With so many credit cards to choose from, here are a few things to keep in mind.
1) Is this a fixed rate or an introductory rate?
2) If it is an introductory rate, when will it go up and by how much?
3) Is there an annual fee?
4) What fees or penalties might apply for not paying on time?
5) Is there a balance transfer fee?
6) If checks are included with an offer, is there a fee for using them (usually there is)
7) If you have transferred a balance at a fixed rate, make sure any purchases would be at that rate as well before buying anything with the card. Credit card companies always apply payments to higher rate balances first.
8) Could not paying another credit card or other debt payment on time affect your rates on this card?*
* The interest rates on some cards can actually be affected by how you are handling the rest of your debt. You don't want one of your lower interest rate cards to suddenly jump when you pay some other card late. Finding out this information will probably require calling the company issuing the card.
Wednesday, October 10, 2007
Sunday, September 30, 2007
Credit Card Balance Transfer Information You Must Know
Balance transfers from higher interest to lower interest credit cards is a very effective tool for reducing credit card debt. However, you must be sure to read all the fine print in the credit card agreement to see that you are going to truly benefit from the transfer. There are several pitfalls to look out for.
I am currently paying off my second $25,000 worth of credit card debt. I am now down to about $15,000. Both this time and the last time, I have paid very little in interest by transferring to lower interest rate cards, usually 0%, for periods of 12-18 months. There are always time limits on 0% deals, but I have been able to lock in fixed rates as low as 2.9% until the balance is paid off on some of my debt.
First you must comb through the offers you get in the mail and use the internet to do some comparison shopping on which credit card companies are offering the best deals. From my experience, one credit card company is no better than any other. They all have special offers at various times, so just go with the one offering the lowest rate for the longest time taking into account what the rate will go up to once the lower rate period ends. Hopefully, you will be able to transfer the balance again if a better offer comes along. Just make sure you look out for balance transfer fees and late payment penalties.
If there is no balance transfer fee, this will usually be stated on the first page as it is a big marketing plus for the credit card company. If it is not stated clearly that there is no fee than there usually is one. Read the terms and conditions section where they must disclose the balance transfer fee. A common fee that I have encountered is 3% of each balance transfer with a minimum and maximum listed, such as ($5 minimum / $75 maximum per transfer). If there is no maximum listed, watch out, because if the balance you are transferring is big enough, you could be looking at hundreds of dollars just from the transfer fee.
Most credit card companies will penalize you for making late payments. It could be a fee or you could forfeit the lower rate you had locked in. In such a case the rate will usually shoot up to at least the regular purchase rate on the card if not even higher.
If the rate you are transferring to is not going to be fixed until the balance is paid off, definitely take note of what the rate will shoot up to once the lower rate period expires. If you have a fairly good credit history, you will probably be able to take advantage of another balance transfer credit card offer before the rate on your current card jumps. If you do this though, make sure you plan at least a month ahead to have time for the balance on your old card to transfer to your new one.
One frustrating situation that I have run into with some credit card companies on new credit card offers is that they want you to tell them how much your transfer balance is before they tell you what your limit will be on the new card. Don't panic if this happens. The worst case scenario is that some of your balance might not transfer, but hopefully you will at least get most of your balance onto a lower interest credit card. Then you will just have to keep looking for another card to transfer your remaining balance to.
Finally, once you transfer a balance to a new credit card, set that card aside until the balance is paid off or you transfer the balance to another card. Don't use it for purchases. Another major pitfall that is easy to fall for is when the credit card company you transferred a balance to offers you something special down the road to entice you to charge purchases on the card. This would be a big mistake, since credit card companies always apply payments against higher interest rate balances first, which also means your minimum payment would jump up.
I am currently paying off my second $25,000 worth of credit card debt. I am now down to about $15,000. Both this time and the last time, I have paid very little in interest by transferring to lower interest rate cards, usually 0%, for periods of 12-18 months. There are always time limits on 0% deals, but I have been able to lock in fixed rates as low as 2.9% until the balance is paid off on some of my debt.
First you must comb through the offers you get in the mail and use the internet to do some comparison shopping on which credit card companies are offering the best deals. From my experience, one credit card company is no better than any other. They all have special offers at various times, so just go with the one offering the lowest rate for the longest time taking into account what the rate will go up to once the lower rate period ends. Hopefully, you will be able to transfer the balance again if a better offer comes along. Just make sure you look out for balance transfer fees and late payment penalties.
