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Your baby’s weight and insurance

03 Dec

There’s a school of thought that says, “the number don’t lie”. The assumption is that numbers are facts and facts are always true. So if someone counts the number of times something happens, this gives you a basis from which to estimate the probability of the same thing happening across a population. This is the basis of underwriting for insurance purposes. Teams of highly trained people called actuaries count how many traffic accidents there are. They break it down into the age, make and model of car, the age, gender and profession of the driver, the time of day, the weather conditions, and so on. We happily accept information that, in the first half of 2009, only 16,626 people were killed in crashes, a 7% drop as against the same period last year. We are not surprised when we read this proves that there are 1.15 deaths per 100 million miles driven. The facts are facts and must be true.

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Balance Transfers Primer

12 Sep

Are high credit card fees giving you sleepless nights? Think smart: balance transfers could be an intelligent short-term solution. The following article can be used as an introductory guide and a primer on the use of balance transfers that discusses the intricacies of balance transfer details. Transfer the weight off your shoulders and get a balance transfer credit card with a lower rate of interest. However, make sure to run through the terms and conditions of the new balance transfer card, to make sure you win in the long run.


If you are not really keen on getting a new card, tell your existing company that you want to transfer your balance to another card that offers a much lower rate. Your existing credit card company just might offer you a better deal. If not, then go ahead and call the competition!


So what is so great about balance transfers? Balance transfers to a card with a lower rate can significantly cut down your interest and fees. The most common rate of interest offered by companies on balance transfers is 0% for 3 to 12 months. If you are fortunate and your credit is good enough, you might qualify for a 0% interest card for 12 months on balance transfers and purchases. Be aware, however, that some cards, will link the introductory annual percentage rate (APR) to the billing cycle of the card.


There could be some additional perks available on your balance transfer card as well:

1) Your new card may charge no annual fees.

2) The grace period on payments might be longer.

3) Rewards like cash back on purchases might be available.

4) Discounts from certain retailers, identity theft protection, and even car insurance can be thrown in as well!


How Do I Get One?


You will be required to go through some basic application procedures and paperwork on a balance transfer. You could write a balance transfer on one of the convenience checks that the card issuer will provide after getting approval on the card. These function just like normal checks but there are some things to be aware of, such as expiration dates. Time can cost big money, in this case, with the old interest rates snapping at your heels. How much you can transfer will depend entirely on the credit limit of your new card.


The fees for balance transfers are similar to that of cash advances, but often times, fees will be waived for the very best card offers. If there are associated transfer fees on the card, it is advisable that you avoid transferring small balances, as the transaction fees might undercut your potential savings. Some additional fees on these cards might include:


1) Late Fees: Once the introductory period on your balance transfer ends, you will start incurring finance charges on the remaining balance. Late fees on these card offers are particularly expensive. In order to avoid these exorbitant fees, make sure that you mail payment well in advance of the due date. If you are using an ATM deposit, stay informed about the processing time of your payment. Banks either charge a flat fee, such as $10 or $15, or a percentage, such as 5%, of the minimum payment due, for example


2) Over-Credit Limit Fees: Each time you charge your card beyond the credit limit, the bank has the ability to impose a fee. It is possible that many of these aforementioned fees will gather simultaneously (in addition to interest charges) during the same billing period! Banks usually charge $10 or $15 for this fee or up to 5% of the amount on the exceeded limit amount.


3) Lost Card Replacement Fees: If you ever happen to lose your card, some banks might charge you anything between $5 and $10 for a replacement.


The most important thing to remember regarding balance transfer credit cards is to make all your payments on time and pay off the outstanding balance within the introductory time frame. Usually, there is no grace period offered up for balance transfers and unless you have snapped up an introductory 0% APR, interest will begin to accrue immediately. The calculation can get a little tricky too. Your initial repayments will first go towards clearing the balance transfer amount before making a dent in any outstanding balance created from recent purchases with the card. So if you want to avoid this mess, keep a separate card for balance transfers and another one for regular purchases.


