Zeroing In On 0% Balance Transfer Credit Cards

November 10th, 2010 - 
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Have you lost count of the number of credit cards you hold? Is your doormat covered each morning in envelopes from companies you have lost track of?

Then you need to look at putting all your credit card debts in one place. If you can transfer your debt to one credit card offering a 0% rate of interest for an introductory period, then even better.

Rest assured that if this sounds familiar, you are not alone. Anyone with a half decent credit history receives numerous invitations to become what is often called a ‘rate tart’ – transferring balances between cards to take advantage of lower rates of interest.

This can be a tempting prospect, especially when the introductory rates are 0% for a limited time period. But there is often more to these 0% deals than first meets the eye.

Get your debts in order with a 0% balance transfer credit card

It is tempting to run up debts on different credit cards. Having a wallet or purse full of credit cards can make you feel wealthy. But beware – the more credit cards and store cards you collect the harder it is to keep track of them.

Monitoring the range of interest rates, minimum payments required and payment dates can eat into your valuable spare time. If you miss payments, the penalty fees are up to 12 a time. The solution is to transfer balances on the cards to one account, minimising the interest rate and administration.

Why pay interest on your debts when you can get if for free

Transferring the balances on your credit and store cards to one account helps you manage your debts more easily. And if you find the interest rate you pay, commonly known as your annualised percentage rate (APR), is rising, then just transfer your balance to another card.

So how do I choose a card?

Without a doubt, paying 0% interest is a lot better than paying the high interest rates charged on some cards, which can sometimes be as high as 29.9%.

The variety of interest rates on credit cards can be staggering. The introductory 0% rate is often offered for between six to 12 months on balance transfers, and sometimes it is just on any new purchases you make with the card.

Sometimes it is even on both!. While you might pay zero interest on the balance transfer, one pitfall to look out for is paying a high interest rate on any new purchases that you might make with your new card. It is always worth shopping around.

Moving cards around sounds too good to be true

In many ways, it is. If you do it too often then you can pop up as a high risk borrower when companies check out your credit history. You also have to take account of the length of the 0% interest rate period, and the interest rate that applies afterwards.

If you fail to pay off your debt, you could be stung by a hefty interest rate when the deal expires.

When is a 0% balance transfer not a free balance transfer rate

Many companies are imposing switching fees now to defend themselves against rate tarts.

You may have to pay a balance transfer fee of up to 3% to your new card provider in order to switch to a cheaper card. If you’re heavily in debt, therefore, it may make sense to consider credit cards that offer low interest rates ‘for life’

Transferring your credit card balance is a solution, not a cure

Putting all your credit card debt on one card is not a long term solution. If you cannot clear your balance each month then you should plan to be debt-free as soon as possible, whether in six months, one year or 10. Balance transfer cards can only give you a breathing space. Your debt still has to be repaid at some stage.

Five things to do before you consolidate credit cards

* Compare the rate of interest you are paying on your credit cards with those available elsewhere in the market

* Double-check whether the 0% interest rate applies to transfer balances, new purchases on the card, or even both

* Look at the rates of interest payable after the 0% period ends and compare charges for late payment, minimum balances payable, etc with those you face with your current credit cards.

* Check what penalties you will pay to your existing credit card lenders to transfer

* Plan how to pay off all your debt over as short a period as possible

* Stick to your budget and don’t be tempted to get into more debt!

What Next?

As we compare all credit card providers you can find the best 0% balance transfer credit cards by look at our best buy tables here:
http://www.moneyexpert.com/Search/Introductory-Balance-Transfer-Credit-Cards.aspx

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Low Interest or 0% APR Credit Cards Take Your

August 20th, 2010 - 
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Low Interest or 0% APR Credit Cards Take Your Pick

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While many credit cards offer rates hovering between 20% and 24%, some of their competitors offer far lower interest rates, including introductory offers of zero percent interest and ongoing rates below 10%. These rates, obviously, make it much simpler to transfer and pay off balances quickly. Low interest credit cards are in high demand currently and credit card providers have provided a wide variety of low interest and 0% APR offers to keep their place within the steep competition in the credit card market. You could even find some retailers offering 0% APR credit cards, often including purchase rebates and/or discounts. Some credit card providers even offer the 0% APR for up to 15 months. Utilizing a low interest credit card offers an excellent opportunity when making large consumer purchases as well.

Because the market for consumers with excellent credit is so competitive, low interest credit cards are often available with no sign up or annual membership fees. Many times, these fees will keep the cream of the crop credit customers from applying for their cards. If your credit is unblemished, you can take your pick off offers and you should never have to pay a fee to acquire a low interest credit card or 0% APR credit card ever. The fees are only for those with poor credit, who are a significant risk for nonpayment. Shop around until you find a credit card company that is willing to compete for your business by eliminating fees.

