Credit Cards and Balance Transfer

With a lower interest rate the transfer of balance due on a credit card to another credit card is called balance transfer. Most of the credit cards are now offering this facility to their users. If you are planning to avail this facility from your old to new credit card then you should remember the following tips given below:

--On a credit card 6-12 months is usually given for the low introductory rate. Nowadays almost every credit card companies apply zero percent interest rates on balance transfer. But the late payment made by the customers compelled the credit card companies to raise their interest rates.

--Today in almost every field, from airline tickets to discount goods, points, mileage credits, cash back rebates are offered to the customers. Even pricing gift cards, which are used as gifts today help to raise points. According to the consumer report they expects that within 2006 gift card will be the second popular gift just behind clothes liked by almost 60 percent customers. A few days before giving a gift card as a gift was considered as last minute make up. But now things have changed and gift cards have become one of the most popular gifts given in any occasion and people also love to accept this as a gift.

A few cards applies transaction fee for transferring the balance from one to another credit card. I would personally suggest you that keep away from these credit cards and try some other one in the market.

At the time transferring the balance make sure that you previous credit card company have sent you a statement which clearly shows that you have cleared yours balance and check whether the information is similar with the billing statement of yours new credit card and also the amount is same in both of them. This will ensure you that all the balance is now transferred to the new credit card and only after this you should close the line of yours old credit card.

The balance transfer procedure takes a time of 2-4 weeks and during this time you keep making as minimum payment as you can in yours old credit card. After the balance transferred the old credit line should be closed immediately; otherwise there will be a lot of balance in yours old credit card as well as the new one also with which you have to end up and it remains as a debt forever.

Also make sure that the bank is not applying any additional charges along with the interest rates. A few banks apply a monthly or annual charges just keep their card in your wallet. I would personally suggest you to ignore such banks if you are able to see a little more advantages in some other places.

Check that yours new credit card applies the lowest rates and highest facility to you. But with the time rates may increase along with the time. For example you receive a 5 percent interest and it surely grows up to 20 percent within 6 months but some other one receive a rate of 4 percent which would increase up to 15 percent in 8 months. So be careful about that.

The other characteristics of a balance transfer card are follows:

--APR rates should be within 9- 11 percent.

--Generally three other rates such as the introductory rate is 0 percent, the monthly rate ranges from 0 – 1.5 percent, and the annual rate varies in between 9- 11 percent.

--Minimum and maximum credits should be gain.

--The company should give protection against online fraud during online purchasing.

--Card replacement in case of losing it.

--All time customer support.

Most of all you should be careful about using the credit card and control yourself in using it. You should check yours spending and learn to differentiate between yours needs and wants.

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