Tuesday, March 4, 2008

How to Save Money With a Rewards Credit Card Balance Transfer

How to Save Money With a Rewards Credit Card Balance Transfer
Would you like to know how a credit card balance transfer
can save you hundreds of dollars from your credit card
bills? Do you currently have trouble keeping up with your
credit card balances? If yes, then a balance transfer may
just be what you need.

Getting a Balance Transfer Credit Card

What is a Balance Transfer credit card and how is it
different from standard credit cards in the market? If you
try to shop around for credit cards, you'll notice that
some credit cards offer 0% APR as part of their
introductory offer. The 0% interest rate will usually apply
on purchases but if you take a look closely at your
choices, you'll find credit cards that offer 0% rate on
balance transfers. If you're lucky, you can even find a
credit card that offers 0% APR for both purchases and
balance transfers.

Why should you take advantage of 0% balance transfer credit
cards? Carrying over your balances with each billing cycle
increases your debt due to additional interest fees. With
balance transfer credit card, you can focus on paying your
original charges without the interest. Do the math, and
you'll realize how much you can save from the interest
rates alone on your existing balances.

Finding the Right Balance Transfer Credit Card

Does this mean that all balance transfer credit cards are
right for you? Take note that different credit card issuers
also provide a variety of terms and conditions. Naturally,
you'll want to go with a company that will give you the
best deals.

For instance, how long will the 0% introductory period
last? Never forget that the zero interest offer is just a
temporary option. Some companies offer as little as three
months while others offer up to a year or more. Ideally,
enjoying at least 12 months of 0% interest offer should
give you enough time to repay your balances completely.

How much is the interest rate after the introductory
period? Will the interest rate still be reasonable when the
introductory offer ends or will it soar high? It's best to
choose a card that will still give you a reasonably low
interest even after the 0% APR expires.

How much is the interest on purchases? If the 0% APR is
limited to balance transfers alone, how much will the
interest be on your charges? If the interest on purchases
will be expensive, you may want to consider using this
particular card for balance transfers only.

Another thing to keep in mind is how much are the annual
fee? Some balance transfer credit cards may have very
expensive annual fees. If you have to pay such a large
amount each year, will it still enable you to save your
money? There are balance transfer cards that have no annual
fee so you'll want to take your time looking for the right
card to fit your needs.


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Ann Wilson is the head writer of Credit Card Rewards -
Travel Reward Credit Card Site. This resource provides
consumers with valuable reviews and information on the best
rewards credit card programs. Visit the site at
http://www.rewardcreditcardsite.com/

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