Credit Cards and Balance Transfers

Almost all Americans over the age of 18, have at one time or another been solicited
by the credit card industry offering either a low introductory interest rate or
the opportunity to perform a balance transfer from their exiting credit cards as
a sales pitch to win over new customers. Is a balance transfer a good thing for
me? The answer is in the fine print.

While most balance transfers are self-explanatory, the terms and conditions for
a balance transfer are not. In fact, it could end up costing you a whole lot more
had you not done a balance transfer of your monies. The main thing to be on the
look-out for is the rate or fees the credit card is charging you for the balance
transfers. If they are free, and some are, you have found a good one. Most have
hidden fees.

Secondly, once you have converted your debt from other credit cards over to this
new one, the temptation is to keep these old accounts open. They are now showing
a zero balance and the temptation is to run up these credit cards again, possibly
hoping that another solicitation will come in the mail, offering you another opportunity
to do a balance transfer. Many of our clients at Nationwide Debt Reduction have
fallen into these traps and end up calling us stating, I really do not know
how this happened. Most times they are right. They simply fell for the sales pitch.

We suggest you know the facts BEFORE making any decisions about conduction a balance
transfer with your credit cards. Some of the questions to ask yourself include:

  1. Does the interest rate rise to after the introductory period?
  2. Does the low introductory rate apply to everything, or just to the transferred funds?
  3. Is there a fee for the balance transfer? Some cards require a percentage of your
    balance.
  4. If there is a balance transfer fee, is there a cap or limit on how high it can go?

    If not, you could end up paying a large fee for a large balance. In fact, some cards
    even count this fee as a new charge that will have a higher interest rate attached.

  5. Is there an annual or sign up fee in order to get this balance transfer?

By knowing what the facts are first, you can now make an educated decision as to
whether or not a credit card balance transfer is right for me.

If you would like more information about credit card debt, or debt relief plans,
Nationwide Debt Reduction would be happy to assist you. Call us toll free at 800-890-6658
for a free no obligation consultation.