Credit Card Balance Transfer
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Credit Card Balance Transfer Considerations
Author: Tom Peters
If you are like me you receive in the mail and you see the ads on the internet, offers to transfer your credit card balance to another provider, at a cheaper interest rate. Balance transfers of existing credit card balances from a high rate interest card to a low rate interest card is a very attractive offer. If the right transfer is chosen this can be a very effective and easy way to consolidate debt, if you maintain a financial discipline.
One of the first things you need to do is to look at the terms and conditions. These are often in very small print and on the computer screen a lighter color so they are hard to read. The devil is in the detail. Often this detail will reveal that after the initial interest free period, the standard variable interest rate will be very high, ensure that you check this against your current credit card. Remember the credit card company can raise rates at any time, they are always quick to raise rates and slow to reduce rates.
Credit Card Balance Transfer
Another common terms and condition is that there are a lot of extra expensive fees, transfer fees and late payment penalties. These late payment fees can also turn into a regular higher interest rate than the interest rate that the balance was transferred on.
Often new purchases will also have a very high interest rate, as do all cash advances. The balance transfer normally accrues interest from the day the balance transfer takes effect, which is different to normal purchases where you might have a 20, 25 or 30 day grace period. Always be careful with balance transfers, read the fine print and compare are you any better off if you transfer, than what you are now.
Article Source: http://www.articlesbase.com/credit-articles/credit-card-balance-transfer-considerations-1625193.html
Credit Card Balance Transfer
About the Author
Tom has been writing for many years now. Not only does this author specialize in financial matters, you can also check out his latest web site at http://rachaelrayreview.org/ which reviews and lists the best Rachael Ray Cookware for your kitchen.
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