Finance Tips

Zero percent balance transfer credit cards are a successful marketing strategy of credit card providers which provide enormous benefits to customers. The inducement of zero interest charges, even if only for a limited period, is highly attractive to credit card borrowers. Whether people are suffering serious financial disadvantage as a result of credit card debt or simply paying more than they have to, balance transfers to low rate cards just make sense. If interest payments are robbing your family of a decent quality of life and financial security, then transferring your credit card balance to an introductory card can give you much needed respite and an opportunity to get back on your feet.

There is no doubt that juggling high monthly credit card payments on multiple cards is a recipe for financial stress and even disaster. The opportunity to alleviate that stress and preventing financial derailment offered by zero percent balance transfer credit cards is worth taking advantage of. There is so much competition between credit card providers for balance transfers that you will have a lot of different cards to choose from.

The most beneficial zero percent balance transfer credit cards are those with an introductory period of at least twelve months, low or no balance transfer fees, and competitive ongoing fees and charges. Any respite from high interest charges is better than none, however, the longer that period can be, the better off you will be. As well as looking for the longest zero interest term possible, you should also consider the cost of transferring your balance, ongoing fees and charges and the potential costs if penalties come into play. Take the time to read the terms and conditions of any credit card you are interested in applying for in order to avoid costly mistakes.

A selection of zero percent balance transfer credit cards can be found online by simply conducting an internet search. The quickest and easiest way to compare introductory offers is to take advantage of a credit card website that has already done the initial ground work for you. These sites offer a range of alternatives that you can consider and provide all the relevant information to help you decide. Generally speaking, they also provide the opportunity to apply online via a web form. This is the most convenient way to organize a balance transfer as you can do it when it suits you and not a lending institution.

It is important to make the most of zero percent balance transfer credit cards by using as much of the interest savings as possible to reduce your credit card balance. The introductory period will come to an end and you will once again have to pay normal interest payments unless you choose to transfer your balance to another introductory offer card. Therefore, it is essential that you make the most of your interest free period. Use as much of your interest savings as possible to reduce your credit card balance while removing the financial stress of your previous situation. If you do this, you will move from debt to stability and find yourself in a much more empowering position.

Face it — not all students have the advantage of carrying daddy’s plastic. Credit cards for most students are dangerous. It is important to understand and know how to use credit to your advantage so as not to be caught off guard by skyscraper fees and interest rates at the end of the month. Here are some frequently asked questions regarding college student credit:

1. How many students have credit cards?

Over 80 percent of college students have at least one credit card. More then 50 percent of freshmen carry plastic, and by sophomore year, over 90 percent of the the sophomore population have credit cards. Graduate students are no different, most of them carry as many as six cards. Credit card balance is directly proportional to level of education, with graduate students having the biggest credit card balance due to education expenses among the whole student body population.

2. Why are there so many credit card companies issuing cards for students?

Credit card companies know that when students can not pay their balances, they have the parents save them. They also offer attractive interest rates and benefits to college students because college is the time when most people get their first credit cards. Most people stick to their first credit card even after graduation. So, college students are great customers!

3. Are credit cards bad for college students?

Credit cards should not altogether be avoided by college students because they can help them rent a car and get a good car insurance policy, as well as provide emergency funds. Establishing a good credit history is important and needed after college. It is wise to get a credit card while studying and make sure that the credit card is paid on time. College students should also opt for one or two low-limit cards. Using such will be easier for the student to stay within his or her budget and afford to pay the bills on time.

4. What happens when a student cannot afford to pay on time?

Usually credit card companies will increase the interest rates, as well as charge a penalty if a student falls behind on his or her payments. This will leave the student with a bad credit history, and will be seen in the report for as long as seven years. This will affect the student’s ability to acquire future credit such as when he intends to buy a house or a car. Some students opt to enroll as part time students to cut up their work load and free up some time so they can work and pay for their balance. Some stop studying altogether and choose to work full-time to pay for their loans faster.

5. How can students manage finances so as not to fall heavily into debt?

Students should keep track of their money by mapping out a budget and listing all sources of income as well as every purchase and expense he makes. This way, the student will know exactly how much he has spent and how much he still has left.