The obvious benefit of a low interest credit card is that you will spend a lot less money over time on interest and fees. One thing to watch is the length of the introductory period. Many cards offer low or zero percent interest for several months, and then the interest rate jumps directly up to 20%. Make sure you read the fine print of any credit card offer before you sign up. The more information you have about your credit card upfront, the fewer unpleasant surprises you will face down the road.

One of the most popular ways to save money with 0% APR credit cards is to transfer a balance from a higher interest loan to a new credit card account. Sometimes, the introductory credit card rates are even better than auto loan rates, so there are some who would transfer their remaining car loan debts onto a new credit card and save on interests, knowing they can pay off the balance of the car before the introductory period expires.

Be aware that cash advances may come with their own fees, and with their own correspondingly higher interest rates. There may be separate interest rates for balance transfers, new purchases, and cash advances. While one way low interest credit card companies make money is from the percentage they gain from retailers and merchants, they also make a significant amount of money from people who do not take the time to read all of the specific terms and conditions that go along with their new low interest credit cards. Again, read the fine print before signing up!

Properly researching the card offer in advance will definitely save you a lot of headaches in the future. Do not be one of the many victims of credit card debt; instead, use your low interest credit card to your financial advantage. The key is to find and utilize the available information. The more information you can gather, the better decision you would make. It would be a shame to rejoice over a newly gained low interest or 0% APR credit card, just to open up your bill after the first month of purchases to find an unpleasant surprise. Low interest credit cards could be a real financial lifesaver, but they could easily become a trap for the unaware. Stay ahead of the game, and know what you are getting into before you apply.

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Low APR Credit Cards or 0 APR Introductory Which

August 18th, 2010 - 
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Low APR Credit Cards or 0 APR Introductory Which is Better?

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Comparing low APR credit cards to all the 0 APR Credit Cards can be a long and troublesome chore and you may still have problems deciding which one to choose from. When you see all of the various incentive programs, rewards, and, of course, the 0 APR feature you may think you should jump in and get that card before the offer expires. But are the benefits really worth the price you will have to pay after the introductory offer expires or are low APR credit cards instead a better choice?

First, look at the incentive programs offered by the various companies. If you do not travel all the time, then one with rewards of air miles is one you can ignore, and so on and so forth. If you are just trying to decide on a regular credit card without all the free incentives that you can earn and you just desire to learn if low APR credit cards or 0 APR Credit Cards are better, then you can now compare these two types of offers.

So ask yourself these questions:
-Do you wish to have a credit card to purchase something expensive that you cannot afford without putting it on credit?
-How long will the 0 APR last?
-After the introductory period ends, how will the APR change?
-Are there membership fees, annual fees, etc?

If you really need to buy something expensive then the 0% APR can look very appetizing, however if you will not be able to pay off your purchase by the end of the introductory special, you may learn that you will be paying more in the long run with higher interest rates. If you buy something expensive with a low APR credit card, of course you will have to pay interest, but the APR will not rise drastically after the introductory special. This can make a big difference if you do not pay off the debt within the timeframe of the introductory offer only to be left with a much, much higher APR to pay off. The low APR credit cards have the advantage of a sustainable APR and may even save you more money over time.

Remember, the introductory special will not last forever, most credit cards companies have introductory APR offers that last from 3 months to as long as 15 months. Then you will go to a higher APR. Therefore, low APR credit cards might, in fact, be a better solution for some consumers.

The best way to decide is to calculate the big purchase that you wish to make, see how much balance you will have left on your card when the special APR is gone and then see if it is still lower than what you will pay with low ongoing low APR credit cards.

Most importantly, regarding any credit card offer, you need to learn to ask questions and read the fine print. Are there any other fees that apply with low APR credit cards? It is always best to choose a credit with lower fees, lower interest rates and of course one that will fit your needs. Low APR credit cards do not change once the introductory time period is over which is a very big plus.

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How To Select A 0% APR Interest Credit Card

August 4th, 2010 - 
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When you are looking for a credit card, you probably already know that you cannot beat a 0% APR interest credit card. After all, what can be better than paying no interest? Of course, this only applies to the introductory offer, but it can sure beat the interest levels you may already be paying on another credit card. Getting the perfect 0% APR interest credit card, however, will not come as easily as that. Here are some other things that you want to look for to make your credit card an even better deal.

