It's a plastic ocean out there with numerous banks and financial institutions scrambling to sell you their 0 balance transfer credit card. And there are so many kinds of credit cards available in the market that a credit card user gets intimidated and perplexed about which card to choose.
The result is that he often chooses the wrong card and then regrets his decision when he's already neck deep in problems with his credit card account.
So, never pick up a 0 balance transfer credit card without considering some crucial factors. Here is a small guide that can help you decide which type of credit card you must pocket.
Guidelines to choosing a credit card
Ask yourself, "Why do I need a new credit card?" Is it because your current credit card carries a higher rate of interest, or is it because you want to use it exclusively for your business, or is there any other reason? Zero in on the reason why you need a new credit card.
Once you have the reason, you must check out what kinds of credit cards are available in the market. Here is a brief dossier:
(i) Regular cards/Business cards are cards that give you a spending limit based on your income tax papers. The business card is just like a regular card, except that it comes with some schemes that dangle carrots before you.
(ii) Charge cards are cards that are linked to your bank account and they charge your account the minute you swipe the card. You cannot carry forward a balance with a charge card.
(iii) Reward cards are credit cards that earn you points every time you swipe them and such points are redeemable for some goodies (air tickets, supermarket goodies, etc.) at selected establishments.
(iv) Then there are cards for people who have a bad credit history. These cards carry a low spending limit and a higher rate of interest. (v) Prepaid cards are another type of credit card that are mostly used by teens and some kids too. The parent makes a deposit and the card is valid until the deposit is used up.
(vi) Secured credit cards require that the cardholder deposit a certain percentage of the credit limit upfront into their bank accounts.
Once you have decided what kind of a credit card is right for you, do a comparison between different brands of cards. Compare their rates of interest (APR = Annual Percentage Rate) and also check whether they carry an annual fee.
What grace period or no-payment period they offer you, how do they calculate the interest, whether the rate of interest is an introductory rate, whether rates of interest will vary on Cash withdrawals, billing cycles, penalties on balance transfers, and so on.
Voila, there you are! If you follow these basic guidelines, you will be successful in pocketing the right 0 balance transfer credit card that suits your needs. And that is the easy part,the difficult part lies in maintaining a credit card and keeping your credit history clean.
But, that's another story!
Del Boy
http://www.articlesbase.com/finance-articles/0-balance-transfer-credit-card-are-they-worth-it-125011.html
how can i transfer cash from my cashu account to my paypal account?
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Do balance transfers on credit cards worth it?
Or do they leave you further in debt than when you started…?
they do work if you transfer to a card with a lower interest rate,
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Don’t do it. It’s not worth it!
It will put you in a higher risk category and they will raise your interest rate.
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It would be worth it if you were to transfer the balance from a CC with a high interest rate to a CC with 0% interest for a year. Then simply pay off the balance in the year and make no new charges, you would save a ton of money on interest rates from former card.
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Yes and no. Yes, a balance transfer can help you pay your debts faster because balance transfers are offered at very low rates to attract new card customers. Sometimes, some cards even offer zero rates. But before you transfer balances, look at your monthly budget if you can really pay the transferred balance within the time frame. Because if you don’t pay the transferred balance on time, the balance would revert to regular rates, which are high. And make sure you don’t use up the increased credit limit in the card you are transferring from. Remember, you’re reducing your debt, not increasing it.
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Maybe. There’s usually a fee (typically about 3%) to transfer. Is the difference in interest rates enough to exceed the transfer fee?
If you shift the debt, are you disciplined enough to pay off more of the debt? If you just pay the minimum payment, you’re not making any headway.
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sometimes, if you keep doing it they will eventually raise the rates because they know you are going to eventually transfer it somewhere else. go to crystalcreditsolutions.vpweb.com. They really helped out my parents work out a great payment plan, it never hurts to get a second opinion.
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Thank you for sharing things about credit cards.