Finance Tips

In the current financial climate, many of us are looking for ways in which to reduce our debts and save money. If you’re looking for a new UK credit card and you have balances left to pay on other credit cards or store cards, you may want to consider applying for a credit card that allows balance transfers.

What is a Balance Transfer?

Making a credit card balance transfer means that you transfer your debts with other credit cards and store cards to your new credit card. You simply provide the details of your other credit cards and store cards to your new credit card provider, and the balances will be transferred to your new card.

The Benefits of Balance Transfers

The main benefit of a balance transfer is that it can save you money and therefore allow you to clear your debts in less time. In order to make the most of a balance transfer facility, you will need to look for a card that offers 0% balance transfers. This means that for a specified time, you won’t be paying interest on your transferred balance.

This doesn’t mean that your monthly payments will be cheaper, as you will have to pay at least the minimum monthly repayment set by your card provider. However, it does mean that your money will be going towards paying off your debt, rather than paying interest, so this will mean that you can pay your balance off quicker.

A second benefit of a credit card balance transfer is that, as you can transfer the balances from a number of credit cards and store cards to your new credit card, it can make it easier to keep track of your finances.

Balance Transfers – Things to Look For

Here are some hints and tips on what to look out for when choosing a credit card in order to transfer your balances from other cards:

· Make sure that you choose a card which offers a long 0% balance transfer period. Different providers offer different 0% interest periods on balance transfers, so compare them before applying for your new credit card.

· Check to see what fees you will be charged for transferring any balances to your new card. Most providers will charge a percentage of the transaction amount, so compare charges before choosing a credit card.

· Check to see what the annual percentage rate (APR) is on any card that you’re considering. When you have reached the end of your 0% interest period, you will need to pay the card’s standard APR on this balance, so make sure that it is competitive.

· Make sure that you can afford to pay at least the minimum monthly repayment each month, as if you pay your bill late, your credit card provider may cancel your 0% interest balance transfer arrangement. Check the terms and conditions applicable to any credit card before applying, as breaching them may also result in cancellation of the 0% interest deal.

· Make sure that you know the order in which your card provider will apply payments to your account. Most card providers will use the payments that you make to pay off your transferred balance first, so if you make any new purchases on your card, they could prove to be expensive. If you do intend to use your new card to buy things, look for one that offers a 0% interest on purchases period.

If you are in credit card debt and suffering from high monthly interest charges, zero interest credit cards are an easily accessible solution. Many credit card providers offer 0 balance transfer credit cards to encourage people to transfer their credit card balances. This is a popular and successful marketing technique which you can take advantage of. These credit cards offer an interest free period of usually between three to fifteen months. However, once this period is over you will have to pay normal interest charges. Thus, for the cost of the interest free period, these lenders have purchased a customer. That is, if you play the game their way. You do not, however, have to do this.

There is nothing to stop you playing the credit card transfer game your own way. The goal of your credit card provider is to profit from your indebtedness. Your goal is to keep as much of your own money as possible and if you’re smart, to become debt free and financially strong. You can use 0 balance transfer credit cards to do just that.

The first step to freedom from high credit card costs is to find an interest free offer for credit card balance transfers. Choose a credit card with the lowest balance transfer fees and the longest interest free period. Twelve months or more is best. As you near the end of this twelve month period, start to compare other 0 balance transfer credit cards with low upfront costs and decent introductory periods. Once you decide on the best offer, apply to transfer the balance of your current card to the new one. In this way, you will be able to continue to benefit from a zero interest rate.

This simple idea can save you thousands of dollars in interest charges. However, even though the idea is simple it can be difficult to wade through all the offers in the marketplace and go through the application processes. The easiest and quickest way to implement this financial strategy is to take advantage of an established online credit card transfer service. A professional service such as this will already have done the initial research and selection for you so that you only have to consider a smaller range of the best 0 balance transfer credit cards. These services will also generally provide an online application process to make things even easier.

However, the best of these professional sites will also offer a reminder service so that you don’t forget that your interest free period is coming to an end. An alert will be sent to give you enough time to transfer your balance to another zero interest card. This service will support your decision to continue to move your balance to a new credit card so that you never have to pay interest. There is no doubt that the busyness of life can easily get in the way, causing us to forget our good intentions. A reminder service can give you a prod to act quickly in your own best financial self interest.

Introductory, interest free credit cards offer a user friendly way out of the credit card trap. As long as you remember to transfer your balance to another of the many available 0 balance transfer credit cards before the introductory period expires, you will be able to gain your financial equilibrium easily.

A 0% Balance Transfer Credit Card usually refers to a credit card that offers a new user or new cardholder a 0% interest rate for the first six to twelve months after first using the card. Usually, the 0% interest rate is a “teaser” rate that is used to persuade people to use or avail a certain credit card. This comes after a credit card holder transfers balances from one or more unpaid credit cards to the current card. Then the creditor has to pay for those debts using the new card.

Issuers like banks, generally charge balance transfer fees to reimburse the costs they incurred in handling the transfer of the unpaid debt to the current credit card account.

To take advantage of the 0% interest rate that this type of credit card offers, a cardholder must try to transfer debt balances to his current card, then paying for them as quickly as possible. Issuers of this type of card typically offer 0% interest rates on periodical payments for up to twelve months after first using this credit card.