If there is no balance transfer fee, this will usually be stated on the first page as it is a big marketing plus for the credit card company. If it is not stated clearly that there is no fee than there usually is one. Read the terms and conditions section where they must disclose the balance transfer fee. A common fee that I have encountered is 3% of each balance transfer with a minimum and maximum listed, such as ($5 minimum / $75 maximum per transfer). If there is no maximum listed, watch out, because if the balance you are transferring is big enough, you could be looking at hundreds of dollars just from the transfer fee.
Most credit card companies will penalize you for making late payments. It could be a fee or you could forfeit the lower rate you had locked in. In such a case the rate will usually shoot up to at least the regular purchase rate on the card if not even higher.
If the rate you are transferring to is not going to be fixed until the balance is paid off, definitely take note of what the rate will shoot up to once the lower rate period expires. If you have a fairly good credit history, you will probably be able to take advantage of another balance transfer credit card offer before the rate on your current card jumps. If you do this though, make sure you plan at least a month ahead to have time for the balance on your old card to transfer to your new one.
One frustrating situation that I have run into with some credit card companies on new credit card offers is that they want you to tell them how much your transfer balance is before they tell you what your limit will be on the new card. Don't panic if this happens. The worst case scenario is that some of your balance might not transfer, but hopefully you will at least get most of your balance onto a lower interest credit card. Then you will just have to keep looking for another card to transfer your remaining balance to.
Finally, once you transfer a balance to a new credit card, set that card aside until the balance is paid off or you transfer the balance to another card. Don't use it for purchases. Another major pitfall that is easy to fall for is when the credit card company you transferred a balance to offers you something special down the road to entice you to charge purchases on the card. This would be a big mistake, since credit card companies always apply payments against higher interest rate balances first, which also means your minimum payment would jump up.
Alternative Student Loans For Bad Credit Can Make The Difference For You
There are ways to borrow money, whoever you are and whatever your circumstances. A poor credit rating nowadays means for little, except you might have to pay more.
There are a number of places to source your alternative student loans for bad credit. More and more students are finding difficulty as the number of students increases. As poorer students join the throng of swelling numbers, some are likely to suffer from worse credit than the average student historically.
The problem is that many new college entrants have poor credit histories, just because they are young and haven't entered the market fully. Using just their home address might even worsen their right to a loan, because their parents might have a poor history themselves.
In many instances students entering college has no credit history due to their age and their parents are applying for the loan. If the parents have a bad credit history the student may be refused entry to school due to a lack of funding sources. Clearly, in those cases, their parents would be less likely to be able to fund their child themselves.
In these cases, students will need to find out sources for alternative student loans for bad credit, and will end up paying higher interest rates. In many cases such loans have different and more challenging repayment schedules, often starting with immediate effect, rather than a more typical deferred period.
One option would be to take the more expensive alternative student loans for bad credit and then reschedule the loan at the end of the course with a student loan consolidator.
Much more favorable terms will then be perfectly possible, though a student with an alternative student loans for bad credit may still bear the penalty of higher interest rates.
You see, student loans were generally recognized as an unsecured debt in the past, which meant that the usual lenders were rather careful about lending. Nowadays though, with, government backing there are many more sources of alternative student loans for bad credit than ever before.
A student loan is considered a financial contract and when a borrower is found in default, the lender then has the option of garnishing wages and the tax refunds from federal refunds and from most states.
The previous high rate of student loan default has led to tighter credit controls on these loans and created a larger and more sustainable market for alternative student loans for bad credit.
If the borrower begins to pay off the loan early and makes regular payments, it may be possible to seek an alternative funding source to rewrite the loan to pay off the higher interest rate note and have lower payments for the life of the agreement.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Article Source: http://EzineArticles.com/?expert=Martin_Haworth
There are a number of places to source your alternative student loans for bad credit. More and more students are finding difficulty as the number of students increases. As poorer students join the throng of swelling numbers, some are likely to suffer from worse credit than the average student historically.
The problem is that many new college entrants have poor credit histories, just because they are young and haven't entered the market fully. Using just their home address might even worsen their right to a loan, because their parents might have a poor history themselves.
In many instances students entering college has no credit history due to their age and their parents are applying for the loan. If the parents have a bad credit history the student may be refused entry to school due to a lack of funding sources. Clearly, in those cases, their parents would be less likely to be able to fund their child themselves.
In these cases, students will need to find out sources for alternative student loans for bad credit, and will end up paying higher interest rates. In many cases such loans have different and more challenging repayment schedules, often starting with immediate effect, rather than a more typical deferred period.
One option would be to take the more expensive alternative student loans for bad credit and then reschedule the loan at the end of the course with a student loan consolidator.
Much more favorable terms will then be perfectly possible, though a student with an alternative student loans for bad credit may still bear the penalty of higher interest rates.
