Balance Transfer Tips
By Jason Gluckman
Credit card holders often resort to balance transfers in order to escape the burden of high interest rates. A balance transfer looks attractive in the beginning, but it may increase your debts in the long run. Credit card holders should consider a few things before switching over to a low-interest credit card.
An important factor to be considered is how long the new lower rates are valid. Lower interest on a card is usually valid only for a few months. Some cards maintain low rates for five months, while some maintain them for a year. Once this low interest period is over, the interest rate is enhanced to the normal level. Any late payment can result in a sizeable increase in interest rate. Some companies even charge a transaction fee for credit card balance transfers.
A common mistake that a cardholder makes when applying for a balance transfer is improper completion of forms. Incomplete information can result in a delay or cancellation of the transfer. The credit card balance transfer offer should be read carefully before completing the forms. Very often, information provided in credit card balance transfer brochures may not be easy to understand. Credit card companies usually print the attractive information in bold or normal letters, while the important terms and conditions are printed in small fonts, which many people fail to notice. The actual cost involved can be higher than what is advertised.
People often make the mistake of ignoring their old credit card accounts following balance transfers to a new card. Minimum payments on the old card should be continued since a balance transfer takes about a month to post to the account. Any delay in payments can lead to a late fee and an additional penalty rate. On completion of the balance transfer, the new card company sends a notification, which, in turn, should be verified with the old card company. Once the balance transfer is complete, the card holder should keep the new card for at least a year; changing cards very frequently can damage your credit history.
Balance Transfers provides detailed information on Balance Transfers, Credit Card Balance Transfers, Card Credit Interest Balance Transfers, Interest Free Balance Transfers and more. Balance Transfers is affiliated with Guaranteed UK Credit Cards.
Article Source: http://EzineArticles.com/?expert=Jason_Gluckman
Credit card holders often resort to balance transfers in order to escape the burden of high interest rates. A balance transfer looks attractive in the beginning, but it may increase your debts in the long run. Credit card holders should consider a few things before switching over to a low-interest credit card.
An important factor to be considered is how long the new lower rates are valid. Lower interest on a card is usually valid only for a few months. Some cards maintain low rates for five months, while some maintain them for a year. Once this low interest period is over, the interest rate is enhanced to the normal level. Any late payment can result in a sizeable increase in interest rate. Some companies even charge a transaction fee for credit card balance transfers.
A common mistake that a cardholder makes when applying for a balance transfer is improper completion of forms. Incomplete information can result in a delay or cancellation of the transfer. The credit card balance transfer offer should be read carefully before completing the forms. Very often, information provided in credit card balance transfer brochures may not be easy to understand. Credit card companies usually print the attractive information in bold or normal letters, while the important terms and conditions are printed in small fonts, which many people fail to notice. The actual cost involved can be higher than what is advertised.
People often make the mistake of ignoring their old credit card accounts following balance transfers to a new card. Minimum payments on the old card should be continued since a balance transfer takes about a month to post to the account. Any delay in payments can lead to a late fee and an additional penalty rate. On completion of the balance transfer, the new card company sends a notification, which, in turn, should be verified with the old card company. Once the balance transfer is complete, the card holder should keep the new card for at least a year; changing cards very frequently can damage your credit history.
Balance Transfers provides detailed information on Balance Transfers, Credit Card Balance Transfers, Card Credit Interest Balance Transfers, Interest Free Balance Transfers and more. Balance Transfers is affiliated with Guaranteed UK Credit Cards.
Article Source: http://EzineArticles.com/?expert=Jason_Gluckman
posted by Orce Dimitrov at
4:05 AM
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