Balance Transfer Credit Cards

Credit card balance transfers can be used as a legitimate way to repay debt. The second main advantage of this type of credit agreement is that you can vary the amount ryou are paying back each month to suit your needs. I'd always recommend repaying the maximum amount you can afford so the debt reduces as quickly as possible however if you need to pay less in certain months then the option open to you.

You can of course choose to pay less if you need the money elsewhere for example paying higher interest debts. The third main advantage of using a credit card balance transfer to repay debt is that you can prioritize your debts so higher interest debts can be repaid first. Most credit card companies offer a low introductory rate and even a 0% introductory rate so if you are not able to transfer your entire debt to the card you can concentrate on repaying the other more expensive debts first. This ensures your debt costs you less in the longer term.

There are a number of things to remember if you choose to repay debt using a credit card balance transfer. The most important rule is to remember to always make at least the minimum payment on time to the credit card company. If you fail to do so you will most likely incur additional charges and possibly lose your introductory rate making this type of debt very expensive.

Additionally late payments may result in more difficulty obtaining credit in the future. If a late payment is unavoidable contact your credit card company as soon as possible and explain any reasons why. A second rule of thumb is to remember is to pay the most expensive debts first. If you have additional forms of credit that are more expensive concentrate your payments on these to reduce your overall cost of borrowing.

Once you have repaid the most expensive debt move onto the next most expensive and so on until your debt is repaid. The third rule you should try to remember is to always repay as much as possible from your debt. Your introductory rate won't last forever and the faster you can repay the debt the sooner you can forget about it. Try to not add additional spending to your credit card as this will be charged at a higher rate of interest than the balance transfer and it will increase the amount you need to repay.

When you sign up for the card make a note of the length of the introductory period of the balance transfer. As you approach the expiry date start to look around for a new credit card to transfer any remaining balance to. Don't worry if you get turned down for the first one you apply for, there are lots of credit card companies out there offering introductory balance transfer rates.

Once you have arranged a new card, hopefully at 0% interest on balance transfers, move your money from the old card to the new and destroy your old card. You'll only pay a small fee for transferring the debt and if the rate is low enough you'll pay no interest again.

Try to ensure that you live within your budget and do not use easy credit as a way of purchasing items. Any money spent on credit cards will eventually have to be repaid or you'll face painful bankruptcy procedures that may affect your credit rating for years. It's possible to clear all your debts using this method, depending on the size of your debts and the amounts you can repay each month. It may take a long time but you will eventually be debt free. I myself was in debt for several thousand pounds and used the above method to clear my debts and now live a debt free life.

Try to find a balance transfer deal that gives you at least 6 months 0% introductory APR so that you don't wind up making balance transfers too often. Be sure that you read through all the fine print very carefully. Try to avoid using the convenience checks. Many credit cards will include convenience checks along with your regular credit card statements. A convenience checks is usually equivalent to a cash advance, and cash advances almost always carry the highest interest rate.

Sometimes a credit card will give you a good interest rate if you use their convenience checks for making balance transfers. Just be sure that you read the fine print thoroughly so that you fully understand the terms before using their convenience checks. There is good news about convenience checks. Some credit card companies will provide you with blank checks that are covered under their 0% intro APR balance transfer offer. These blank checks can be very useful as you can use them for whatever you want.

A lot of consumers use these blank checks as a method of obtaining an interest-free loan, but they can also be used to open a high-yield savings account or to purchase a certificate of deposit. Keep in mind that once the 0% introductory APR period is over interest charges will begin to accrue so it is recommended that you pay off the balance before, or as soon as, the interest-free period ends.

If you are not absolutely certain as to whether the checks you receive are included in the 0% introductory APR offer then take a few minutes and call the credit card company to ask. Whenever you call your credit card company, be sure to jot down the name of the person you speak to in case the representative makes a mistake.

Don't get carried away with your credit card applications. Regardless of whether or not you are approved or rejected, if you file too many credit card applications within a short time period your credit rating could suffer a downgrade. Many credit card companies own multiple credit card brands. Before submitting an application for a balance transfer, be sure that you are dealing with a credit card company that is different from the one you want to transfer a balance from.

If you try to transfer a balance from one account to another, and one bank controls both credit card brands, then your application will almost certainly be rejected. Remember that inquiries into your credit report may have a negative effect on your credit rating; this is especially true if the inquiry results in an application being rejected.



If you already have two different credit cards that have been issued by the same bank or credit card company, you can usually consolidate the balances into one credit card account. If you have questions about this call your credit card company to discuss consolidating your credit cards. It is very important that the account to which youll be transferring your balance has a high enough credit limit so as to avoid getting into trouble with fees.