Things to Take Note Of:

Applicants for balance transfer cards should take note of the following facts regarding this type of credit card:

1. Some card issuers disallow the transfer of debt balances from high interest accounts to this type of card during the introductory 0% interest rate offer period.

2. A handful of issuers of this card charge high balance transfer fees that cost as much as $50.

3. If you incur a late payment for even a single payment period, several issuers automatically charge cardholders with very high penalties. What’s worse, they could immediately revoke the 0% interest rate privilege and change your card to a variable annual percentage rate (APR) card just for one late payment.

4. Issuers may charge the credit card holder very high interest rates right after the introductory offer period expires.

How to be a Responsible Balance Transfer Card Holder

If you want to take advantage of the short-term introductory benefits of a 0% interest balance transfer credit card, take note these simple tips:

1. Do not apply for this card if you are going to transfer small amounts or a zero balance debt for a previous account.

2. Make sure you choose a credit limit that suits your needs and at the same time complements your current financial status. The issuer conducts credit investigations to determine your ability to pay and the credit limit that you can handle.

3. Understand the long-term details of credit. Make sure that you can handle the interest rate and rigidity of the payment scheme after the introductory 0% interest rate period.

4. Quickly pay for the balances during the introductory 0% interest period. If you are going to take advantage of the 0% interest rate, make sure that you can pay for the balances during the introductory period. This is especially needed whenever a credit card holder transfers a balance from a previously high interest card.

5. Do not transfer large balances to your 0% credit card if you cannot pay for them before the end of introductory period. Failure to pay for the balance would result in the cardholder having a much larger amount to pay for compared to the original balance he wanted to eliminate.

Make sure you understand the costs you will have to incur and deal with using your new 0% balance transfer credit card. Read the fine print in the card’s credit terms to make sure you will not get into financial trouble.

College students can start building that all-important credit history with student credit cards. Next to a checking and savings account that offers a good amount of flexibility and low fees, a student credit card is one of the most important tools a young person can have starting out in life.

The fact is that in many cases no credit is worse than bad credit because like so many individuals, lending institutions are wary of the unknown. Even if one is able to secure well-paying, steady employment right out of college, banks will not write car loans or home mortgages without some kind of credit history – and student credit cards are an excellent way to get started.

There are some issues to keep in mind when applying for student credit cards One is the issue of no prior credit history; in order to successfully apply for student credit cards for the first time, it’s often necessary to have a co-signer with a strong credit history. Credit card companies do this in order to protect themselves; should the cardholder default for any reason, the co-signer becomes the party responsible for repaying the balance. For this reason, it’s an excellent idea to compare the terms offered by several different companies.

The other thing to keep in mind is that the interest rates on student credit cards are likely to be high, while the amount of the credit line is unlikely to exceed $1000. This is for the cardholder’s protection as well as the credit card company’s. By establishing a reliable payment record however, it should be possible to get much more favorable terms in a reasonably short period of time (typically a year or two).

In the meantime, used prudently, student credit cards can be valuable tools; many even offer rewards and incentives. The Discover® Student Card is one such instrument; cardholders earn unlimited cash rewards, including up to 20% rebates for online purchases.

The Bank of America Student VISA Platinum Plus Credit Card is one that requires no cosigner. There is no annual fee, and one can access his/her account online. In addition, this student credit card offers protection against fraud and identity theft – a real danger when shopping online if one does not exercise proper caution.

You may find that student credit cards such as these offer “0% Introductory APR.” Keep in mind that these rates are introductory; after the first six months, they can go as high as 16.99%. However, many student credit cards offer an interest-free “grace period” for balances paid in full every month – another incentive for using these cards in a prudent manner.

Those who are eligible for student credit cards are at least 18 years of age and are enrolled in a two-year college or four-year college or university.

Today, credit card is playing important part on every transaction. You can shop for merchandise and pay it with your card. It’s that simple. It is not only for people that already have a job but also for high school and college students. Student credit card have the same features as a traditional one, but they do come with certain strict requirements that other cards do not have it. Most credit card companies will need a co-signer as collateral or a form of insurance before they release a card for the student. This is to be believed as a back up and a peace of mind for the issuer if something goes wrong with the payment.

The student credit card interest rate or APR is usually higher than regular one. This is to minimize the risk for the company. The limit is also ranging from $250 – $800. This is very common because most students have not established any credit history. Even though the limit is very low but it still helps students build a credit. A student credit card can be used as a stepping stone to build credit and establish a good credit history. If you can manage your using of the card then you have a chance to get high credit card rating and this is in turn will allow you to get higher loans in the future.

On the other side, if students spend more money with their card, sooner they will be incapable to pay the bill which will affect their credit rating. If the issuer goes after the co-signer to pay the bill, it will also affect co-signer’s credit rating as well. Therefore, students should always aware about their budget before they start using the card.

To summarize, student credit card is good to have. For high school students or college students, this card is a mean of freedom and at the same time also teaches responsibility. It comes in handy during emergencies, which is a good reason to invest in them. If your son or daughter is in school now, you may consider looking into it for them. It will help them to build a credit score which is good for their life in the future.