Tips when you Transfer a Credit Card Balance

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Rewards Credit Cards
Major credit card companies have recognized the advantages of offering rewards credit cards. These credit card companies have becomes competitive with the help of reward programs. There is constant competition for business among these credit card companies. They hope to convince customers to choose their card over another by offering special interest rates, lower fees and reward programs.

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How to get a Bad Credit Credit Card
Checkbooks and even paying with cash is becoming less frequent as more and more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards is rising. Online shopping has helped fuel the need for a credit card. Unfortunately people with bad credit are normally not approved for a credit card. It is not hopeless, there are avenues for those... Read credit cards article



Tips when you Transfer a Credit Card Balance
Are you staring at that attractive advertisement for switching credit card companies by transferring your balance from one card to another? While many of these offers are truly great deals, balance transfers and card-switching is not something to jump into, eager as you may be. You need to do your homework first: Do enough research and investigating in order to determine whether it in fact is worth it or a good idea to make the transfer.

First, find out if it is in fact worth it. Generally speaking, these attractive advertisements and super credit card deals advertise very low introductory rates if you transfer your current balance from an existing credit card onto this new one. You can stumble upon these offers anywhere - online, in the mail, on a flyer or via a telephone call from credit card company salespersons - and you need to determine how great these deals really are, or if you'll just end up paying much more in fees and interest in the long run.

Read the fine print. Read everything. Read it through several times so that you make sure you understand what it is saying. It may appear to be a bunch of financial jargon that you might not think is very important, but the truth is, this information is valuable and critical to your decision in whether or not you make the big switch. Call the credit card company and ask any questions you might have. If the deal is solid and they want to make a sale, generally they should be able to help you out in any way.

What do you need to find out about the deal? Here is an example. Let's say that the advertised introductory rate is 6% (a low rate) on credit card B if you transfer your balance from credit card A, where you currently rack up an APR of 18% (a standard rate). You come across another offer, showcasing credit card C with an introductory rate of 9%. At first glance you may think, "Well, let's go with credit card B - it's the obvious choice here." However, after reading the fine print, you discover credit card B's special rate only last six months, and afterward the APR is 20%, whereas credit card C's higher rate lasts for a year and the interest rate after that is 18%, the same as yours on credit card A.

In other words, you have to factor in a lot of variables when making the decision to switch your balance from one credit card to another. Besides comparing the introductory rates being offered, the length of the offer and what the regular interest rate is, you'll also need to take into account balance transfer fees, annual fees, late fees and other fees, as well as whether the teaser rate applies to balance transfers only or also purchases, among other considerations.

Something else to keep in mind is that you may not actually qualify for the special rate being offered, depending on your credit history and credit rating. Before you make the big plunge, make sure you know exactly what you, yourself, will be getting. There may also be other conditions. For example, some credit card companies may penalize you for one late payment and take you off the introductory rate onto their regular rate, which may be higher than your current card's rate.

However, many credit cards with these introductory rates offer great deals for people interested in switching credit cards and transferring their balance over and can be more than worth it. The important thing is to do your research, read the fine print and ask questions to determine which credit card and deal is the right one for you.

Once you've selected the right credit card offer, the next step is to fill out the balance transfer application form completely and accurately. Next, make the minimum payment on your original credit card while you wait for the balance transfer to go through. When it has gone through, the new company should send you a notice, after which you'll need to verify the transfer with your old company so they can send you a zero-balanced billing statement. Finally, cancel your old card since you don't need it anymore - it will also save you some temptation.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for a credit card online.

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Credit Card Annual Fees

The annual fee, or membership fee, is an amount charge card companies levy for the right to use or carry their card. This fee is payable whether you actually use the card during the year or not. Annual fees range from an average low of $25 to as much as $100 or more.

Annual fees were first popularized by prestige charge cards such as American Express and Diner's Club. These annual charges were called Membership Fees. The charge card companies justified these fees because card holders were required to pay their balances in full every month and the companies earned no interest from the balances due.

The annual fee made the leap from club cards to the ordinary bank card in 1980 after the U.S. Government imposed a temporary moratorium on the solicitation of new customers for bank card companies. This was done in the hopes of cutting runaway inflation. The card issuers saw this as a chance to earn more money from their existing customer base who suddenly found themselves without any options thanks to the hastily passed government initiative.

After the moratorium was lifted, card users left the fee in place with a justification that annual fees kept interest rates low because it provided a way for the banks to offset losses from fraud and the rising number of personal bankruptcy claims. There was little outcry from the public and business went on as usual.

The first sign of trouble on the horizon came in 1990 when long-distance giant AT&T (American Telephone and Telegraph) entered the credit card industry with the hopes of offsetting their declining long distance revenues. Looking to raise the visibility of their new card in an already crowded marketplace, AT&T made a big advertising splash with their "No Annual Fee Credit Card!"

The response from consumers was overwhelming and the panic spread quickly through competing banks that were seeing their long-time credit card customers defect to upstart AT&T. That one incident, which bankers still call "The Big Scare", marked the beginning of the end of the annual fee for most people.

Today, American Express still charges their membership fees although some of their interest-bearing products come fee-free. Most banks issue fee-free credit cards to their customers with high credit scores and save the fee-based offers for lower scoring customers and customers with scores so low that they can only qualify for secured cards.

Provided by Creditor Web. Creditor Web empowers consumers to compare and apply for a credit card online.




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Tips when you Transfer a Credit Card Balance
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