0% APR Interest May Apply To More Than One Thing

When you look at the ads for credit cards and you see 0% APR interest credit cards, it may apply to more than one thing. Generally, it applies to the overall interest rate on the credit card. This means that there is no interest charged on a balance during the introductory period. Of course, there will be late fees if you do not make the minimum payment on time.

The other thing it can apply to is the balance transfer option – if it has one. This option on a 0% APR interest credit card means that you can make transfers of outstanding balances from other cards onto this card and pay 0% APR interest. The time frame, however, is what you need to notice, since it may be different than the general introductory offer. Also, check to see if there is a balance transfer fee or not. Some cards can charge up to 4% for this service.

Rewards Available

Just about any kind of reward may be possible with a 0% APR interest credit card. So, if you are looking for air miles, a student card, a business credit card, or any other kind of reward – it can be found somewhere. Rewards means that you can get anywhere from one to six points for every dollar that you charge to the card.

These points accumulate and you can get either rebates in cash amounts, or discounts toward future purchases. Many cards will give you more points toward the purpose of the card (gas card, air miles card, etc.), but many will also give you one to three points for every purchase you make at the grocery store, the pharmacy, and the gas station.

Compare Card Offers

Before you sign-up for the 0% APR interest credit card, you will want to shop around some and see which one may be the best offer for you. There are many offers out there – in the mailbox and online, but not all of them are what you really want. Be sure to look at the various fees, and try to get one that has as few fees as possible. If you have good credit, this will allow you to get a good card and better rates of interest.

Remember to pay for your purchases each month in full and on time. This way you are sure to be able to enjoy the rewards without having fees and charges eat away at your benefits.

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Credit Cards: Low APR vs 0% APR

June 11th, 2010 - 
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Mano y mano, which one is better do you think a credit card with low, ongoing APR or one that offers 0% APR as an intro rate?

There are so many types of credit cards that offer all sorts of promotions and rewards that its definitely hard for a consumer to pinpoint which one would best suit their wants, needs and present financial situation. If, however, youve already managed to reduce your choices to just two and the battles simply between the low ongoing APR credit card and the 0% APR intro rate credit card then here are several tips to help you determine which one is the best credit card for you.

Are You Planning To Buy Anything Expensive Yes, the words zero percent can certainly be dazzling to the eye but is it something you really need? If youre planning to buy something very much expensive and thats beyond your budget then yes, it might be better if you go for a 0% APR intro rate credit card just as long as youre sure youll be able to pay off the full amount before the introductory period is over. Because if you cant and you dont, then whats the use of having 0% APR in the first place?

How Long Does The Introductory Period Last Generally, for credit cards offering 0% APR intro rates, the introductory period usually lasts from ninety days to fifteen months.

If youre going to purchase something expensive but you dont think you can pay it off before the introductory offer expires then its time to bring out your calculator once more. Compute how much your balance would be after the introductory period and see if its still lower than what youll pay with a low ongoing APR.

What Would The APR Be After The Introductory Period Going back to the previous situation, lets just say that you dont think youll be able to pay off the full amount in time. If the new APR is higher than what other low ongoing APR credit cards are offering then maybe, having a 0% APR intro rate credit card isnt the right credit card for your needs.

Are There Any Other Fees To Pay Whether its a 0% APR intro rate credit card or a credit card with a low, ongoing APR, dont forget to ask if there are other fees to pay. Naturally, its better to stick with the credit card with lower fees.

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Are 0% Apr Credit Cards A Magic Debt Solution?

May 21st, 2010 - 
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0% APR credit cards are becoming extremely common in the world today, thanks to a growing problem with credit card debt and a growing awareness on the part of banks and credit card companies that people want to find a way out of their financial trouble. And 0 interest credit cards at first seem like an ideal way out. Imagine, no additional finance charges accumulating while paying down your existing balances… It’s almost too good to be true! And it is almost like magic–in the sense that magic is often an illusion.

This isn’t to imply that the credit card companies are being deceptive when offering 0% APR credit cards, because they aren’t. Their exact pricing policies are right there on the application pages to any 0% APR credit card, though many people just see the big zero and coast on through the application. But before making any financial agreement, especially an agreement to enter into what amounts to a borrower/lender agreement with a bank or corporation, it pays to stop and take a closer look at exactly what you’re agreeing to.

First of all, there’s the well-established fact that 0% APR is always an introductory rate, lasting anywhere from six to twelve months. Since the major way a credit card company makes money is through interest rates, it wouldn’t make much sense for the company to do anything else. At some point, they will have to charge you interest, even on a 0% APR credit card, which is no problem, as long as you know how much interest you’re getting, right?

