The Credit Card Balance Transfer is an excellent way to consolidate your debt. Yet, there are some drawbacks associated with this step. For one thing, the credit card companies do not hold the lender responsible if you do not pay your entire outstanding debt monthly through the entire card. If you pay off your debt at the end of the month, but your loan company does not pay on you, your loan company will not know that you owe money and so may immediately raise your interest rate to an imprecise 25%. This will be a financial headache for you, and you will find possible solutions to settle your debt down the road. However, you need to remember that the money set aside for this purpose may become an expensive drain on your wallet or purse (because you owe money on that meager sum). Before you begin, however, be aware of the possibility of getting turned down by a few lenders or banks (too many makes too late).
Another drawback associated with the ‘balance transfer credit card’ move is the interest rates. There is no free lunch in the hole of a zero percent interest rate. If you are paying high interest on your credit card debt, don’t be discouraged by the realization that you can avoid the trouble of paying back your entire loan later. There is a chance that your credit card debt is as large as it gets and you can buy one last piece of junk for your hard earned money.
To avoid that, however, you must be prepared for the unexpected and just put some serious cash on your hard earned money. You may find the move of the balance of your new credit card from your own credit card to a new credit card is very handy and not something you should ignore. On the other hand, if you are planning to take out any other kind of loan, the first thing you should do is analyze exactly how the new card will impact you.
Do you own a new vehicle? Is it taxicable? Is there a limit to the number of miles that you can buy per month? Is it tax deductible? Isn’t the interest rate you pay a bit high? How long are the introductory offers? This is a good opportunity to look at other options for improving your credit card debt.
Keep an eye on the news. Time periods change, but the passage of time is certainly something to keep in mind. Now is the time for you to evaluate completely the following:
How long is the grace period? Does it last for more than 15 months?
Does it offer you finance charges on your outstanding credit card debt? Is there an ’emergency’ period?
Does the interest rate make the finance charges on your new card too expensive?
What is the credit limit and how does it affect the credit limit?
How long do the introductory offers last? Does the credit card lender apply rates toward your balances?
Will the interest rate be applied toward your next available loan or toward the balance of your old credit cards?
Are the fees and finance charges subject to change? You’ll find out soon whether or not they are. You’ll also find out whether or not you have to pay a fine or pay a fine and whether or not you can afford to reimburse the lender. In the end, it’s your credit, not your money. This is the best way to avoid any ugly surprises that will come your way.
Balance Transfer Credit Cards Available All Over The World
The interest rates charged on credit cards are usually subject to changes throughout the year throughout various markets across the world including across the globe. While other currencies may come into play as well across all times just as well as worldwide, all other times also have dynamic trading systems. All times are variable and with that there are different moods that will fluctuate with the time, place and day of the year.
What is a balance transfer?
An interest rate transfer involves converting a standard APR credit card balance to an unusual interest rate credit card; the actual APR will vary depending on the particular card account held by the customer.
The interest rate for the transferred card may be any APR credit card, which could be any APR, which may be any APR with 5 to 9%, APR for balance transfers to be made at the end of the introductory period and rate of interest applicable to new purchases and those purchases which the transfer was made on the first card balance made the previous month.
When a balance transfer is to be effected
The first principle transfer will be effected from the APR card which was to come available at the time the balance transfer was to be taken.