Move On To A New Credit Card

In these days credit card is the safest, easiest and quickest process for shopping anything from shops. In this market of competition many credit card providers are competing with each other to raise their business and for this reason they are now offering many facilities to the customers. Among them balance transfer facility is a facility that most of the credit card provider offers to the customers. It means transferring of the outstanding or balance amount payable on one credit card to another one with a minimal interest rate. So at the time of applying for a credit card you should remember this facility and also keep the following pointers in mind.

i)              Balance transfer facility contains a low interest rate and many of the major credit card companies like VISA; MASTER CARD etc. have zero percent rates on balance transfers. But due to the late payments of customers your credit card company is being compelled to increase their interest rates at the time of late payment.

ii)             From a round-trip airline tickets to merchandise discounts points, mileage credits, and cash back rebates may be earned at ease and even using a gift card using as a present can increase the reward points. During 2006 gift card will be preferred by 60% shoppers just behind clothing at 73% as per Consumer Reports. Gift cards are now becoming the most popular presentation at any occasion and people are also expecting gift cards as a present.

iii)             A few low cheap credit cards sometimes have a transaction fee, as they want to avail the balance transfer facility. But as soon as you hear of something like this you just escape from there without the credit card being offered to you and that will be profitable too you also.

iv)            Before closing your old credit line you have to be ensure that your old credit card company has sent you a bill that contains every information about your outstanding balance and also make sure that those information is similar to the billing statement issued by your new credit which confirms you that the balance is indeed been transferred to your new credit.

When applying for the balance transfer facility, you should make minimal payments on your old credit. This certain process normally takes about 2-4 weeks to complete. But strictly remember to close your old credit line after completion of the process, otherwise you might be succumbed of charging credit to your old one and in a few days you would leave with 2 cards and very weighty debit.

 You should be aware of the terms and conditions of your new credit card and check out for any kind of additional charges to the interest rate. Some credit card company charges a certain amount that may be annual or monthly just to have the account. I would personally feel you should apply for those kinds of credit unless you can find clear benefit in other places.

Make sure that you are also allowed to the offer rock bottom rate, which speeds up by a large margin after an introductory period. For example you may qualify an initial rate of 5%, which may be increased up to 20% after just 6 months, but someone else may gain the initial rate of 4%, which increases to 15% after 8 months. So try hard to get the best rate. 

Other Balance transfer card features include the following:

i)              APR rate should be in between 9-11%.

ii)             Generally the three interest rates i.e. introductory, monthly, and the company should offer annual. The introductory rate is usually 0%, the monthly rate ranges between 0 – 1.5% and the annual rate varies between 9-11%.

iii)            Minimum and maximum credit limit.

iv)            Protect against online frauds at the time of purchasing on the Internet.

v)             In case of loss card is to be replaced.

vi)            All time customer support (24/7/365).

Except all these the best protection against the troubles of the credit card as well as credit card debt is to control your spending habits. You have to be careful when to spending your credit balance and make a small difference between your needs and requirements.

 Setup a credit card processing merchant accounts to accept credit cards today!