Category Archives: credit card balance transfer

0% Interest Credit Card Balance Transfers

Though most 0% interest credit card balance transfers are conducted by individuals business can also take part in this balance bargain. Several credit card providers offer 0% interest credit card balance transfer to businesses. Let’s take a look at a couple of these business offers. The first, a Mastercard, offers 0% interest credit card balance transfers for the first fifteen months. This interest rate applies only to the transfers – not to any purchases made during the introductory period.

The annual percentage rate (APR) for the purchases is low however – a good 7.99 percent. The computation for the APR is based on the average daily balance that includes any new buys. There is no annual fee, and this card offers a credit line up to $50,000. The grace period on this 0% interest credit card balance transfers offer is 25 days, and there is no setup or transfer fee. This business credit card carriers a maximum late fee charge of $39, with a minimum of $15, depending on the balance at the due date. The fee for charges over the credit card limit also caps at $39.

With this credit card offering 0% interest on credit card balance transfers, there are no travel, shopping or cash rebate offers. Another of the 0% interest business credit cards offering balance transfers charges an annual fee of $75 and a $35 charge for any additional credit card issued on the account. It does, however, waive the first year’s fee if the credit card application is completed online. Late fees never exceed $30, however, there is no grace period at all. There is also an annual $30 fee for the program that offers membership rewards.

These rewards include reports on expense management, an everyday savings program for purchases such as gas and groceries, and savings with designated merchants in the area of hotel, auto rental, computer equipment and overnight delivery.The third of these business 0% interest credit card balance transfers offers gives five percent rebate on when you fill up at your favorite gas station, and a six month introductory period for balance transfers only. The credit line with this card could be as low as $1000 or as high as $50,000, with an APR approximately 10-18 percent dependent on the business credit worthiness. After the introductory period, the transferred balance carries a low 4.99 percent. That is a fixed rate and will remain until the balance is paid in full.

Effective Use of Credit Card Balance Transfers

Balance transfers were at one time all the rage, and one of the main criteria people used when deciding on a new credit card. First introduced to the UK by Egg towards the end of 2000, a boom was sparked in credit card applications and a new strategy of serial balance transfers was quickly devised by savvy cardholders who found they could avoid interest on their debts by shifting them from card to card, taking advantage of 0% transfer deals.

This practice was hugely popular for the next five years or so, and was costing the card issuers a small fortune in lost interest charges, and so the balance transfer fee was introduced, whereby a fee of between 2% and 3% of the amount transferred was charged, This fee quickly dampened enthusiasm for balance transfers, effectively ending the loophole that allowed free debts. This doesn’t however mean that there’s no point these days in making use of transfer facilities, it just means that a little more care needs to be taken if you’re going to get the best out of them.

The first thing to check is the amount of the balance transfer fee. It’s very difficult indeed nowadays to find a 0% card that doesn’t feature one, although there are tentative signs that this may be changing. It of course makes sense to get the lowest fee possible, although you also need to check if there’s an upper limit to the amount you’ll be charged. For larger balances it my make more sense to have a larger percentage fee with a capped upper limit, rather than a lower percentage with no limit. You need to do the maths.

Next, how long will the 0% rate last? Six months used to be the norm, but now twelve months is increasingly common, with some of the best deals extending to fifteen or even eighteen months. The longer the period, the better. Make sure you take note of when your introductory deal will expire, and give yourself plenty of time to arrange a new 0% card in advance so you can transfer the balance again before interest charges kick in.

Now that you’ve chosen a card and got a great deal, there are a few things to do to make sure you get the best out of it. Firstly, and most importantly, never use your balance transfer card for spending, as the standard rate will likely be not competitive so as to finance the costs of the balance transfer. Also, your repayments will go towards clearing your balance transfer first, leaving your expensive purchases debt sitting untouched, happily building up interest. And, each month, you’ll be charged interest on the interest too, meaning your debt can grow alarmingly quickly.