You see, student loans were generally recognized as an unsecured debt in the past, which meant that the usual lenders were rather careful about lending. Nowadays though, with, government backing there are many more sources of alternative student loans for bad credit than ever before.
A student loan is considered a financial contract and when a borrower is found in default, the lender then has the option of garnishing wages and the tax refunds from federal refunds and from most states.
The previous high rate of student loan default has led to tighter credit controls on these loans and created a larger and more sustainable market for alternative student loans for bad credit.
If the borrower begins to pay off the loan early and makes regular payments, it may be possible to seek an alternative funding source to rewrite the loan to pay off the higher interest rate note and have lower payments for the life of the agreement.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Article Source: http://EzineArticles.com/?expert=Martin_Haworth
Quick and Easy Ways To Improve Your FICO Score
It used to be that "humans" decided your credit worthiness. For example, you knew your banker by name and your handshake was all the collateral you needed. Those days are long gone. Now a set of numbers - your FICO score - decides your credit worthiness and your banker may be thousands of miles away.
Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.
Your FICO credit score controls your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.
Preserving your FICO score, and improving it, is not difficult, but it may take time. Despite the books, courses and consultants offering to help you improve your credit score, only 3 basic steps come into play. Here are the 3 steps everyone must use to earn, preserve and improve their score - based on three credit examples.
Step One: Obtain a Credit History
There are many reasons you may have no credit history. Maybe you're just starting out, maybe you pay cash for everything and have never needed a loan. Anyway, if you have no credit history, your FICO score is likely to be low.
The easiest way to raise your score is to get a small loan, and pay it off on time. In general, installment loans carry more credibility than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than getting a credit card.
Another way to earn a better credit history is to take $1000 and open a 6-month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here's the trick. Take the $1000 loan, and open another 6-month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.
Now what you have is 3 loans. Pay the minimum payment for 6 months. In the last month, cash out your CDs and pay the loans off. You now have a credit history, and did not go into long-term debt to get it.
Step Two: Preserve Your Good Credit History
Keep a stable source of income, pay your bills on time and avoid high credit card debt.
Here's more ideas to keep your FICO score as high as possible. First, don't close your old accounts. The credit available verses credit used determines a major part of your score. Closing old accounts can lower this part of your score, because doing this narrows your ratio. Second, paying off your credit cards every month is good money management, but you may be able to improve in this area.
Here's the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here's what happens - your credit card company reports your credit information monthly to FICO. If they report it before you pay off your card, it looks like you carry a balance on your credit card every month.
You may find your FICO score improves if you pay off your credit card at a different time of the month.
Step Three: Repair Your Poor Credit History
For whatever reason, if you have a poor credit history, there are actions you can take to improve your score. Some of them take time, and you will probably do better by talking to a credit counselor. Because they can help repair your credit history and help eliminate what caused that poor credit history in the first place.
The most heavily weighted part of your score is your payment history. The first action to take in starting to repair your credit history is to pay your bills on time. The mortgage is the most important, followed by installment loans, and finally credit cards.
How you use credit is the next largest portion of you FICO score. The fastest way to improve this is to pay down your installment loans and credit cards.
One final point to look for is errors in your credit report. Get a copy of your credit report from all three primary agencies, and look at all the entries. You can find the agencies here: experian.com, equifax.com, and transunion.com.
If there are any errors, start having them removed. Call your creditors - sometimes they will remove negative information. If not, you have a right to have an explanation added to your credit report.
Your FICO score is an important part of your financial life, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial planner.
Roy Primm has written hundreds of articles helping thousands to live better on less money. Get free ebook 199 Ways To Live Better On Less Money at ...Shopping Help
Article Source: http://EzineArticles.com/?expert=Roy_Primm
Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.
Your FICO credit score controls your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.
Preserving your FICO score, and improving it, is not difficult, but it may take time. Despite the books, courses and consultants offering to help you improve your credit score, only 3 basic steps come into play. Here are the 3 steps everyone must use to earn, preserve and improve their score - based on three credit examples.
Step One: Obtain a Credit History
There are many reasons you may have no credit history. Maybe you're just starting out, maybe you pay cash for everything and have never needed a loan. Anyway, if you have no credit history, your FICO score is likely to be low.
The easiest way to raise your score is to get a small loan, and pay it off on time. In general, installment loans carry more credibility than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than getting a credit card.
Another way to earn a better credit history is to take $1000 and open a 6-month CD account at a financial institution. Now, get an installment loan for $1000, using that CD as collateral. Now, here's the trick. Take the $1000 loan, and open another 6-month CD account at another institution. Take another loan for the $1000 at the second institution. Do this one more time.