But it’s still important to look deeper. Many credit card companies charge extremely high interest rates–18% and up–on even 0 interest credit cards, once the introductory period has expired. Often, there are variable interest rates to justify this: a fairly low rate (maybe 11% to 14%) for cardholders with the best credit rating, a medium rate (17% to 19%) for cardholders with still okay credit, and a standard rate (as high, in many cases, as 23%) for cardholders with average credit. Still higher is the default rate, which you enter if the credit card company decides, for whatever reason, that you’ve been making too many late payments or that you’ve become a bad credit risk. At this point, your interest rate shoots up to as many as twenty-four percentage points above the prime rate (8% as of June, 2006), leading to a default rate of a massive 32%.

So imagine this scenario. You’ve gotten into some difficulty with credit balances and you’re looking for a way to stabilize your finances before paying everything off. Say you’ve got $1,000 in your existing balances across several cards. You apply for a 0% APR card with a balance transfer option and consolidate all of your debt on the existing card (assuming there’s no fee for balance transfers.) So now you have a 0 interest credit card with twelve months to pay it off. For whatever reason, your expected financial windfalls don’t come through, or required purchases offset your balance payments and your balance remains constant at $1,000 after a year. Because you’ve got average credit, your APR starts at 22%, adding $220 to your balances the first month, and more thereafter. You miss some payments, bringing your APR up to almost 33%. At this point, a full third of your balances are being added on to your debts every month, and you may start looking around for still more 0% APR credit cards for salvation

With some sound financial prudence and a determination to pay off your balances within the introductory period, 0% APR credit cards can be valuable resource for getting out of debt. But make sure, when you’re trying to get out of debt, that you know what agreement you’re getting into first.

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5 Things You Should Know About 0 APR Credit Card

April 25th, 2010 - 
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5 Things You Should Know About 0 APR Credit Card Offers

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If you have received one of these offers in the mail, you know how tempting they can be. They claim that you will pay no interest on any purchases or balance transfers in the first period of owning your card. But there are some things about these offers you need to know before you sign on the dotted line and let them pull your credit report

1.The 0 APR offer is for a limited time.

Most credit card companies that offer the 0 percent interest rate deal only offer it for a limited time. This means that you will pay 0 APR for six months, nine months, or up to a year. You need to check the fine print for this information and be careful to notice it when the time is up.

2.The 0 APR offer might not apply to everything you put on the card.

Many cards offer 0 APR on all balance transfers and any purchases made during the introductory 0 percent interest period. But some only offer the 0 APR on balance transfers, and you pay a very high interest rate on any purchases.

3.The 0 APR offer might be null and void if you are not on time with your payment.

Most of these credit card offers are contingent on your being an exemplary member. This means that you have to pay your minimum payment on time every month during the introductory period or else you automatically lose your nice 0 APR and move up to a rate that usually ranges from nineteen to twenty-one percent interest.

4.The 0 APR offer might carry a ridiculously high interest rate after the introductory period is over.

Again, the rate of interest for these cards after the 0 APR is over usually runs from nineteen to twenty-one percent.

5.The 0 APR credit card will not repair your credit.

Remember that consolidating your cards or transferring your loan balance will help you pay off the balance without interest, but it will not remove the damage already done to your credit.

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5 Pros of Owning a 0 APR Credit Card

April 19th, 2010 - 
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When you get the offer in the mail for a 0 APR credit card, you may be tempted to throw it out, thinking that it is too good to be true. But before you toss it in the circular file, take a good look at it. There are some distinct advantages to owning one of these 0 percent interest cards that could help you in ways you dont know yet.

1. Transfer high interest credit card balances.
If you have a credit card that you use often but cant seem to pay off, you can transfer the balance of this card to your new 0 APR card. If you are paying twenty percent interest on another card and have stopped using it because all you can afford to pay each month is the minimum balance, this is a great option for you. You can not only pay off your other balance, but you can also get your purchasing power back.

2. Consolidate all credit card debt to one card.
For people with several credit cards that are maxed out, consolidating them all onto one 0 APR card is the perfect way to pay down the debt quickly. Instead of your monthly payment going to the interest alone, you will be able to pay on the principle for the entire 0 APR introductory period.

3. Transfer high interest rate loan balances.
If you have a car loan that is at an exorbitant interest rate, this is your chance to pay off the loan with no interest. Pay it off at the bank with the 0 APR credit card and then make your interest free payments to the card to pay off this balance.

4. Make big ticket purchases with no interest financing.
Planning to buy some furniture or an appliance? Want to buy some plane tickets to Europe? Use your 0 APR credit card to finance the purchase of these items at 0 percent interest.