6. How can you tell if a credit card company is giving you a good deal?

Before signing any contract or application, the terms, interest rates and hidden charges should be understood by the student. Cards that make students pay annual fees on top of the interest rates should be avoided. Students should also look for cards which offer interest-free grace periods provided that they are able to pay during a certain period of time.

7. What is the role of the parents when it comes to their children’s student credit?

Parents should encourage their children to spend money wisely and teach them to handle debt before they start college as much as possible. Some credit card companies offer to issue an extension card for the child of their client. There is even a new plan wherein students are given credit cards and parents can refill it with money, so the students will be able to make cash withdrawals of charges depending on the amount of money their card has. Parents should make their children realize that as much as possible, credit cards should only be used for emergencies – that divine faux fur coat slashed 70% off its price is not considered an emergency.

8. Is taking a cash advance a good idea?

Cash advances should be avoided. Not only will you pay interest from the time of withdrawal, cash advances will leave you with high paying interest rates with no grace period to speak of. There is often also a cash advance fee. Before you know it, you will be in a really big financial crisis should you start making cash advances a habit.

9. Is it worth it to use credit cards in paying for small amounts so that the points will accumulate and I will be entitled to nicer gifts towards the end of the month?

Sure, there are credit card companies that offer gifts depending on the number of points the client has accumulated, but paying using plastic for just about anything should be avoided because you will still have to pay interest rates. It is not worth it to get a nicer gift in the end but accumulate fees and pay interest for little things like a can of Diet Mountain Dew or a pizza. Using a credit card for everyday expenses is a bad habit to form.

10. What are penalty policies?

Should a client fall behind on his payment, credit card companies usually charge sky-high penalty rates and cancel their low-rate offers, so it is important to ask about this before signing up. It could also trigger universal default penalties which could increase interest rates on other cards!

Students should know how to manage finances and should be aware of the consequences should they miss payments of their credit cards before they go to college and apply for credit. It is the key to a financially stress-free life in the future.

I am often asked a seemingly simple question: what is the best balance transfer credit card? Unfortunately, the answer can be quite complicated. However, the short answer to this question is simple: apply for a 0% APR balance transfer credit card that charges no balance transfer fees.

Over the past three years, the number of credit cards offering no fee 0% interest balance transfers has declined substantially. Today, there are rarely more than two or three of these offers on the market at one time. Additionally, there used to be credit cards that offered no fee balance transfers with a 0% interest rate on purchases and balance transfers. Today, all such offers have disappeared.

Consequently, I have developed a few quick rules to help people determine if a 0% no fees balance transfer is better than a credit card that offers 0% on both purchases and balance transfers.

Rule #1:

If you will be carrying a credit card balance from month to month on any credit card, a no fee balance transfer may not be the best option. Why? The standard fee for most 0% balance transfer offers is 3% with a $75 maximum. If, for example, you carry a balance of only $1000 on a credit card with a 14% interest rate during the year, you will rack up more than $150 in interest on your new purchases. Thus, if you know you will use your credit card for more than balance transfers, avoid the no fee offers and stick with a credit card that offers a 0% APR on everything.

Rule #2:

Read the fine print. While I can’t name names here, a number of companies have raised the maximum balance transfer fees to $250. While this only effects those of you transferring more than $2500, these absurd fees can be easily avoided.

Rule #3:

Plan ahead. 0% APR balance transfers don’t last forever, so it is always wise to choose a balance transfer credit card that offers a low long term APR as well as a 0% intro rate. Of course, you could theoretically transfer your balance from card to card when the 0% APR expires. However, just in case you can’t, a low APR acts as an insurance policy.

The choice between a no fee balance transfer and a 0% APR credit card for purchases and balance transfers is clearly not as simple as it seems. However, if you take your spending habits into consideration, finding balance transfer deal that will save you the most money does not have to be a daunting task.

Ever since zero percent introductory annual percentage rate (intro APR) credit cards were introduced to the American market several years ago, they’ve been very popular. All types of consumers have been taking advantage of 0% offers. Most consumers use 0% deals to save money by avoiding interest charges on their credit card debt, while other money-savvy consumers use 0% offers to make money by playing the 0% credit card arbitrage game (also known as “stoozing.”) Many 0% credit card offers come with a catch: you have to pay a fee for transferring a balance. There are, however, a few select credit card products out there where you don’t have to pay a fee for the first or initial balance transfer.