Now what you have is 3 loans. Pay the minimum payment for 6 months. In the last month, cash out your CDs and pay the loans off. You now have a credit history, and did not go into long-term debt to get it.
Step Two: Preserve Your Good Credit History
Keep a stable source of income, pay your bills on time and avoid high credit card debt.
Here's more ideas to keep your FICO score as high as possible. First, don't close your old accounts. The credit available verses credit used determines a major part of your score. Closing old accounts can lower this part of your score, because doing this narrows your ratio. Second, paying off your credit cards every month is good money management, but you may be able to improve in this area.
Here's the scenario: you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here's what happens - your credit card company reports your credit information monthly to FICO. If they report it before you pay off your card, it looks like you carry a balance on your credit card every month.
You may find your FICO score improves if you pay off your credit card at a different time of the month.
Step Three: Repair Your Poor Credit History
For whatever reason, if you have a poor credit history, there are actions you can take to improve your score. Some of them take time, and you will probably do better by talking to a credit counselor. Because they can help repair your credit history and help eliminate what caused that poor credit history in the first place.
The most heavily weighted part of your score is your payment history. The first action to take in starting to repair your credit history is to pay your bills on time. The mortgage is the most important, followed by installment loans, and finally credit cards.
How you use credit is the next largest portion of you FICO score. The fastest way to improve this is to pay down your installment loans and credit cards.
One final point to look for is errors in your credit report. Get a copy of your credit report from all three primary agencies, and look at all the entries. You can find the agencies here: experian.com, equifax.com, and transunion.com.
If there are any errors, start having them removed. Call your creditors - sometimes they will remove negative information. If not, you have a right to have an explanation added to your credit report.
Your FICO score is an important part of your financial life, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial planner.
Roy Primm has written hundreds of articles helping thousands to live better on less money. Get free ebook 199 Ways To Live Better On Less Money at ...Shopping Help
Article Source: http://EzineArticles.com/?expert=Roy_Primm
The Best Balance Transfer Credit Cards Can Simplify Your Life
The best balance transfer credit cards can serve many purposes, including making life much simpler. Case in point - credit card consolidation. Instead of paying several credit card bills every month you can consolidate all of your debt onto a single account.
There's no question doing this will instantly simplify your finances. no more sending payments to American Express, Discover Card, Bank of America, Chase and whoever else. By consolidating what you owe into one charge card account you pay one bill and that is that.
However, I must state that if you are considering doing this you must keep several important facts in mind. First off, you must know what the interest rate is. If it is a zero percent interest balance transfer then you can bet it is only an introductory offer and it won't last forever.
Typically 0% APR balance transfer offers will last from 6 - 12 months. At the end of the introductory period the current interest rate, whatever it may be, will kick in and you will be charged against the balance that remains on your account. Zero percent offers are great but they don't last forever.
I know I don't need to remind you but I'll say it anyway, banks and credit card companies are in business to make a profit. Many issuers will use credit card balance transfers as a way to draw in new customers. And you can bet that when the introductory period ends they are hoping that you still carry a balance that they can charge interest on.
If you are actively seeking balance transfer credit cards to reduce your current debt, then good for you. It is a wonderful way to do it. Do your math and figure out how much you will need to pay each month to pay off what you owe prior to the intro period expiring.
But hey, even if you have substantial debt and can't pay it all back before the favorable interest rates expire and the long term rates kick in, pay down as much as you can. You will have saved a great deal of money taking advantage of the 0% APR and will be that much closer to being rid of your debt.
You must also be sure to find out if there are any balance transfer fees and annual fees associated with the offer. Even some of the best balance transfer credit cards will have fees. Please carefully read the terms and conditions that are spelled out on the credit card application.
Morgan Hamilton, is a financial adviser that specializes in the debt and credit markets. For more insight into finding the Best Balance Transfer Credit Cards please feel free to visit www.Find-Cards-Now.com.
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
There's no question doing this will instantly simplify your finances. no more sending payments to American Express, Discover Card, Bank of America, Chase and whoever else. By consolidating what you owe into one charge card account you pay one bill and that is that.
However, I must state that if you are considering doing this you must keep several important facts in mind. First off, you must know what the interest rate is. If it is a zero percent interest balance transfer then you can bet it is only an introductory offer and it won't last forever.
Typically 0% APR balance transfer offers will last from 6 - 12 months. At the end of the introductory period the current interest rate, whatever it may be, will kick in and you will be charged against the balance that remains on your account. Zero percent offers are great but they don't last forever.
I know I don't need to remind you but I'll say it anyway, banks and credit card companies are in business to make a profit. Many issuers will use credit card balance transfers as a way to draw in new customers. And you can bet that when the introductory period ends they are hoping that you still carry a balance that they can charge interest on.
