Transfer Your Credit Card Balances Successfully

Summary: A credit card system is a type of retail transaction settlement. It is named after the small plastic card issued to cardholders. A credit card differs from a debit card wherein, money is deducted from the users's account on every transaction. In the case of credit cards, the issuer offers a credit for a secified amount of time to the consumer. Credit cards are also different from a charge card, which requires the balance to be paid in full each month. In contrast, credit c...

A credit card system is a type of retail transaction settlement. It is named after the small plastic card issued to cardholders. A credit card differs from a debit card wherein, money is deducted from the users's account on every transaction. In the case of credit cards, the issuer offers a credit for a secified amount of time to the consumer. Credit cards are also different from a charge card, which requires the balance to be paid in full each month. In contrast, credit card holders can 'revolve' their balance with an additional interest being charged on it. Most credit cards follow the ISO 7810 standard and are of the same shape and size. Credit card transfer is an equitable way of managing one's credit card debt. The transfer of balance of one credit card to another often helps with the 'Teaser Rates' or the introductory rates that are generally offered by major credit card companies a couple of times a year. Usually, teaser rates last for either 3 or 6 months once the card is received. An interest rate is levied depending upon the offer available on the card (which may vary from 0% to up to 9%). It relieves the cardholder of a substantial amount of debt in case he/she transfers the balance from a higher interest rate to a lower one. Some salient points to be kept in mind for a successful credit card balance transfer are as follows: 1. Timely transfer of balance of credit card. It should not overlap the relevant period as that may result in interest charges being levied upon the cardholder. 2. Availability of zero credit card money transfer on time. 3. Make yourself aware of the offer available on the credit card. Read printings on the promo sheet to gauge its process. 4. Transfer all credit card balances to normal interest card as the store cards may have higher APR rate. 5. Be well informed about the comparison of the two cards against their interest rates and their credibility. A financial broker can help decide upon the choice of a good and interest free credit card, or a lender that offers zero introductory balance rates. 6. Be aware of the expiry date of the zero balance credit card so that it can be re-applied for well in time. 7. As soon as one receives the new credit card, make a call to the lender to improvise your plan of money transfer from the previous one. 8. Do not opt for offers or privileges that may not be of much immediate use (like insurance policies, etc.) 9. Once the transfer of balance from the previous credit card to the new account is completed, close the former account and destroy the card. 10. As the new account now has zero introductory rate, one would be required a minimum rate to repay every month during the stipulated period. Ensuring all these tenets can help towards a successful transfer of your credit card balance. However, the best way of maintaining one's inflow is to avoid exceeding expenditure with respect to what you earn. Title: Transferring Credit Card Debt May Be Hazardous To Your Financial Health Word Count: 837 Summary: Credit card companies now make it so easy to transfer one credit card balance to another. We get so bombarded with all the advertisements for balance transfers it's hard to decide what company to do business with. Transferring your balance from one card to another is basically the same as consolidating your debt, without actually going through the process of a formal debt consolidation loan. Transferring balances from many accounts to fewer accounts will not necessarily ra... Keywords: financial advice, finances, credit rating, debt free, get out of debt Article Body: Credit card companies now make it so easy to transfer one credit card balance to another. We get so bombarded with all the advertisements for balance transfers it's hard to decide what company to do business with. Transferring your balance from one card to another is basically the same as consolidating your debt, without actually going through the process of a formal debt consolidation loan. Transferring balances from many accounts to fewer accounts will not necessarily raise your score, because the same total amount is still owed. This may actually lower your credit score, because it could be an indication that you are unable to manage your money and need to transfer your balance to make it easier to pay your debts. The only reason you should transfer one credit card balance to another card is to save money and reduce your total debt owed. The mistake many people make is by not reading the credit card agreement or credit card disclosure agreement, which is what the credit card companies are hoping for. When you receive your monthly statement, you are shocked to see the new interest rate and can't seem to understand why your balance has not gone down although you are sending in your monthly payments. It is important to pay off the full balance before the introductory rate special ends. If you charge an item on the new account after the special ends, the interest rate may drastically increase, or it may increase if you make a late payment. If you are unable to pay off the balance before the introductory rate ends, the balance transfer is not worth it. Here is a balance card transfer calculator that will show how much money you can save http://www.credit-card-surplus.com/balance-transfer-calculator.php with a balance transfer. Do some comparison shopping before selecting a credit card that offers an introductory balance transfer rate. Two good sites to use when comparison shopping are http://www.bankrate.com and http://www.cardreport.com. If you are not disciplined, you may end up in more debt than you originally owed due to the guidelines of the new low-interest or 0% interest credit card you transferred your old balance to. To pay the new balance off faster you must pay more than the minimum monthly payment; try to pay at least double the minimum monthly payment. The goal is to get out of debt, and the fastest way to get out of debt is to get a lower interest rate and pay more than the minimum monthly payment. Here are 7 tips to use when considering transferring debt to another credit card. 1. Find out the APR or interest rate of the new card; if the interest rate it too high don't transfer the debt. 2. Ask if you will be charged a fee for transferring your balance; if there is a charge shop around for another credit card. 3. Find out what the guidelines are for the new card. Don't get a new card that charges late fees, annual fees or over the limit fees or increases the interest rate if you make a late payment. 4. Find out how long the balance transfer will take and make sure you continue to make payments on the old account until the transfer is complete. 5. Check your monthly statement to verify that your old credit card company is reporting your balance as zero. But don't be tempted to charge on the old account. 6. Check your monthly statement on your new credit card to verify the balance is reported correctly. If not, write a letter to have your account balance updated. 7. Some companies offer transfer checks that can be used to transfer balances. Be aware that some companies charge a fee for using the transfer checks so keep this in mind when adding up all the fees that can come along with transfer of an old balance to a new credit card. Closing an account and opening a new account affects your credit score in several ways. Ten percent of your credit score considers new accounts, and your score may decrease as a result of opening the new account. If you decide to close the old account, the account was in good standing and you had the account for several years, closing it could decrease your credit score. Since the total amount owed accounts for 30% of your credit score, your score may increase since the balance you transfer will be reduced by the introductory rate special. Do your homework before transferring one credit card balance to another credit card. Also, if you know your credit score from each of the three major credit bureaus, call each bureau and ask how transferring your balance to a new card will affect your score. Make a decision to become debt-free and pay your debt off faster by always paying more than the minimum monthly payment. Transferring a balance is relatively easy, but you must do research to determine if the transfer will affect your credit score in a negative way.