest rates will immediately apply. And whatever APR you have will be applies to all your purchases and transfer balance amounts. As the cash advance APR will be charged to all cash advance amounts. If you default on your agreement the company may well increase your APR on all your balances including promotional balances to a variable default rate. After your introductory Apr you will be charged according to your credit history. If your credit score is bad and the rate gets a lot higher than on your previous card you could lose money. Of course you could always transfer the balance again, but you could then find yourself in a vicious circle. And you do not want it to come back on you later. It is very easy to be tempted to take even more best credit card offers, It does not matter if it is secured credit card offers or unsecured credit card offers, or you think you have found another card that is the best credit card ever you do not want to be stuck in a situation that will cause you more stress further on down the line.
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