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In today's financial market more and much more people are turning to credit card balance transfers rather than the traditional home equity lines that they've been used in the past. During the refinance hay-day throwing a tax deductible credit line on the home to wipe out the charge cards was a no-brainer. Nowadays, shrinking home values and a violent secondary market are causing most banking institutions have to hold these loans instead of selling them. This means the HELOCS of yesterday are just available to those with impeccable credit who have a good amount of equity in their homes. Luckily, interest rates are low and balance transfers really are a pretty good alternative if your credit debt is out of control and require some help. This being said there are some things that you want to consider when transferring credit card balances in one card to another. The golden rule is that if you use a balance transfer card as an avenue to repay balances on your other cards allow this be your sole purpose. Make a budget and timetable to repay the debt where there is a newbie and an ending payment otherwise you might get yourself into deeper debt. Things to consider when transferring credit card balances: Life of Balance Transfer cards - Life of balance charge cards are just what their name suggests, they offer a low rate that pertains to the balances you transfer within a particular time period. What you want to consider is a fixed rate that won't fluctuate over time. Depending on your credit level these might not be available to you, however if they're we highly suggest that you look for these cards out. The "gotcha" with this class associated with cards is that they usually provides you with an extra thousand or two in your limit in hopes that you spend it in a higher interest rate, and most individuals do. Again, we suggest that you utilize balance transfer credit cards for the single reason for transferring higher interest credit card balances to some lower fixed rate. Once the move is completed, we recommend that you shred the transfer card and also the one you transferred from to stay from using them again. Over 75% of individuals that transfer balances use the transfer card and also the old card again and end up owing more income than they did before the move. If the cards do not come with an annual fee keep the accounts open up for emergencies but shred the cards to maintain yourself honest. The Fine Print - If charge card issuers are similar in one area it's most definitely their fees and the small print. It seems like they have costs for everything including one for on-time obligations. Seriously you need to read the small print and weigh the fees that make an application for balance transfers, late payments, grace periods along with other "gotchas" like universal default clauses. Over 80% of individuals that apply for credit cards won't read the fine print from starting to end only to be surprised when their bill arrives within the mail. Most credit card websites offer handy calculators that will help you calculate the best deal considering all the fees. Most credit cards have reduced the actual grace periods for repayment from 30 days to 20 days so that they can earn more fees and interest. If you're like most people, including yours genuinely, you pay your bills at a particular time of the month that usually coincides together with your pay periods. The problem with this really is that the 20 day grace period is in accordance with the due date of last month's charges and it is forever changing. If you pay your bills monthly like I do this will lead you to get late payment fees and may even trip the universal default clause that brings me to my next subject. Universal Default Clauses - A universal default clause is really a nasty little trick that credit credit card providers use to jack-up your rates as well as fees to intolerable heights. If you look towards the top of the fine print on each charge card you will usually see the regular APR and something below it that is through the actual roof. The one below it is the rate you're going to get should you pay late or even though your credit deteriorates. These clauses range from annoying to nasty and most states want to outlaw them but the majority of charge cards still have them. The only card provider that I can think of that does not have this clause across the panel is Capital One. I'm sure you will find others but the clauses differ through issuer to issuer and card in order to card. Read the fine print for each card you are thinking about, see what their rules are which will trigger this clause. Some are mild which apply only if you're habitually late, where others monitor your credit and may jack up your rates and fees in case your credit is deemed riskier than once they issued the card. Introductory & Variable Rates - Watch out for the asterisks. When you see one of these simple next to an interest rate you can bet it will change on you. Most cards will advertise 0% curiosity on balance transfers 12 - 15 several weeks but have cute little asterisks alongside the rate. Find the fine printing; chances are that your sexy 0% rate will morph into a giant wallet munching monster following the intro rate is over. Find out what the adjusted rate is going to be. The "gotcha" here is that many people know their rate will adjust later on but they rationalize the transfer thinking that they'll have the balance paid off for the reason that time frame. Chances they won't and the credit card issuers know this. How else do you believe they can offer 0% interest prices? Variable rates are almost inescapable because 95% of cards have variable rates. The ones that don't have them are hidden deep within most websites and gives very few frills. The reason they are hidden is that they're a little tougher to qualify for and gives lower profit margins to the companies. When searching credit card websites consider an extra minute to go completely to the last page in every category, you may be surprised what you should find. Most credit card websites are arranged most abundant in profitable credit cards on the very first few pages, these are rarely the actual best credit score cards. Reward Cards - If you're using your balance transfer card while you should, the bells and whistles upon reward cards shouldn't concern you. The features cost you more, period. They cost the issuer more plus they pass the cost right back. If you stay true to the reason and transfer your balances to be able to pay them off you should obtain a plain-Jane generic card without the usual frills hat includes most cards. The only frills you need to seek are the life of stability feature, fixed rate and a workable or nonexistent universal default clause. In closing I hope these tips help you to get your very best deal should you choose to use a balance transfer card. This category of credit card is becoming a lot more popular every day due to the actual financial chaos surrounding us today. This is generally the best thing though; this causes the card issuers to generate different cards that offer better deals maintain with their competition. Just remember the actual golden rule, only use balance transfer cards with a specific plan to repay a balance. If you are "robbing Peter to pay Paul" the credit card issuers will usually win in the finish. Remember, Las Vegas wasn't built on winners and neither are large credit card issuers.






Aubrey Clark is a graduate associated with Johnson Wales University and lives in Atlanta Georgia together with his wife and four children. He is definitely an editor and syndicated writer for lendfast. com on subjects ranging from Finding Low Interest Rate Credit Cards in order to Nationwide Mortgage Loan Companies

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