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Balance Transfer Credit Cards

The interest rate you are charged for a balance transfer credit card is a great inducement to transfer your existing balances on the card to the new card provider in case you fail to make your payment on time. Although you would not pay an interest on a debt with a higher balance on the new card, it would be better not to bet your bottom dollar than lose some money on bad credit. By paying off your credit card, you can lower your entire monthly bill every month (which was about $40).

Balance transfer credit cards offer a convenient route to transfer outstanding balances on an existing card. It is also a good way to learn your credit worthiness. There was not ever any chance of balance transfer credit cards offering the free grace period grace period that other people will find irresistible. The savings age for you is 60. That’s only three years. That’s the equivalent of owning a car. (Credit cards with higher interest rates often operate with a gas tax exclusion.)

You’ve also got to remember that transferring your existing balances to a new credit card provider is not that hard. Just check a little deeper. Some providers charge a 3.99% fee. These fees are imposed for any debt (not just debt you’ve transferred from the old card provider) and cost $39.49 to $99.42 per year. The savings on transferring from one card provider (one full pay off) to another is usually around $17. That’s nearly one full year savings. The number of 0% credit card introductory offers or balance transfer fees is on the yearly per-cardholder average at 4.74% to 5.27%. Of course, there’s a catch. Many credit card issuers offer an introductory 0% interest rate – but only for the introductory period. There are also some provider tie-ins cards which are not secured by a secured security and thus cannot be transferred to the new card provider. This means that the transfer balance will need to be deposited and not be made available to pay a co-branded company for a year.

Balance transfers are a great payment option. As a cardholder you can immediately see that you can benefit. You can immediately pay off this debt within the introductory period when you transfer the new balance on the old card provider to another provider before the end of the introductory period. For example, if you are a student with a $200,000 credit limit you can make it a priority to pay off your credit card debt before you get any graduate loans.

One thing to be sure though – after the introductory period ends use the card responsibly. Paying just the minimum amount you owe on them will allow you to lower, in the words of a co-worker, how much you pay on interest.

Balance Transfer Credit Cards May Be Killing Your Credit Score

Have you been contemplating a balance transfer for a while? Are you aware that one of the leading credit card issuers, Visa, has found itself in hot water?

Now that you have seen the recent controversy over balance transfer offers, it can be tricky to decipher who is really targeting the jugular vein and what the problem is with.

I suggest that you check your credit report. There’s far more to it and the Better Business Bureau has categorized a lot of names that seems to be on the cusp of implosion.

According to the bureau, ‘Credit card companies’ accounted for 56.4 percent of the 3.9 billion consumer’s accounts on June 30, 2006.’ Since that time, they’ve racked up 2.75 million credit-related fines. Don’t give people that credit card for trying to transfer balances on another credit card to feel bad.

Look at your credit score. You should get a middle finger to start thinking of your financial problems of late. You’ll create a huge, negative impact.

The average American family has a credit score of 775,000 plus (average American family takes in 250,000 or 40% of its credit line), while average income is 62% of credit line; the average score in the United States is 632,000.

So, is that a better or worse thing to have than your income? Take the credit card companies’ money and multiply it by 60 to get your total. You get 625,000 x 250,000 = $362,000 on your 2 credit cards. That’s about $10 in monthly credit. Look at what each creditor has used on your financial statements.