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Are you looking for the best credit card? Most of us cannot afford to pay for a house or automobile, with cash. Thus, it is important for us to establish good credit. However, sometimes we find ourselves behind on some of our credit card payments. What can we do? The Balance Transfer Credit Card is one of the most viable options for us.  

 

Why would you be interested in such a credit card? Well, consider the fact that the average annual percentage rate on a typical credit card is 16%. This extremely high rate means that we often find ourselves in an uphill battle, losing ground against a sky-high APR.

 

Enter the Balance Transfer Credit Card. What exactly is this type of credit card? The Balance Transfer Credit Card lets us consolidate debt onto a single credit account, by transferring balances from other cards. Here is how it works. Companies transfer balances from old credit card(s), to your new Balance Transfer Credit Card, sometimes at no charge.

 

Then a grace period usually exists, during which you pay 1% or 2% interest on the transferred balance, You can even find 0 interest balance transfer credit cards that charge 0% interest during the grace period.  How long does the grace period last? The duration typically ranges from 6 months to a year. That can provide you with some quality time to start paying down your debt.

 

In theory, as soon as the introductory interest rate expires, you could then retransfer your balance to a new card, and avail of fresh 0 balance transfer credit card offers. In you take this action, make sure to close your old account. Having more than a couple of credit card accounts open could harm your credit score.

 

Finding the best balance transfer credit cards is not rocket science, but it will require you to do some legwork.   Here are some tips that can help you to find the best credit card balance transfer deals:

 

1. You had better shop around

Different Balance Transfer Credit Cards have their pros and cons. It is advisable to search for independent sources that will provide you with unbiased information about the various types of companies and products available in the Balance Transfer Credit Card market. You could also contact the issuer of your current credit card, and learn if they are offering any special promos that could provide you with extra benefits.

 

In the Information Age that we find ourselves in, people and companies can zap huge amounts of data to all corners of the globe, in seconds. One of the major issues involves the security of personal information. When searching for the best Balance Transfer Credit Card, make sure that you can apply securely online. While planning to transfer funds, you do not want unscrupulous people transferring your personal information, without your consent.

 

2. Get out your magnifying glass to read the fine print

This task could be about as thrilling as getting a root canal, but you should do it nonetheless. Sometimes credit card companies may list hidden charges in fine print. Find answers to the following questions:

 

• How long is the introductory period?
• During the introductory period, if you miss a payment will the company automatically boost your rate?
• Is there a transfer fee on a particular percentage of the transferred balance? It is important that a credit card company place a cap on that amount. Otherwise you could lose a lot of ground (and money) on the transfer.
• Is your credit good enough to qualify for the advertised introductory rate?
• Does the advertised rate apply to balance transfers (and/or) purchases?
• What is the APR after the introductory period expires?
• Is there an annual fee or joining fee? If so, can the company waive it?

 

3. Collect and select

After finding the Balance Transfer Credit Card that best suits your personal financial situation, apply for your new credit card and be meticulous in completing the balance transfer form. You will need to include pertinent account details about your current credit card, to the new credit card company.

 

4. Out with the old and in with the new?

If your application is accepted, the transfer of your funds will take roughly 2-4 weeks. When the transfer is complete, you will receive a written notification that the balance of your old credit card is zero. You can then close the old account. If you keep it open, avoid making any new purchases using your old card, until you have paid off 100% of the balance on your new card.

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This entry was posted on Wednesday, August 6th, 2008 at 9:21 pm and is filed under Finance industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.