Also, try to ensure that you never miss a payment or repay late, as not only will you be charged a penalty fee, you might even find that your balance transfer facility is withdrawn, saddling you with interest payments on the debt instead of your nice 0% deal.

Finally, although it’s tempting to use a balance transfer as a sort of ‘holiday’ from your debts, only making the minimum repayments required, the fact that you’re not being charged interest means that any extra repayments you can make are wholly used to reduce your debt, and so a little can go a long way. Try and make use of the opportunity to reduce your debt, even if only by a little, as in the long term debt will always end up costing you – whatever tricks such as balance transfers you can use to postpone that day.

Credit Card Balance Transfer Information You Must Know

Balance transfers from higher interest to lower interest credit cards is a very effective tool for reducing credit card debt. However, you must be sure to read all the fine print in the credit card agreement to see that you are going to truly benefit from the transfer. There are several pitfalls to look out for.

I am currently paying off my second $25,000 worth of credit card debt. I am now down to about $15,000. Both this time and the last time, I have paid very little in interest by transferring to lower interest rate cards, usually 0%, for periods of 12-18 months. There are always time limits on 0% deals, but I have been able to lock in fixed rates as low as 2.9% until the balance is paid off on some of my debt.

First you must comb through the offers you get in the mail and use the internet to do some comparison shopping on which credit card companies are offering the best deals. From my experience, one credit card company is no better than any other. They all have special offers at various times, so just go with the one offering the lowest rate for the longest time taking into account what the rate will go up to once the lower rate period ends. Hopefully, you will be able to transfer the balance again if a better offer comes along. Just make sure you look out for balance transfer fees and late payment penalties.

If there is no balance transfer fee, this will usually be stated on the first page as it is a big marketing plus for the credit card company. If it is not stated clearly that there is no fee than there usually is one. Read the terms and conditions section where they must disclose the balance transfer fee. A common fee that I have encountered is 3% of each balance transfer with a minimum and maximum listed, such as ($5 minimum / $75 maximum per transfer). If there is no maximum listed, watch out, because if the balance you are transferring is big enough, you could be looking at hundreds of dollars just from the transfer fee.

Most credit card companies will penalize you for making late payments. It could be a fee or you could forfeit the lower rate you had locked in. In such a case the rate will usually shoot up to at least the regular purchase rate on the card if not even higher.

If the rate you are transferring to is not going to be fixed until the balance is paid off, definitely take note of what the rate will shoot up to once the lower rate period expires. If you have a fairly good credit history, you will probably be able to take advantage of another balance transfer credit card offer before the rate on your current card jumps. If you do this though, make sure you plan at least a month ahead to have time for the balance on your old card to transfer to your new one.

One frustrating situation that I have run into with some credit card companies on new credit card offers is that they want you to tell them how much your transfer balance is before they tell you what your limit will be on the new card. Don’t panic if this happens. The worst case scenario is that some of your balance might not transfer, but hopefully you will at least get most of your balance onto a lower interest credit card. Then you will just have to keep looking for another card to transfer your remaining balance to.

Finally, once you transfer a balance to a new credit card, set that card aside until the balance is paid off or you transfer the balance to another card. Don’t use it for purchases. Another major pitfall that is easy to fall for is when the credit card company you transferred a balance to offers you something special down the road to entice you to charge purchases on the card. This would be a big mistake, since credit card companies always apply payments against higher interest rate balances first, which also means your minimum payment would jump up.

Credit Card Balance Transfer Information You Must Know’, ‘Balance transfers from higher interest to lower interest credit cards is a very effective tool for reducing credit card debt. However, you must be sure to read all the fine print in the credit card agreement to see that you are going to truly benefit from the transfer. There are several pitfalls to look out for.’, ‘publish’, ‘open’, ‘open’, ”, ‘credit-card-balance-transfer-information-you-must-know’, ”, ”, ‘2012-04-16 12:04:28’, ‘2012-04-16 04:04:28’, ”, 0, ‘http://www.creditcarddebtblog.info/?p=359’, 0, ‘post’, ”, 0),