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CREDIT CARD TRANSFER DEAL

A credit card transfer deal is one of the popular ways to come out of bad credit card debts with high monthly interest rates, and move all the balances to a low rate credit card scheme. Many cards offer 0% balance transfers. These are actually not pre confirmed offers, but given only after examining your credit reports. Those with bad credit history may not get such offers. Still, moving all the high interest charged balances into a consolidated credit card with a lower interest rate can save a lot of money.

LOW RATE BALANCE TRANSFER CARDS

The 0% balance transfer is meant only for those with good credit scores and credit history. Other wise you may get a low interest balance transfer rate. Another important factor is whether the rate is fixed or variable. Some card issuers offer a low, fixed rate balance transfer rate.

Transferring your high interest balances to low interest accounts makes a lot of sense. Why pay thousands of dollars and remain stuck with old credit cards in a fast moving, consumer friendly economy? The same system allows you to transfer all your dues and balances to a consolidated account with a low interest rate, saving thousands of dollars.

An average American has typically hundreds of dollars as dues on several credit cards. A difference of few points on a credit interest rate means valuable dollars saved over several months.

BALANCE TRANSFER FEES AND HELP TIPS

• Although the transfer interest rates may be zero or very low, there may also be fees - expressed in percentage of the transferred amount - associated with a transfer and should be kept in mind.

• Do not stop paying the dues of the old cards unless the balance has been actually transferred, or you may have to pay late charges.

• If you have taken a secured credit card, you may be required to keep a certain balance in the collateral account for some time to ensure billing of all the previous dues.

• Many other debts – car and appliance loans – can also be transferred to low charging credit cards.

A point to keep in mind with balance transfer cards – the low rates may not be applicable to new purchases, or you may have run out of the introductory period for them, and getting a high rate for them. In such cases, all your payments would first go toward clearing the balance with the lower rate. The higher rate balances would remain unpaid, and you would be paying interest for them for a much longer period than you would like to.