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.
