Credit Card Balance Transfers - For Lower Interest Rates, Make the First Move

One of the biggest lessons that I've learned in life is the importance of taking action. When it comes to your finances and getting rid of credit card debt, it is more important than ever to develop a plan and take action as soon as possible.

You may be hoping that your credit card issuers will reach out their hands to help you when you're struggling to overcome debt. Truth be told, I don't see this happening. Most of us have a tendency to wait for things to happen in our favor, but we must learn to become action oriented if we are to become debt free (or achieve just about anything else in life).

For example, you may be interested in lowering your burden by switching to a credit card with a lower interest rate. Depending on your specific situation, this may be a good idea for you to consider. However, don't just wait for credit card companies to call you up or send you an offer in the mail.

Yes, I know that most of us receive offers on a regular basis, and it might just happen that you receive an attractive, helpful offer for a low interest credit card. But why wait to receive such offers? You can take action and contact the credit card companies yourself to try and gain a lower interest rate.

You can try a few different approaches. If you wish to be honest, you can simply discuss your situation with the customer service representatives and ask if a lower interest rate is possible. Depending on your personal ethics, you can make a bluff that you've received an offer for a much lower interest rate which you are considering.

You're not just limited to your current credit card companies. You can also call other companies and talk to their marketing department about any special offers they may have. Depending on their interest rates, you may want to transfer your existing balance to this new credit card.

However, make sure to understand the fine print. The low interest rates may only be temporary, in which case you would have to pay a much higher rate in the near future. You should also be aware of any transaction fees that you might have to pay in order to transfer a balance.

The most important thing, however, is to be proactive and start taking steps to eliminate your credit card debt. I cannot overemphasize the importance of taking action. Make a commitment to learn as much as possible about improving your finances and take it one step at a time.

Article Source: credit card debt reduction

Credit Cards - Never Pay Interest Charges Again!

When looking for a credit card, most people spend all of their time looking for one with the lowest interest rate. Obviously a low interest rate is good. In fact, the lower the rate the better. So why settle for a card with a low rate - why not set your sights a little higher (or, in this case, lower) and look for a card that never charges you a penny of interest regardless of how large a balance you carry on your card? Not possible? Actually it's not only possible, it's not even all that difficult. The trick is that you've got to keep track of a few simple dates and be prepared to take action at the appropriate moment.

Credit card companies want your business. I mean, they really want your business. In fact, they'll do almost anything to get you to sign up for their card - including offering you a zero interest introductory rate. This introductory rate can last anywhere from 6 to 12 billing cycles.

All you have to do is to sign up for a credit card with no interest for 6 to 12 months, transfer your outstanding balances from your high-interest cards to the new zero-interest card, and then keep track of exactly when the new card begins charging interest and switch to another card with a zero interest introductory period just before it does.

If you're nimble you can keep switching cards forever and never have to pay a penny of interest on any of your purchases.

Obviously there are a few things you need to look for when deciding on a zero-interest card to switch to. First, make sure there are no fees for balance transfers. Most cards allow for free balance transfers, but not all do.

Secondly, always, always, always pay your monthly payments on time. If you miss even one payment, or if you are late on even one payment the introductory zero-interest rate on your card goes right out the window and you could find yourself suddenly making interest payments of 24% a year or even higher.

Also, look for cards with no yearly fee and try to find cards with no monthly maintenance fee; a monthly maintenance fee is just a sneaky way of charging you what amounts to interest every month without actually charging you interest.

If you're wondering if this really works, the answer is YES. I do it and many people I know do it as well. Once you get into the swing of it, the process becomes second nature. And the money you save is quite substantial, especially if you normally carry a high balance every month.

The secret is finding a really great credit card website that gives you plenty of choices so you can keep the shell game going forever.

Article Source: Credit Cards At The Best Rates

What You Should Know About Low Interest Credit Cards

Credit card companies have come up with all types of schemes to attract consumers. It's a cutthroat competition so it is very easy to come across a low interest credit card. Having a low interest credit card lets you enjoy a number of benefits. As a precaution, you should read the credit card terms and understand what is being offered to you. Do not sign without knowing what exactly you are signing up for.

Your credit history is the determining factor for the interest rate you can get for your credit card. The better your credit history, the lower the interest rate that will be levied on you. If you have some minor bad history, you can still have a lower interest rate than what you are currently paying. It is worth doing some research about these cards.

Many people all over the world carry a balance on their credit card every month. In such a case, taking a low interest card can save you significant amount. If you intend to pay the balance completely as soon as possible, a low interest card will help you do this faster. Some of the major credit card companies even give you 0% interest benefit if you transfer your credit balance to their low interest card. If you can subscribe this, you can have your credit paid very quickly.

You may be one of those who are able to pay off entire credit before the due date each month. A low interest credit card can benefit you in this case too. You can never be sure that you will be able to clear off your credit every time. If an emergency strikes, you might not be able to pay off your credit on time. So in such a situation, having a low interest credit card could be a great source of help because you can use it for emergency purchases.

If there are advantages to low interest credit cards, there are disadvantages too. Your 0% interest rate may only have an initial term of six months. After this period, the interest rate rises and sometimes this rise can be substantial. If you can pay off your credit card during the initial period, a low interest credit card is a good thing to have. However, if you are not able to clear off your credit by the end of the initial term, your monthly payments will become hefty. This will offset the benefits that you have gained during the initial time frame. Although it is mandatory for the issuer companies to notify you when your 0% interest rate is about the end, it is better to be vigilant. You alone would be accountable for your credit card debt.

The first thing you should do when your credit card bill arrives is to check for errors. If no errors are found, pay off the entire amount if possible. This can greatly benefit you since you can save big time on interest rates. One thing you should avoid doing is pay just the minimum amount, which his usually 3% of your balance. The interest will keep on accumulating on the remaining amount and gradually will become a big amount. That amount you could have utilized to pay for your car or a vacation. Use a low interest credit card to save hundreds of dollars each year.

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Do You Pay Interest on an Interest Free Credit Card?

There is no such thing as paying no interest on a credit card. The companies who issue credit cards would not stay in business in this were the case. However, you can obtain an interest free credit card, which means you will not pay any interest for a designated period of time. This varies from company to company. Always compare what credit card lenders have to offer before you dive in and apply for an interest free credit card with them.

Some interest free credit card companies offer introductory offers where no interest is charged for three months, six months or in some cases, up to 18 months. This is often based on how much is charged to the card. If you go over a specified amount (your limit) then interest could very well be charged sooner. This is a way to encourage new business for the company. While the interest free period might sound very attractive, make sure you find out what the standard interest rate will be after the interest free period is over with.

The very best way to avoid having to pay interest is to be smart with your purchases and to pay your bills on time. As well, never charge beyond the amount you can afford to pay by the time your bill is due and payable. All credit cards do have a grace period or an interest free period. In most cases this falls somewhere between 40 to 60 days after you have made a purchase or purchases. This is especially beneficial if you plan to charge something expensive such as a trip, a computer or a flat screen plasma television.

If you already have a credit card and find an interest free credit card that has better rates, then most companies will allow you the opportunity to transfer your balance from one to the other in order to take advantage of the zero percent introductory rate. Make sure that you choose a credit card company that will not charge you much of a fee (or preferably no fee at all) for making the transfer.

As a freelance writer, C.R. specializes in consumer and business finance.

It is recommended that you don't just stumble around the internet looking for good credit card deals you can compare and find the right credit card that best fits your financial situation.

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