Feeless, 0% intro APR balance transfer deals — perhaps the most sought-after 0% deals on the Internet — are a dying breed. Dying, but not dead. The pool of banks that offer feeless 0% deals has been shrinking. Why? Because the banks and credit card companies know that by eliminating the balance transfer transaction fee, a balance transfer “surfer” can transfer a credit card balance to a card, sit out the interest-free period, then transfer the balance out to a new 0% deal — thus denying the bank any opportunity to make money off the surfer. The balance transfer transaction fee gives a bank the opportunity to get at least something out of the deal.

The Discover More family of credit cards, offered by Discover Financial Services (DFS), has been exceedingly popular for transferring credit card balances. Why? Because, heretofore, with any Discover More card, you could transfer a credit card balance and pay no interest on the transferred funds for 12 months, with no balance transfer transaction fee. But that’s not all: with Discover More, you could (and still can) get a 0% rate on new credit card purchases for 12 months to boot. Its no wonder that the Discover More family of credit cards has been a top-ranked collection of credit cards at many top-rated websites.

But DFS recently made a change to the terms and conditions associated with the Discover More family of credit cards: you now have to pay a fee for transferring a balance; the minimum transfer fee is $10. The Discover More group of cards still offers great value, with a 0% intro APR rate on both balance transfers and new purchases for one year, but the nascent balance transfer transaction fee may turn off some folks out there in the market for a hot, 0% credit card deal.

OK, now for the good news: Bank of America, Washington Mutual (Wamu) and Pulaski Bank still offer consumer credit cards where you can transfer a balance at zero percent for 6 or 12 months (depending on the card) and pay no balance transfer fee. Furthermore, Capital One has business credit cards that provide an option to transfer balances without assessing a balance transfer transaction fee.

If you plan on hunting (or continuing your hunt) for an attractive 0% credit card deal after reading this article, remember two things:
In your search for “no fee balance transfer” 0% deals, you may find articles, blog posts or other website content with claims that feeless 0% deals no longer exist. Don’t buy it. Feeless 0% balance transfer offers can still be found today — even with certain business credit cards — if you know where to look. Credit card deals are constantly evolving, so if you’re planning on signing up for a specific 0% offer that you’ve had your eye on for a while, try not to drag your heels. The sexy, feeless balance transfer offer you find today may be gone tomorrow. Thankfully, the selection of “no fee” 0% deals is still quite healthy, so you don’t have to panic if the offer you wanted disappears.

A 0% interest credit card balance transfer can go a long way in alleviating financial stress. I know that with a lot of Americans the feeling of being overwhelmed can be quite stifling. If you happen to carry a high amount of credit card debt you may feel as though you will never get it completely paid off.

Compounding this problem is the fact that many credit card issuers will raise the Interest rates on people carrying substantial debt because they are considered to be a greater credit risk. Sounds cold doesn’t it? They just keep piling it in.

If this is your present situation then you can at least take some solace in the fact that you are not alone. More and more Americans find themselves deeper and deeper in debt. There are many reasons for this and really no reason to go into that here. That is an exhaustive subject unto its own.

A viable solution can be found in 0% interest credit card balance transfers. They are becoming an increasingly popular way to consolidate and manage credit card debt. And credit card issuers including Bank of America, American Express, Discover Card and Chase are eager to issue them.

These are great promotional instruments for the banks and credit card companies. What they are actually hoping for are to, of course, gain new customers. But ultimately they know that many of these new customers will carry the debt that they transferred beyond the introductory period.

They have this down to a science and know full well that the majority of people are going to do just that. And the credit card company rakes in huge profits from the interest payments. But I’m here to say that it doesn’t have to be that way.

Take advantage of 0% interest balance transfer credit cards by setting up an aggressive payment schedule. Most introductory rates last between 6-12 months. Do some quick math and see how much you would need to pay back each month to pay off the debt before the introductory rate expires.

And take heart. Even if you can’t afford to pay it off in full you most certainly can take advantage of the zero percent interest and pay off a substantial portion of it. And now you are well on your way to being free of credit debt and those nasty interest rates.