5. Improve your credit.
By paying your bill on time each month and paying off balances from other cards or loans, you improve your credit score and better your chances for getting future credit offers.

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5 Cons of Owning a 0 APR Credit Card

April 14th, 2010 - 
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If you have received an offer recently for a 0 APR credit card, you may have been very tempted to send in the form signed and ready to go. You may have seen the words 0 percent interest and jumped at the chance to shop for six months with impunity. You may even have thought that this was the answer to all your credit card or bank loan debt, allowing you to consolidate your bills and pay one low price with no interest. And all of these things may be true. However, there are some serious consequences that you need to know about before you blindly start spending with your new card.

1. Limited introductory period – Credit card companies who offer 0 APR cards cannot offer you this deal for very long or else they would not make any money off of you. So most deals last for six months, nine months, or even up to a year. This means that you will only pay 0 percent interest for this introductory period and no longer.

2. High interest rate – Very often, after the introductory period is over, the interest rate charged for use of your new credit card will be higher than the average rate. Usually, it is anywhere from nineteen to twenty-one percent interest, and perhaps a higher rate on cash advances and other transactions.

3. Penalty for late payments – If you pay your bill late or forget to pay it altogether anytime during the introductory period, you interest rate will immediately go up to a penalty rate. This could be as high as twenty to twenty-four percent on your entire balance.

4. Limited application of 0 APR – Some cards offer the 0 percent interest on all purchases made in the introductory period as well as on all balance transfers during this time. However, read the fine print because some only offer the 0 APR on balance transfers, and they charge a high rate on purchases.

5. Tricky conversion period – When it comes time to move from 0 APR to your regular interest rate, you may be charged interest on any unpaid balances from purchases during the introductory period.

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0% Interest Credit Cards – Truth or Fiction?

March 9th, 2010 - 
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If you are looking for a new credit card then obviously 0% interest credit cards hold a lot of appeal for you. Anything at 0% interest nowadays grabs everyone’s attention, for that matter! But as far as these 0% interest credit card offers go, there is a lot of subtle dodging that credit card companies and bank card issuers engage in to ensure you catch the bait.

So just go ahead and admit it. You are hooked. The 0% APR credit cards ad that you just saw in the brochure attached in the morning newspaper has piqued your interest. But seriously … are these 0% interest credit cards for real?

The truth is they are and they are not. There are cards that live up to the promise of a 0% APR credit card, but the truth is that this 0% interest does not last long. It might just be an initial gimmick to get you to subscribe to the card offer and once youre a cardholder, you have the 0% APR for just a limited time (3 months, 6 months, or if youre very lucky 12 months) before they start charging you a higher rate of interest. The credit card game is truly an interesting one to watch, but not if you are the suffering player. Read on to know what you can do to make sure you are not the sufferer.

Understanding 0% APR Credit Cards

Yes, 0% APR credit cards do, in fact, hold a lot of enticement. But here is what you must do when you find a 0% APR card that has gotten your attention. Pay attention to the following:

1) How long the no-interest period will last?
2) Can you transfer other balances at the 0% rate?
3) What will the APR be after the introductory period ends?

When you are done assessing these factors, you can properly compare all of the interest credit card options available.

The Luxuries of Owning a 0% APR Credit Card

If youve already accumulated a huge debt on your previous credit cards, theres good news for you. A 0% APR credit card can benefit consumers bad credit histories in a big way, if (and that’s a big if) they can get approved for the card offer itself. That being said, a 0% APR credit offer allows cardholders to drastically cut down the interest being incurred on existing debt while it can also help consolidate debts on other outstanding high APR card balances. There are typically balance transfer fees associated with this type of consolidation, but if your credit is sufficient enough, you might be able to avoid fees altogether.

Pitfalls of 0 Interest Credit Cards

1) Most 0% interest credit cards offer 0% interest or no interest only for a limited amount of time, which varies between 6 to 12 months.

2) If youre thinking of transferring balances from high interest credit cards, some of these cards might not even allow you to do so during the introductory 0% offer period.

3) Some 0% interest credit cards might also charge very high balance transfer fees.

4) Some of these cards also carry very high penalties for late payments and
automatically switch you to a much higher variable APR after incurring even a single late payment.

5) Some 0% APR credit cards charge a very high interest rate after the introductory (read honeymoon) period.

Yes, the picture is definitely not all rosy, even though you can most definitely save money on interest charges by using 0% interest credit cards judiciously. If cardholders fail to pay off their card balances prior to the introductory offer expiration, if they fail to make payments on time, or generally disregard their credit responsibilities, these credit cards can end up costing consumers significantly more than most will anticipate.

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