Home » Finance » Credit

Winning at the Credit Card Balance Transfer Game

Nick Makaryk
Jul 1, 2008
If you are one of the very large number of people who are carrying a lot of credit card debt, then you can save yourself quite a bit of money by using the feature of balance transfers which many credit cards offer. With balance transfer credit cards, you can successfully take advantage of the introductory rates which are offered by credit card companies. These teaser rates generally last between three and six months after you activate the card. The rates on these cards are anywhere between 0% and 9% - if you transfer your balance for a card with high interest to a lower interest teaser card, you can save a bundle on interest.

Remember that banks usually will treat balance transfers the same as they do cash advances - your balance transfer may be subject to daily interest fees. Watch out for these, they can add up very quickly and have no grace period. The cost of transferring a large balance can be made not affordable in these cases. You should look for a teaser card which does not charge for balance transfers during the teaser rate period.

You should always read the fine print on credit card offers. If you see the term "flat balance transfer", this means that balance transfers will cost you money every time. You should be aware of all the costs associated with your card, including those for balance transfers. Ask your bank representative about these fees even if you see nothing on the application.

Use the benefits offered to you by the credit card grace period. Transfer the balance for your high interest card to the teaser card before the due date on your bill - credit card companies usually offer a grace period of three weeks to a month. After this due date, you will have to pay interest on any outstanding balance. Transferring the balance before this date saves you from having to pay interest on it. However, some of the credit card companies do not have a grace period. You will then pay interest from the moment you swipe your card or from the moment you transfer a balance to it. Don't sign up for any credit cards who do not offer grace periods.

After transferring your balance to the teaser card, you'll get a bill with a due date for payment. You should always pay before the due date and be certain to pay more than the minimum payment. Credit card companies love it when you make minimum payments, since it will take you far longer to pay off your balance this way - this means far more money in interest payments for the credit card company. This is how credit card companies make all of their money in the first place.

As a short term credit card management strategy, balance transfer credit cards can work well for you. However, you shouldn't make a habit of it. Look into all of your options before you get into the balance transfer game you can easily get yourself into deep financial trouble if you are not extremely careful.
About the Author
Nick Makaryk is an Internet Publisher, Copywriter, and Founder of Best Credit Cards A Free consumer Credit Card Comparison site helps consumer minded individuals find the perfect credit card while avoiding high interest rates, charges, and no fees. Compare all Low Interest Credit Cards from accredited card issuers Visa, Master Cards, Discover, American Express.
Rating:
Please Rate:
(Average: Not rated)
Views: 160
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources