With the new credit card rules, customers are always charged at the end of the first billing period as well as new purchases. Some of these charges are unavoidable, but can be paid off at the time of purchase. For the sake of comparison, here’s a brief overview about the new credit card credits:
Annual Percentage Rate (APR) – This is the annual percentage rate (APR) that applies to the balance transfer’s total balance. The rate, which is displayed in the upper right hand corner, is not the actual APR but is the amount, typically quoted, that reflects in the balance transfer transaction (at a higher rate) starting from the card’s original balance.
Balance Transfers – These are typically referred to as the ‘cash advance’ category. In this category, the card provides the customer with an incentive to pay a certain amount in advance for the purchase or purchase-in this case the balance transfers were made. Most issuers will offer a certain figure, typically between 1 percent and 1.5 percent of the money transferred.
Insurance – This means any damages your card’s APR will incur incurred from any purchase that does not be refundable – for example, a charge that you pay for the air-travel you requested. Many include ‘Insurance’. Yet, only a few issuers offer these type of premium services to customers over the age of 62.
These are often referred to as ‘charge-backs.’ In this case, the credit card issuer simply says yes; however, there’s no guarantee that you’ll be eligible to use these services. You can be sure that it will end up costing you more than what you’ll pay if you do prove that you can pay even balance!
Charge-backs may become effective after a certain date, but can be cancelled and/or removed at any time.
Credit Card Balance Transfers – Options You Need To Consider
Transfers are situations where you are able to reduce or eliminate a large amount of the credit card balance for future use instead of interest. Transfers are advantageous for people who want to transfer all or most of their credit card debt to a lower interest card but can still allow them with lower payments to make other payments. However that option is usually not available with a credit card that also includes balance transfers.
The best way to negotiate balance transfers is to contact your credit card company first so you can be contacted on the phone to inform about possible balance transfers being conducted. The best way to do this is to visit finance.com and type in the requested information to your email address but before typing in the desired information, delete the unnecessary words like “delete,” or “exchange.” A legitimate website will usually just redirect you to the “select page” or “Consumer Services” page. This can also be the proper place to go to get your message.
Some credit card companies will consider any possible balance transfer that will improve their bottom line by up to or substantially less than the minimum payments on the transfer. You will then have to negotiate the transfer prior to receiving any final figures. So, be sure you are familiar with and understand the options available to you before you complete that Transfers with Your Card.
For many of credit card companies, balance transfer offers are an integral part of their strategy. They use them to entice their potential clients into transferring balances to their card at substantial savings. Therefore it is important that you compare any balance transfer offers before you decide which card to transfer your debt to. Some companies offer a $300 to $1500 savings on their balance transfer cards. If this is the starting salary for your company, a little more will be your saving grace. Others offer only 6 months of 0% interest on transfers and 5 years of 0% or higher interest on transfers. Make sure to compare the fee upfront and the cost incurred. Make sure you read the fine print before you commit to anything. You don’t want to have to pay a small fee just to save money.
When choosing a new credit card, you will want to compare any balance transfer offer. You could save $100-$500 either way, depending on the type of offer you receive from a new company. This should give you a starting salary and flexibility to evaluate the type of plan you are using.
For a little more money you can save your whole life, you could actually save $200-$500 each year. That’s worth saving! But what about the interest expense? Many people have a tendency to over borrow at one time. So, you may have concerns if you have a debt that cannot be cleared quickly. This can sometimes be addressed by choosing the right balance transfer card.