Several leading credit card companies are paying off higher interest charges for high balance transfers among cards. While the results of this move have had a negative effect on cardholders’ balances, there are still a number of cards who are still paying it off, and will continue to do so.
What the Cards Tell You
Credit card companies are using terms and phrases commonly understood within the industry to make the move seem sinister and sinister. For example – where is the ‘best interest rate’? Is there a ‘2%’? ’30 days’? ’75 days’? ‘100 days’? ‘100 cents’?’
‘What is the fee involved with the transfer?’ is addressed in terms of an annual fee, a set up fee and extra fees. Often these fees combined with the reduced amount of time taken to complete the transfer may reduce the benefit of the move.
Keep in mind, though, that by keeping balance transfer cards well secured with the terms and conditions as they apply, many companies are avoiding the tough decision of keeping the balance transfer card for a minimum of 6 year. This will help keep the balance off of the card for more than 7 years.
The best interest rate for a new card is the lowest it gets to be. If the balance increases, many could choose to switch and pay an option fee to get the new card’s lower interest rate.
Moving to a new card, for instance, doesn’t mean you may want to switch, though. Bank of America recently confirmed to Forbes that they are moving their entire high interest mark-up department store credit card business from Secured to Unsecured. According to them, the new, 100% Unsecured platinum card requires an average of 2.75% balance transfer fee, versus the standard card’s 2.99% fee. Additionally, the card will have a 2.25% balance due upon reaching the $5,000 balance limit. That’s right, the bank is making the move to take out the card you had ‘good’ because of you making that move, and the banking establishment is going to make that move to an over-25 card with a better interest rate.
Many cards will charge an annual fee to the moving card, which is an effective way to make the money they have already earned from a new customer. This fee will still be there at the end of the 12 – 24 month grace period, but will be applied to the new balance transferable balance.
Keeping the Balance in Savorites
Many card issuers are now moving business from current employees to new users of the card. These new cardholders often include people who are not paying any interest on the card at all, and they will now be able to do so by simply hitting the transfer button on the ‘Transfer’ page on the web.
This move is ideal because so many card holders will no longer have an excuse to be late on their payments. This may mean more money being made to new debtors hoping that the payment clears within the grace period. Now that would mean a missed payment or not being able to get a new card, but that still leaves the card up to the business as well.
Credit Card Debt Cards: The Good, Bad and What To Do
Are you having a hard time keeping up with your credit card bills? One solution might be to consider getting a credit card debt repayment plan. Not in the literal sense, but it really might. Credit card debts really are pretty bad, and you need to be willing to deal with it. There is something very comforting about getting a prepaid card and taking out a line of credit–a good thing, since it means that you are saving money while you are cutting back on paying it off. In short, using a prepaid line of credit really does make a lot of sense.
Most people need to find some other means of getting out of debt than a line of credit. The best place you can be if that is your only avenue is to find a prepaid credit card is to find a credit card debt consolidation loan. This requires that you consolidate your other credit cards into one, which is an expensive operation and will cost you a significant amount over time. However, you certainly won’t be left without a good debt consolidation loan–even without the bank to sort this out. The way that most banks deal with credit card debt is by talking to the customer. Just about anyone can help consolidate all or most credit card balances into one low-interest account. The process is basically the same, except this time you pay it off and keep the interest in the account. The rate of interest is usually a percentage, and you can make a decent payment if you happen to be paying more than that.