Archive for November 2010
Where To Find The Best Credit Cards For Balance Transfers
Credit cards for balance transfers offer special low or zero interest rates for a limited period to encourage people to move their current credit card balances to the offering company. This has been a remarkably successful strategy for credit card companies who wish to expand their customer base. They know that after the introductory period ends these customers will then pay standard interest rates and contribute to company profits. However, even though most people do stay with their new companies and begin to pay interest after their low or zero interest period has ended, you do not have to do this. You can instead choose to transfer your balance again to another special offer card and continue paying little or no interest.
When evaluating credit cards for balance transfers choose a product with a low balance transfer fee, low ongoing fees and charges (preferably none), and a long introductory period during which you will pay little or no interest. The longer this respite from paying interest, the greater advantage you will gain. If you choose to keep transferring your balance to other cards you will not have to do it as often if you choose cards with a decent low interest period.
There are so many credit cards for balance transfers to choose from that it can be confusing. Using a specialist online credit card transfer service can take the stress out of the process and assist you in making the most personally beneficial decision. A good service will have done the initial groundwork for you so that you don’t have to sort the best from the worst offers. Generally speaking, a credit card transfer website will offer a selection of the best to choose from so that all you have to do is choose the most appropriate offer for your particular needs. Usually these sites will also offer an online application service to make things even more convenient and the best ones will also offer a reminder service. You can opt to receive a reminder close to the end of your low rate period so that you can transfer the balance to a new introductory rate card. The longer you can benefit from paying little or no interest, the better your financial circumstances will be, especially if you use some of your interest savings to pay down your debt.
So, if you want to make the best use of credit cards for balance transfers, be willing to transfer the balance to another low interest card at the end of the introductory period so that you will be able to continue saving on interest. Not only will this ensure that your budget can remain relatively unstressed, you can continue to implement a consistent debt reduction plan so that you can quickly become debt free.
It is not commonly known that you can use credit card balance transfers to consolidate, manage and ultimately reduce debt. Yet the decision to do so can turn your finances and your life around. These offers are abundant because financial institutions want your business. However, you can use credit cards for balance transfers to your own advantage with the help of an online credit card transfer service.
Related to : www.myeasypayment.com
Credit Card – Dirty Tricks
There are many of us that have been badly stung by credit card companies that have charged exorbitant fees to use their credit cards. Several years ago an APR of 25% to 29% was common place which in simple terms means that if you borrow £1,000 your interest on that money would be £250 to £290 a year. Criminal when you think of it but I suppose we have to consider interest rates were much higher 8 to 10 years ago and there were fewer credit card companies on the market.
Today the low interest rates that we are experiencing have spurned hundreds of loan and credit card companies cashing in on the cheap cost of borrowing. To get approved for a loan or a credit card nowadays has never been easier. With the advent of the internet you can get approved for a loan or credit card in 10 minutes. So we all have a few 0%, low interest rate credit cards in our bags and wallets but lets find out a bit more about the sting in the tail of these cards.
1. Monthly Repayments:
Well done if you pay your bill off each month in full. Like most of us we only pay off the minimum monthly repayment; this is usually a % of the outstanding balance or no less that £5. Some credit cards will set the minimum repayment on a card at such a low amount that you inevitably end up paying the interest and nothing else. When this happens you end up with a compound interest scenario. Beware you could end up paying off a £2,000 loan for the next 20 years.
2. Credit Card repayment protection (CCRP):
Card companies make a fair amount of money out of you when you use their cards. But wait they want to make some more. Just in case you die or lose your job they will offer you Card protection for a monthly fee. These are usually over priced. Most credit card companies make a fortune out of these policies as most people don’t understand how these fees are calculated so don’t know there true worth. What most people are buying is the piece of mind.
3. Penalty fees:
If you do not pay on time you will be charged a late payment fine. These vary depending on your credit card company. The best way to prevent this happening is to set up a direct debit. You get charged for exceeding your credit limit. Again this is a very sneaky way for the card companies to make money off of us. Most of us will slip up without even knowing it and a charge of £25 can quite easily go unnoticed on our statements. Be diligent and don’t give the card companies any excuse to make these charges.
4. Protection Plans:
This is another juicy money maker for the card companies. For an annual fee you will get protection on your card in the event of them being stolen, lost or used fraudulently. Most credit card companies usually don’t charge for this and will refund you the money for any fraudulent transactions. I wouldn’t suggest getting this.
5. Credit Limit increase:
You had a credit limit of £3,000 and have been diligently paying off your card every month and all of a sudden your new credit card statement says you have a credit limit of £10,000. You probably didn’t ask for the increase but hey they gave it to you anyway. Psychologically this makes you think you have more money to spend but it is in fact a sneaky way of getting you to spend more money on your card. If you don’t need it ask your credit card company to remove the new limit.
6. Foreign transaction charges
It is usually quite convenient to use your credit card abroad on holiday or on a business trip. No need to carry large sums of foreign currency around with you. But wait for it …….. You will be charge for this privilege (not surprised I am sure). You will be charged a commission depending on the amount you spend abroad which can vary from 3% to 5%.
7. Cash withdrawal charges:
Not much new here. If you withdraw money from a cash point using your credit card you will be charged for the privilege. Remember nothing slips through. Card companies can charge in the region 3% of the amount drawn and the bad news as if this isn’t bad enough, you won’t benefit from any promotional 0% introductory offers that are currently running on your card.
As you can see credit card companies make money from us in more ways than we in most cases are aware of. Be smart and remember all these crucial aspects when using your credit card. You may be one of the few that limits the credit card companies from only making the bare minimum from you.
Related to : www.vanguard.com
No APR No Fee Instant Balance Transfer
It can be hard to only have one type of credit card some of the time, especially because of the different stores where a person needs to shop to have what they require and each one may only accept specific types of credit cards. This can mean a person will need different types of credit cards depending on what store they want to shop at, or even for other reasons. Because of the separate fees and APR you may end up being in more debt then you expected and you could even end up owing more then you used. Some of the time this can make a person feel as though it is not worth it to have a credit card, but then what would you do with the debt that you have accumulated and how would you get rid of it or try to make it easier to pay off.
One of the solutions for a problem such as this one or related to this one is to get a balance transfer credit card. These are credit cards where you can switch the debt from your other cards to these card companies and only have one monthly payment. The best part is that some of these balance transfer credit cards have no annual percentage rate or extra fees. This can help you to pay off your debt faster because it will not be being added to by the company who is taking over your payments. This also mean that you will only need to have one credit card with you and so it will not be nearly as tempting to go over a daily budget if you set one for yourself.
Some people set a limit on their credit cards for how much they are able to spend a day, and if you only have one credit card it can make it much easier to only spend a specific amount or under. Getting your financial life to where it should be can help you relax and your social life be more enjoyable.
Related to : www.nissanfinance.com