Balance Transfer And Credit Cards

Apart from giving the users the facility of easy, safer and faster method of payment credit card provides an additional facility of balance transfer. Balance transfer refers to the transferring of the balance amount payable on one credit card to another one with a minimal interest rate. The following points should be kept in mind when you are going to create a new credit card to avail balance transfer facility:

The initial transaction rate on credit card is low and lasts between six months to twelve months. Major credit card companies do not charge rates on balance transfer. But remember that one late payment can increase your interest rate.

Rebate offers like points, mileage, cash back etc. can be earned using credit cards from air tickets to merchant discounts. You can also earn rewards just by charging gift cards to give as presents. Gift card was the most popular gift item in 2006 and preferred by 60% shoppers after clothing at 73% as the reports given by experts.

Some of the low rate credit card charges a transaction fee, to avail balance transfer facility. Never even try to get those cards. Before closing your old credit card line make sure that you have cleared all the debts in it (i.e. old credit card) and check that the new credit card provider has the same details and confirms that the balance is transferred.

Make it a point that you have closed the credit line of the old card. Keep making minimum payout of your old card, while you avail balance transfer facility, which may take two to four weeks. If you fail to do so then you have to pay debt for both the credit cards, which may create a serious financial problem for you.  Be sure that the company is not charging you anything apart from the interest rate. As the credits cards charges a fixed amount from the customers for just opening the account.

Choose the credit card company who provides best offer and the offer is valid for you. Some companies provide good offer at beginning and latter the charges go up. Do a good research and apply for the one where you are eligible to get the best offer. Suppose you get an offer of 5% initial rate and increases to 20% after six months and in another offer you get 4% rate and increase to 15% after nine months then choose the latter one. Search well to get the best rate.

Other important characteristics of Balance transfer card are:

Low APR rate of 9%-11%

Minimum and maximum credit limit.

Provides security against online fraud.

Will provide you new card in case of loss.

24 hrs customer service

Although you get a lot of features when you have a credit card always keep in mind that you don’t spend too much. You must reform your spending habits so that you don’t fall in the river of debt. Organize your wants and needs before you purchase the next time.

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