Hidden Charges

Offering interest rates. The zero or low interest rate charged on the balance. Any transfers of loans and overdrafts. On some cards can be transferred from existing loans and overdrafts and still get the offer. Bad things previous limit for the balance transfer offer. Hidden Charges on transfers. Some banks charge a commission processing the balance transfer.

How long the offer is valid? Normally there is a cutoff point of account opening when the offer is not valid. Be very aware of it, otherwise you might end up a balance transfer to a higher rate! What about new purchases? Unless there is also an interest rate of 0% on new purchases then you should avoid making new purchases on a balance transfer card. This is because banks try to reduce the balance transfer debt quicker than the new debt. Provided your credit history is reasonable, there is nothing that you have several cards for different purposes. A good way is to have a card, which specializes in 0% on the purchase of new (and see another card for balance transfers. What happens when you are finished transferring the balance period? When the balance transfer offer period Debt finishes return to the typical variable APR. Lenders expect at this point that the cardholder will keep the card and part of the debt, so they can start charging interest and make some money! So take into account credit card low interest rate, however, there is nothing to discipline the holder of the credit card to switch to another balance transfer deal and closing the account. The cycle begins again.

Always allow 6 weeks to 8 weeks before the end of the offer period to request a new card. This means you can get the balance transferred to the new card before the lender can start charging the higher rate. You have to be organized to do this, but if it does the job. People who regularly switch balances are know as card tarts. The Golden Rules There are three things to look out a balance transfer card As mentioned above, the naive may become trapped when spending on a balance transfer card. Maintaining regular payments. If you miss a payment you incur a penalty, so taken into account. To be sure to establish a direct debit. The interest rate applied when the offer period ends. Good luck with your choice.