To transfer credit card balance are when you transfer one credit card debt to another Credit Card company and the usual reason for this is to get a better Interest Rate with a lower monthly fee.

The best Interest Rate you can get is 0% on a balance transfer. But, word of caution, make sure its not an introductory offer.

Credit Card companies have a habit of giving you 0% interest rate for about 9 months and then slap a 9 – 12% interest rate after the introductory period is up.

You can go with the introductory offer and play the credit card game like my friend, but be sure to transfer again before the new rates kick in. Many families are in debt to the tune of $15,000 or more and the interest rates can vary, depending if you are on fixed or variable rates. This can see a significant increase with your interest rates even if there is a difference of 1%. Balance Transfers can save you a lot of money.

When considering an offer from a Credit Card company there are some things to watch out for. Depending on your Credit Score will usually determine how good the offer is from a Credit Card company. For example, if your credit score is in the 720 range, you are almost guaranteed a good rate but don’t always bank on this.

Credit Card companies have been known to change the rates and with the new laws coming into effect this is not out of the question.

On the other hand, if your Credit score is in the lower range and you get a good offer, don’t make the mistake of thinking that you have more money to spend, this is not the case. Remember, the reason for a Balance Transfer is to lower your monthly costs, not increase them. If you are serious about reducing your debt, dont play the credit card game of robbing Peter to Pay Paul. This does not always work and will eventually catch up.

Credit Card companies are in the business of making money. Just because they loan you money, doesn’t mean they don’t want to make interest at 0%, which means nothing for them. Just look at the fees if you don’t make the regular payment and you’ll see what I mean.

It’s all a numbers game with Credit Card companies and the odds are always in their favor. You’re best course of action is to shop around and compare rates. You definitely want to avoid Debt Consolidation

For example, say you forget to switch before the intro period is up, or they change the rates, or you missed payment date. All these variables are on the side of Credit Card companies to make more money and simply from you not doing your homework.

A few things to watch out for when you get an offer: If you apply to a company for a Balance Transfer be sure that whatever rate you get is the same rate you applied for. It has been known to happen on further checking of your credit history, that this rate will change and they will hope you accept it.

Please read the fine print on the application. Be sure that whatever Interest Rate you are offered is for Balance Transfer and for New Purchases. Sometimes rates on new purchases can be much greater than what the original offer was for.

Again, read the fine print on the back of the application and make sure these rates are the same. Always shop around for the best Balance Transfer Rates but remember that the introductory rates will change, so don’t let them tease you into a false sense of security.

Remember the other things you need to look for is a card with no annual fee and a 30 day grace period, fraud protection, cash back bonuses. These little perks can mean a lot if you use your card wisely.

When you transfer a balance from one card to another, be sure there is no charge for this service. Some companies do charge a fee for this service.

You can learn a lot by checking the fine print to see what exactly the offer is and remember by law they are required to disclose this information.
The most important part of a Credit Card Balance Transfer is to check the Default Rate. This is where you are penalized for a late payment and depending on the company, if you are late one time the introductory rate goes out the window and you will get a shock to your family budget of a higher penalty. Sometimes this can be as much as 7%. The best way to avoid this is to have your payments automatically deducted from your bank account.

Always try to pay more than the minimum monthly payment, even $10 more will make a huge difference to the overall loan.

If you are on an introductory offer check your calender and make a note of when this time is up. Allow yourself at least 1 month to look for new offers on balance transfers. You will not get warning from the credit card companies of when the teaser rate is up. Always shop around for the best possible Credit Card balance transfer and remember to read the fine print, it can save you a lot of money.

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Filed under: Credit Card Relief