Credit Card Balance Transfers | Credit Card Debt Relief Secrets

Low Interest Rate Credit Card Balance Transfers

Before you fall for that low interest rate credit card balance transfer option - read the offer very carefully including the very small print right at the bottom on the back. There are two kinds of balance transfers - those that are processed at the same interest rate as purchases and the ones that are considered cash advances. Cash advance balance transfers are much, much more expensive.

Up front fees can be added to balance transfer fees and the interest rates can be much higher. Always save those that offer purchase rate transfers, even past their expiration. If you are truly abused by a credit card issuer (the small firms are much more likely to treat you poorly), complain. and complain loudly!

If you're offered a credit card that offers a wonderfully low interest rate, read the wording of the offer very carefully.

Does it say the interest rate IS 8% or does it say the rate will be AS LOW AS 8%.

If it's the later, you can bet the rate you get will be much higher when you're risk adjusted.

If you visit your official state web site, there you will find a link to your state banking regulators office. If they offer an online complaint for - fill it out. You may be surprised by their response. Or find a prominent consumer advocate or even a consumer oriented TV reporter who can turn up the heat - but complain!

Another tactic you might want to consider - create a free web page on one of those sites that offer them. Give the offending outfit some really bad publicity. Don't think that won't turn up the heat on them! Just be sure to keep your comments restricted to the simple facts. Don’t trash them unfairly or you might end up getting sued.

If you find a nice low purchase rate balance transfer situation - use it but you must resist the temptation of using the cleared card again. Too many people transfer balances only to spend and run up the balance on the old card. Then you end up with the worst possible outcome - two debts instead of one.

The absolute minimum here is to make the full minimum payment on all credit cards every month without fail. If you are late with only one payment, bad things will happen.

First you will be charged a late fee. Then you may have your interest rate increased to their highest legal level - a common increase might take you from 8 -13% to 21-32%. (Which is most painful if you're presently in a low-rate introductory period).

Then they put a black mark on your record at the big three credit bureaus. Then your other credit banks may see that and raise your other loan rates. In addition, you'll have a harder time getting credit limit increases. Bad, bad, bad and it all starts with a single late payment. One little slip and down you go!

If you need a card for emergency use and won't be carrying a balance from month to month, find a card with no annual fee and as long a grace period as possible. You can ignore the interest rate for the large part.

The credit card issuers use a simple formula to determine your ability to pay off a debt. If your total debt load exceeds 28% of your gross income - they will choose to avoid you.

Be sure you're well under that level on any applications you submit. 28% to around 50% is considered a problem. Over 50% means you're headed straight to bankruptcy land.

Always keep any correspondence from your credit card bank. Keep a file for anything they send, in particular store all cardholder amendments as you may need them later. Read them carefully. Underline any passages you don't fully understand. Call them and ask them to explain each term until you have a clear mental picture of what you're getting into and are convinced it's a good deal.

"Average Daily Balance" is the most widely used system for calculating interest payments. Be very skeptical of any other payment scheme. Avoid cards that use the "previous balance" system.

Write down the closing date for each credit card you have. Then check to be sure of each card's grace period. If a card closes on the third of the month, the best time to charge with it are the first few days after it closes. That way you get the maximum use of the bank's money. This works best if you don't carry a balance from month to month. (This slick tactic is widely used by the rich)

Run to a credit counselor - don't walk if you are unable to regularly pay the minimum payments on all your cards. It's much better than waiting until your credit is shot. If he catches it early enough - a good credit counselor can quickly reverse your situation.

They can get the bill collectors off your back and get some or all of your interest rates reduced and may also have some of your late fees reversed. But they have to be involved early - later on down the road they will be much less effective.

If your credit rating is less than perfect and you're only getting high interest rate offers or worse yet not getting any offers at all, you need to start making all your payments on time. In two or three months you should start to get better offers. After a year of on time payments you should begin to see much more attractive offers. (Unless your credit bureau record contains errors)