Switching credit cards?
November 23, 2011
Every day millions of credit card offers are sent out in the mail to prospective cardholders who are on the lookout for a more appealing credit account. read more…
Benefits of traveling with your MasterCard!
August 30, 2011
When traveling, often you must sit down and dedicate time to remembering all the essential things you will need to take. One of the most important things that people forget to ensure is if their funds are in tact! read more…
Understanding Deferred Credit Card Billing
April 2, 2011
One of the most common retail marketing tactics used to solicit new customers is the “buy now, pay later” concept, which entices clients with the prospect of being able to spend money without creating a new short-term financial responsibility. Deferred credit card billing is the credit card industry’s version of the same idea, allowing the cardholder to create a debt that will not be placed against their account balance until a predefined date in the future. read more…
A Step-By-Step Guide for Transferring Credit Card Balances
February 21, 2011
Many people choose to use balance transfer credit cards to consolidate their debt, by transferring the account balance of one credit card to another with lower interest rates and better terms. By transferring an account balance to another card with lower rates and fees it is possible to minimize the amount interest incurred, as well as the total spent on late fees and similar penalties each year. Transferring credit card balances also makes it easier to centralize repayments and simplifies the process of getting out of debt quickly. read more…
How Many Balance Transfer Credit Cards are Required?
January 17, 2011
It is usually a good sign when credit card users seek a balance transfer credit card to deleverage, as it indicates the credit card user is on the path to a credit card debt free life. A balance transfer is a great tool which allows credit card users to transfer a debt from one credit card to another in search of a lower interest rate. Many consumers require more than one credit card to successfully complete a balance transfer. In this article readers will discover why some consumers seek more than one credit card for a balance transfer and whether or not they will also need multiple cards to do the same.
Credit limit
Many credit card users may need multiple balance transfer credit cards due to the fact that the credit limit on one account is not sufficient enough for all of the debt to be transferred. If credit card holders have their debt spread out on multiple credit cards, they may seek to periodically transfer their debt. Tackling a debt periodically is a good strategy, which may help to prevent credit card users from failing to make the entire repayments on multiple cards concurrently, which will result in the standard interest rate being reapplied.
Length of the offer
The low interest rate (or sometimes the zero interest rate) which credit card users receive on balance transfers is only for a limited period. Given the fact that consumers have limited disposable incomes and can only make a restricted payment each month, they may not be able to fully repay the balance within the period. Therefore credit card users are advised to transfer the remaining balance to another credit card in the hope of settling the balance with additional months of little to no interest on the debt.
Standard interest rate
Eventually each and every balance transfer credit card’s low rate will revert to the standard interest rate. Credit card holders who made concurrent balance transfers can use this opportunity to transfer the balance from the higher rate card to the lower rate card, therefore paying 15.99% on the entire debt, for example, instead of paying that rate on only half of the debt with a higher rate on the remaining balance.
Credit card users who attempt to periodically tackle their debt can then transfer the remaining balance to the new balance transfer credit card that they anticipate on establishing. This will then give them more time to pay a low interest rate.
Conventional wisdom tells us that consumers should not apply for too many credit cards as it raises red flags to lenders. If, however, consumers construct a plan which will save them money and is perfectly within the stipulations stated in the terms of conditions, cardholders are encouraged to process with the plan.