Free Articles  >>  Business And Finance >>  Page 3593  >> 

Balance Transfer Credit Cards Get the Most From Your Balance Transfer

Do you have a nagging balance on one of your credit cards? Did you know you can pay it off, and save hundreds of dollars at the same time? A balance transfer credit card will help you do just that. This type of card lets you bring over an existing balance or loan and pay it off at a lower interest rate. Here’s how to get the most out of a balance transfer credit card.

Transfer the Balance

Before applying for a balance transfer card, you’ll want to check out your options. First look at the fees involved, as these may vary from card to card. Many companies charge a certain amount to bring over an existing balance. The usual rate is around 3 percent of the total amount, and some cards include a cap of $50 or $75. In most cases, the money you save in interest will outweigh the cost of transferring.

Also compare the interest rates. Balance transfer cards usually come with a 0% APR period. This means that you will have a certain time, usually between six and twelve months, during which you will not be charged any interest. You can use this time to pay off the balance.

Get the Most from it

Once you’ve found the best balance transfer card to apply for, it’s time to pay off the debt. Ideally, you will want to pay it off within the initial zero percent interest timeframe. Say you transfer a balance of $2,400 and you have twelve months of 0% APR. All you need to do is put $200 toward the debt each month for twelve months. Pay that amount at the beginning of each month, or every time you receive a paycheck.

Think about it: if you pay off the $2,400 balance on the card within a year, you will save hundreds of dollars. If your previous card charged 18% APR, and you carried the balance for a year, you would have to pay $432 in interest! That is a significant savings.

If it becomes difficult to pay $200 each month, reduce the amount you pay to $150. Then keep paying that amount until the entire balance is paid off.

Use the Card

Many experts recommend paying off credit card debt before using a new card. This rule of thumb applies to balance transfer credit cards too. Some cards are set up so that if you make new purchases, the amount you pay each month will first be applied to those, and then to the transferred balance. This can make it hard to pay off the balance in its entirety. To avoid problems, don’t use your new credit card right away. Put it in a drawer until you have paid off the balance.

Once the debt is paid off, you can begin using the card. Many balance transfer cards come with additional perks such as rewards programs or cash back options. So when you start shopping with the card, you will receive even more benefits. Try to pay off the amount on the card each month to avoid interest charges and late fees.

A balance transfer credit card can help straighten out your finances. Apply online for one today and you’ll notice the difference right away. Soon you’ll be debt-free, thanks to your credit card.
About Author Stephanie Andrews :

Click Here to Find Balance Transfer Credit Card Offers: <a href="" target="_blank"></a>&nbsp; Stephanie Andrews is a contributing editor of the website <a href="" target="_blank"></a>, a credit card directory where you can apply for a new card with online applications.

Article Source:
Article Url:

Article Added on Tuesday, August 5, 2008
Other Articles by Stephanie Andrews

0 Balance Transfer Credit Cards A Simple Solution For Credit Card Debt
Is this the year you want to get out of debt? For many of us, we’ll answer yes to that question. With the economy tightening on practically a daily basis, many consumers are looking for ways to cut down on expenses and get out of debt. Unfortunately, saying you want to get out of debt is easier than actually doing it. If you’re serious about ending problems with credit card debt, you’ll need a plan that you can stick to. One way to do this is through a balance transfer credit card. It is made...

Six Key Terms to Watch for when you Apply for a Credit Card
These days, it's more important than ever before to understand just what is all involved before you send in a credit card application. So if you're on the lookout for a new credit card, read carefully through the terms and conditions attached to it. They'll give you a good idea of what to expect after you apply. Here are some of the terms to look for when hunting for a new card. Annual Percentage Rate This can vary greatly from card to card, and may even be adjusted according to your credit...

Best Credit Card Offers Five Guidelines For Choosing the Right Offer
You know what you want: a credit card. Finding the perfect one, though, can take some time. In order to get the right card for your needs, it's a good idea to do some research before you apply. Here are five guidelines to follow to help make sure you choose the best credit card offer. Know where you stand You may have an outstanding credit rating, or you may be recovering from bankruptcy. Whether you fall to one extreme or the other (or somewhere in between), there is a card for you. Before...

Instant Approval Credit Cards For an Instant Online Decision
If you look online for a credit card, you'll find that some credit cards offer a feature known as instant approval. The idea of getting something so soon can be very appealing. While this type of card has many perks, it's important to understand what's all involved before you apply for one. Here's the scoop on instant approval credit cards. An Answer in less than a Minute If you apply online for an instant approval credit card, you will usually find out in less than 60 seconds whether or not...

0 APR Credit Cards Are They as Good as They Sound
A growing number of credit cards advertise a 0% APR feature. Essentially, this means you will not be charged interest on the balance you carry for an initial period of time. Not having to pay anything in interest sounds like a great deal, but is it too good to be true? Not necessarily. The 0% APR credit card, when used correctly, can help you out. It can provide you with a short, interest-free loan. It can also help you pay off other credit card balances. To make it work for you, you’ll need...

How to Manage Your Credit Cards
In today's media-minded world, credit cards sometimes get a bad rep. Hearing about the dangers of credit card debt doesn't mean you should throw all your cards away, however. The key to getting the most out of your plastic is to manage it wisely. Follow these tips and you'll not only stay out of debt, you'll also enjoy extra benefits. Carry what you Need The average American has between five and ten credit cards. If you have more than that, carefully go through your wallet to see if you...

How to Rebuild Credit with Credit Cards
If you've had trouble with credit in the past and now find yourself with a low score, you're probably anxious to boost up that number. The good news is that it can be done. With the right plan, you can rebuild credit with credit cards. Here's how. Clean up the Old The first step toward better credit is to get rid of anything that reflects negatively on your credit score. So if you have large, outstanding debts, now is the time to pay them off. Set up a plan to make monthly payments until...

Bad Credit Credit Cards When To Apply For One
If your credit rating takes a hit, you may find it hard to get a new credit card. Lenders today are looking for customers with well-established credit, and if yours doesn't measure up, it can be tough to get approved. This poses a problem for many who have fallen into problems related to the current recession in the country. Bad credit credit cards can be the answer to your credit worries. It's easy to get approved for this type of card, and you can use it as you start working your way back up...

Cash Back Credit Cards Three Ways to Get the Most Cash Back
Cash back credit cards are among the most popular credit cards around, and it's easy to see why. The idea of getting some cash back every time you make a purchase sounds like a good plan, and it can be. To make sure you're getting the best deal possible, however, you'll want to pay careful attention to a number of factors. The following guidelines will help you get the most cash back from your card. Carry No Balance This is the first and most important step to take when you have a cash back...

Student Credit Cards Use Them Don t Abuse Them
Once you start college, you'll enter the adult-world in many areas, including the world of credit. Today, companies offer cards specifically designed for you, the college student. And while these cards give you a chance to access and manage a line of credit, they also have potential downfalls. The biggest potential downfall is, of course, the danger of falling into debt problems. If you graduate with a sky-high balance that you are unable to pay back, you'll be in danger of receiving a low...

Click here to see More Articles by Stephanie Andrews
Publishers / Webmasters
Article ID: 88722
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

216 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Small Business eMail Hosting Provided By AwareIndia

Company IDS