Around one third of all credit cardholders do not pay off their credit card balances in full each month, which means they are paying interest on the money for their purchases. However, in todays competitive market many credit card companies are offering 0% credit card balance transfers for new customers. This can really help those people that are becoming farther and farther in debt by not paying off their balance.
With a 0% credit card balance transfer offer you can transfer the balance that you have on one card that is charging you 17% to a card that offers 0%. The new card pays off the debt that you have on the old card and then the balance is on your new card at the lower, better rate. Then you will have the time until this introductory feature ends to pay off the debt without incurring any interest fees.
A credit card balance transfer can be great if you can find one that will have the 0% long enough for you to be able to pay off your entire balance. Many of these credit card companies that are now offering the 0% balance transfer give you 3 months, 6 months, 9 months, 12 months, or 15 months to pay off your debt before you begin paying any interest on your balance. You should however, read the fine print of each credit card company to ensure that you will not have any other miscellaneous fees, and if possible, 0% on all new purchases as well.
If you do not believe that you can pay off the entire balance in the allotted time then a card balance can also be transferred to a credit card with competitively lower interest rates. American Express offers a fixed, low APR for credit card balance transfers for the entire life of the balance.
As you begin searching for a credit card balance transfer offer there are a few things you should take into consideration, which include:
- Does the credit card company charges for balance transfers?
- Do you pay off your card balance each month?
- Will you need to charge additional purchases with the balance transfer card?
- Will you pay off the card balance before the intro rate expires?
Some credit card companies may offer 0% credit card balance transfers but they may also charge you fees for the transfer. Most charge between 2 – 3% for the total balance transfer. You should always pay the minimum payment or you can find yourself paying finance charges. Most of the time, new purchases on the new card will not be given the same 0% APR and you will end up paying interest charges, since the money that you pay on the card balance will be put toward the balance transfer and you will be paying interest on the new purchases. Changing credit card companies before the expiration of the 0% or low APR may be the way to go if you still have a large balance left on your credit card.
A good credit score can be an asset when you need it most. But if you don’t regularly monitor your credit status, your credit score can become a liability. Have you checked your credit report lately?
By law you are able to obtain a copy of your credit report free every 12 months from each of the three nationwide credit reporting agencies, Equifax, Experian, and TransUnion. The three companies have formed a central agency so that you can request a copy from all of them at once. Its called Annual Credit Report and can be accessed online.
This free credit report can be a valuable tool in maintaining your lifestyle and can save you money. By monitoring your credit report on a regular basis, you can catch any errors that may have been recorded and see that they are corrected immediately. Also with the increased crime of identity theft, with a vigilant eye on your credit reports, you can catch any funny business early.
There are just a few things you need to do to maintain a good credit score.
-First and foremost, make your payments on time.
-Stick within your budget and manage your debt.
-Do just what you’re doing and monitor your credit report regularly to correct any possible errors.
-Try to avoid any unnecessary inquiries of your credit report, as each request can be marked against your good credit score.
-Reduce your credit card balances if they’re limited out.
-If you don’t have enough credit history, you may consider applying for new credit.
By carefully reviewing your credit report on a regular basis, you can be sure that you maintain a good FICO score. “What is a FICO score?” you say.
The FICO score is the ‘grade’ with which financial institutions use to judge the risk they take when extending you credit. The higher the FICO score, the better. The scores generally range from 499 – 800 plus.
By keeping a close watch on your credit reports, you can help to protect your good credit. Whether it’s a car loan, credit card, or mortgage, your credit score can dictate the interest rate of your new loan. A good credit score can save you money.
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.