If you are actively seeking balance transfer credit cards to reduce your current debt, then good for you. It is a wonderful way to do it. Do your math and figure out how much you will need to pay each month to pay off what you owe prior to the intro period expiring.
But hey, even if you have substantial debt and can't pay it all back before the favorable interest rates expire and the long term rates kick in, pay down as much as you can. You will have saved a great deal of money taking advantage of the 0% APR and will be that much closer to being rid of your debt.
You must also be sure to find out if there are any balance transfer fees and annual fees associated with the offer. Even some of the best balance transfer credit cards will have fees. Please carefully read the terms and conditions that are spelled out on the credit card application.
Morgan Hamilton, is a financial adviser that specializes in the debt and credit markets. For more insight into finding the Best Balance Transfer Credit Cards please feel free to visit www.Find-Cards-Now.com.
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
Finding the Best Balance Transfer Credit Card
Finding the best balance transfer credit card has become much easier thanks to the magic of the Internet. Could you imagine having to go through those stacks of credit offers that choke our mailboxes on a daily basis in order to compare credit cards? What a nightmare.
In my case I began to take note that I had several credit cards that I was paying monthly interest on. Now carrying a balance on a charge card isn't the wisest thing to do, I know, but sometimes there are more pressing matters pulling at our finances.
In any event, I decided it was time to do something about it. It was my goal to consolidate the debt on all my cards onto a single credit card. In order to this I knew I had to find the best balance transfer credit card offer that suited my financial needs.
Fortunately for me it turned out to be a much easier task than I had originally anticipated. I hit the World Wide Web and did a quick search for what I needed and was pleasantly surprised to see that there were several sites in which I was able to compare various offers.
All of the major banks and issuers were represented including American Express, Bank of America, Discover Card, Citibank and Chase. There were plenty of cards to choose from as well. In my case, because I was looking to transfer balances and consolidate debt, I went for the zero percent credit cards.
My goal is to pay down all of my existing debt over the next 12 months. The card I picked features 0% APR on balance transfers. This is an introductory rate that will last for 12 months. At which time I will pay whatever the interest rate at that time may be on the balance that I owe.
Everyone's situation and needs are different. That is why doing a thorough comparison is so important. And making those comparisons is really easy to on the Internet. That is where I found the latest and best balance transfer credit card offers on the market.
I hesitate to say exactly what that rate will be because all cards are different and I don't want to unintentionally mislead anyone. It is easy enough to see what your rates will be. Just take the time and make the effort to fully read the terms and conditions on the application.
I, Morgan Hamilton, am a financial adviser and am more than happy to share my insights and experiences regarding my search for the Best Balance Transfer Credit Card including assistance finding the latest Balance Transfer Credit Card Offers Get the information you are seeking now by visiting www.Find-Cards-Now.com.
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
In my case I began to take note that I had several credit cards that I was paying monthly interest on. Now carrying a balance on a charge card isn't the wisest thing to do, I know, but sometimes there are more pressing matters pulling at our finances.
In any event, I decided it was time to do something about it. It was my goal to consolidate the debt on all my cards onto a single credit card. In order to this I knew I had to find the best balance transfer credit card offer that suited my financial needs.
Fortunately for me it turned out to be a much easier task than I had originally anticipated. I hit the World Wide Web and did a quick search for what I needed and was pleasantly surprised to see that there were several sites in which I was able to compare various offers.
All of the major banks and issuers were represented including American Express, Bank of America, Discover Card, Citibank and Chase. There were plenty of cards to choose from as well. In my case, because I was looking to transfer balances and consolidate debt, I went for the zero percent credit cards.
My goal is to pay down all of my existing debt over the next 12 months. The card I picked features 0% APR on balance transfers. This is an introductory rate that will last for 12 months. At which time I will pay whatever the interest rate at that time may be on the balance that I owe.
Everyone's situation and needs are different. That is why doing a thorough comparison is so important. And making those comparisons is really easy to on the Internet. That is where I found the latest and best balance transfer credit card offers on the market.
I hesitate to say exactly what that rate will be because all cards are different and I don't want to unintentionally mislead anyone. It is easy enough to see what your rates will be. Just take the time and make the effort to fully read the terms and conditions on the application.
I, Morgan Hamilton, am a financial adviser and am more than happy to share my insights and experiences regarding my search for the Best Balance Transfer Credit Card including assistance finding the latest Balance Transfer Credit Card Offers Get the information you are seeking now by visiting www.Find-Cards-Now.com.
Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton
Subscribe to:
Posts (Atom)