Do Not Mismanage Balance Transfers
June 4, 2008
Balance transfers allows you to consolidate your high-interest rates credit card debts into a credit card with a low-interest rate. You can have the freedom to choose how long to pay your consolidated debt according to your capacity to pay. However, there are drawbacks with its use:
1. Make sure you pay the amortized balance transfers in full to avoid getting interest charges on your consolidated debt.
2. Freeze your credit cards by not using it anymore thus not accumulate further debt.
3. Use your credit card with consolidated debt sparingly so that you will only have to pay for the amortized balance transfers monthly.
4. Do not miss paying the amortization or else the bank may increase its interest rates that will defeat the purpose of your transfer.
Balances to high….
May 15, 2008
So there is a solution to paying all the high interest rates. Well that is all granted you have not exhausted all you limits. Applying for a new card with a much lower interest rate is a good thing…if you can get accepted. Unfortunately if your credit cards are all near the limit basically no one is going to give you a new card even if its to transfer a balance. I recently learned of this first hand. And why do you suppose all these people are willing to give you credit and then suddenly increase your interest when you have never been late on a payment and currently have several accounts with them Makes no sense to me. Seems as if they would want to try and keep their paying customers happy; especially the ones who have had no late payments, no over the limit fees and have been steady customers for several years. I am not sure that there is any credit card company that does not eventually raise the interest rate. A lot of them also pull fast ones like “oh your such a good customer we are going to increase your limit”. Yes they do increase the limit and as soon as you take advantage of it they also raise your interest rate which always raises the payment. My advice if at all possible when you receive those notices that your rate is increasing call and ask why, then simply tell them if not left the way it is you are taking your business elsewhere a lot of the time they change their tune. Some are not that cooperative though. When this is the case balance transfer as many times as necessary ; yes you may only get that low interest rate for a year; however you can make the same payment and the balance will decrease faster on a low rate card. Sometimes you can even get zero percent for twelve months so everything goes to the principal.
Balance Transfers Can Save Debt
May 8, 2008
Sometimes it is best to get balance transfers. This will enable you to pay less interest and in the long run save a great deal of money. Balance transfers are there to help you avoid over-drafting. Let’s face it. When you accidentally over-draft, you can end up with a ton of fees. This is certainly not any good. Use your balance transfers wisely and to your advantage. You can save in the long run and keep yourself from getting into further debt.
Balance Transfers
April 12, 2008
Balance transfers can be a solution to existing credit cards with a high interest rate and an outstanding balance. Many companies offer balance transfers with a low interest rate and some offer a 0% interest rate to gain your service. This can be a good way to get your card paid off faster and with lower monthly payments.
Balance transfers can help consolidate all your credit card debts in one place. If you plan to purchase a necessary item, such as a refrigerator, washing machine, etc. and have no choice but to use a credit card, a balance transfer can help lessen the overall debt you’ll pay. Purchase the item and use your existing credit card. Then use the balance transfer with a low or 0% interest rate.
Although balance transfers can seem ideal, it’s important to read the terms very carefully. You need to understand if there are any hidden fees, what the expiration date is, what type of transfers are eligible for the low interest rate and if the interest rate is fixed or if it will increase over a period of time. If you don’t understand the terms, call the company and ask questions until you clearly understand. Otherwise, you could end up spending more than what you would have with your existing card.
For those who don’t have control over spending, balance transfers may seem an easy way to shuffle debt around in order to spend more and acquire more debt in the process. In that respect, you could get into more financial trouble. Credit cards and balance transfers can work very well, but they won’t clean up bad spending habits.
Read the terms carefully. Identify bad spending habits and make a commitment to resolving them and balance transfers may help you get out of debt faster.
Questions to ponder re: balance transfers
April 11, 2008
1) How long will my introductory APR last?
2) Whats the new APR going to be?
3) Does the introductory APR work towards balance transfers?
4) Do I have to pay an annual fee?
5) What kind of late fees pertain?
6) Are there balance transfer fees that I have to pay?
Ask for a lower interest rate
April 11, 2008
If you love your credit cards, you probably have a standby card you’ve had for years. The card you pull out first when you go shopping, your number one go-to credit card.
How long have you had your favorite credit card? A year? Five years? Ten years?
Have you ever called your credit card company and asked them to lower your interest rate? There are many people with credit cards out there, but there are even more kinds of cards trying to get all these credit card customers to their card, to their good deal. You can take advantage of this knowledge without ever having to switch to a new company.
It helps if you make your payments on time, and at least make the minimum payment when you pay your bill. Find the customer service number and call. Ask the customer service representative right out of the gate, “Do you have the authority to lower the interest rate on my credit card?” If they say no, then ask to speak to someone that can. You should not have to spend a lot of time on the phone with multiple people – your goal is to get to the person that can help you as fast as possible so you only have to ask once, not a bunch of times while you’re being transferred.
Also, when you’re being transferred, ask the representative if there is a direct dial number or extension, if you get disconnected this can save you a lot of time. If there is not a direct dial number or extension, ask for the name of the department so if you have to call back you can ask the customer service representative that answers to transfer you directly to that department.
Once you’re on the line with the right person, tell them you’ve made on time payments and you are getting all these other offers in the mail…but you’d rather have your company match the offer instead of switching. They’ll see you’re a valued customer and lower the rate.
You can do this about once every six months. It never hurts to ask!
Wells Fargo Direct Deposit Advance …
May 15, 2006
Have a Wells Fargo Visa/bank card? Do you have direct deposit? Do you sometimes live paycheck to paycheck and occasionally need an advance? Well there is a handy feature on the Wells fargo web site when you check your balances - very hidden, and I stumbled on it by accident - but it has become a lifesaver during my recent job-layoff threat … its called “Direct Deposit Advance”. All you have to do is click the button, choose the amount (up to $500 or whatever you are approved for) you want to advance, and it will automatically and instantly post to your account. When your paycheck is deposited, you’ll get that amount deducted, as well as a 10% borrow fee. Instant way to advance money to your visa/bank card. Pretty cool ….
Late Credit Card Payments Are Staying Sky High
January 10, 2006
A large majority of consumers who have credit cards are behind on very large bills. The blame is being laid on record high gas prices as well as the fact that the Federal Reserve increased interest rates 13 times in almost two years.
Want to Compare Credit Card Offers?
November 10, 2005
Don’t know which card to go for?
There are a bunch of sites out there that give you information on credit cards, but many of them rely heavily on advertising. If you don’t want to be blinded by psychedelic banners and annoyed by insistent pop-ups, then try MyRatePlan.com and CreditCards.com — two very helpful and professional-looking sites.
MyRatePlan.com allows you to easily compare features of various cards and even gives them ratings (hence the name). Other sections of the site (comparing flights, loans, hotel rooms, insurance, VoIP, etc.) are also worth investigating.
CreditCards.com might be even more comprehensive — it covers all sorts of credit card categories (low interest, airline miles, balance tranfers, instant approval, etc.).
Welcome to Credit Cardenza!
April 9, 2005
Credit Cardenza exists for the sole purpose of helping you find low interest rate credit cards!
This is yet another fine creation of Niner Niner.
Niner Niner is a collaborative media company that pays you, yes you, to blog about your favorite topics!
If you’re interested in credit cards and would like to write for the Cardenza, head on over to Niner Niner and sign up today!
