Tame Your Credit Card Interest With Transfers

Paying down debt is one of the best steps consumers can take to get through a recession.

What's on your credit card is one of the most important types of debt to rein in. One way to get control over multiple cards with varying balances and interest rates is to transfer your balances to a new card with a lower rate. In fact, many cards advertise balance transfer rates as low as 0% for a set period, which is an appealing alternative to the annual interest rates of 15% or more. 

But as is often the case with credit cards, the devil is in the details. If you are planning on a balance transfer to solve your revolving debt issues, here are a few things to consider. 

Teaser rates don't last: Thanks to the Federal Truth in Lending Act, credit card companies are required to outline the card's fees and rates in a table called the Schumer Box. While the information has to be present in the table, it can be confusing, given the myriad of rates and percentages included in the summary. When you locate the table (often found under the "Pricing and Terms" section of the card's introductory materials), find the section that describes the balance transfer APR (annual percentage rate). There will be a number of rates listed, one of which is the 0% APR (or other low rate) that first caught your eye. That rate is the teaser rate, and it can last for just a few months or more than a year. After that introductory period, your rate will automatically switch to the card's higher regular rate.

Applying for a Credit Card? Must read tips.

The Credit Card company makes money from the interest of your deposit. The Credit card firm also makes money by charging you exorbitant interest rate and the Credit card provider is guaranteed their money because if you don’t pay on time, they take the money out of the bank account you opened with them along with any interest you have accumulated. Why would you deposit and use that cash. Boy, you need not sell your house to own the credit card. Just throw away such offers and build a credible financial base and win a right to own a credit card and not a shady one from one of these rip off offers. Use credit wisely and itelligently. Don't strian your financial situation further. So next time you get such credit card offer 

1. Don't pay money to get a useless piece of list of credit card providers.

2. What is the Credit Card late fee you will be charged?

3. What interest will you pay on outstandings on your credit card?

4. Is there a deposit for getting the Credit card? How much?

Credit Card is credit mechanism. Not a lottery.

If the mailer says you have won a grand prize and hence free credit card, immediatly get cautious. For getting such deals you must deposit money with the bank and lose interest on that. You can then spend the money till on the card till your balance runs out. Is it a credit card? or is it a debit card? Well you got to ask this question yourself. Well, again this is not it. Take this, if you delay paying your bill pay a ransom as a late charge, pay unheard interest rate on due amount etc. And you also get reported to credit beuro so that you never receive a loan again.

Pre-Approved Credit Card Plans, checkout and be safe

Don't get excited if you get a pre-approved mailer from visa or mastercard credit card. Of course, you don’t have to have any credit. The mailer says make you feel that bad credit, bankruptcy all is fine with them and make you wonder whether the company will be next to file bankruptcy if they keep disbursing free cards and dont get paid for the bills. Hang on a sec, lets think. These companies only want your money and that too tons of it, more than a normal company with a normal process would ever want. This company now would want you to send money to receive application and they wont send you the card, they would send you the list of banks you may approach if you want a card. So basically application money down the drain. Build your credit step by step and enjoy your credit card when you deserve one. Good luck!