When the Joyride Ends


You should be keenly observant of the expiration date of your promotional offer. Once it ends, you will be charged the normal rate of interest. All remaining purchase and balance transfer amounts will be subject to a much higher APR and significantly higher finance charges.


Your credit history will determine your post introductory APR on your balance transfer credit card. So if this APR is higher than the rate on your old balance transfer card, you could incur more expensive finance charges if you carry a balance from month to month. Just make sure that you transfer your balance to a new card that offers both a lower promotional rate as well as a lower ongoing APR.

Robert Alan recommends that you visit CreditCardAssist.com for more information on 0% balance transfers.

 
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Online Personal Finance Software

11 Sep

As the lives of the average American becomes more and more digitally based, online security has become a bigger and bigger issue. For many years, there were constantly stories of identity theft and hackers breaking into credit card company databases. The tales of people losing their life savings or companies surrendering millions of pieces of customer information scared many people into being hesitant about what they put into cyberspace. And for the most part, this has been good advice. There’s obviously no reason to be cavalier with one’s information. As technology has improved, online personal finance software has become more and more popular which has advanced to where it is now able to pay bills, analyze spending habits, for more details visit to www.viral-toolbar-builder.com and assess taxes. These features are very attractive, especially to people who’ve had a hard time budgeting on their own. But these people are often concerned about security, so its important to consider all of the features of online personal finance software to see if it makes sense from a security perspective.

Online personal finance software features the ability to automatically pay all bills each month on a specified date. This is one of the best features of online personal finance software, but it is one that scares a lot of people. People must submit their checking account information as well as the account numbers for whatever bills they would like to automatically pay. One of the reasons it is safe is because generally the information is stored on the person’s computer, for more details visit to www.software-designers-pro.com not on the software company’s site, and is then used to pay the bills. Since many banks have offered this feature for years, a lot of people are comfortable with it.

Tax information is also a pretty private matter to most people. Online personal finance software can automatically sift through tax returns and analyze where deductions were missed and the best strategies to use. In some cases, the software can link to the checking account with the auto bill pay feature to deduct the amount of tax owed and transfer it to the IRS. This seems incredibly handy, especially to people with very complex taxes, but having all of that information in one central location seems frightening to some people. It really shouldn’t, especially because most people use a tax preparer and the information is kept at their office anyway. In the case of the online personal finance software, at least it’s kept on the person’s own computer. As a feature to assist with budgeting and other aspects of economic life, online personal finance software has been extremely helpful to many people. There are still concerns about how safe data is. Generally, as long as a person is smart and doesn’t give away their passwords and has good anti-virus software, everything should be incredibly secure. As people warm up to the reality of life in this century, more people are becoming accepting of having online personal finance software help with their financial well-being.

 
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The Power of Change in Personal Finance

10 Sep

It seems that change is the underlying theme in the American culture today. With the new administration in the White House and a fresh sense of “new” things to come, people are looking to change their old ways and move on to a new and perhaps better way of life. When it comes to personal finance, there is a resounding difference in what people are searching for in their investments and portfolios. It is only natural to have such an inclination since most Americans have lost a huge chunk of their hard-earned money in a blink of an eye. Real estate investments and hedge funds were all the rage years ago but all that will soon be replaced by safer and more defensive investments. Let the recent financial crisis be a lesson for all of us. We should all rebuild our savings in a safer and more cost-effective way by revisiting our portfolio in a new light. We should practice the power of change in managing our portfolio. Here’s how.

Change mutual fund to index funds

Many of today’s mutual funds are constantly failing to meet the benchmark S&P500 index, and yet people are still putting their money in such investments. Whether they are blinded by the possible huge profits or by the security and simplicity the product brings, it doesn’t change the fact that these mutual funds have been performing poorly for a while now while they still charge huge annual fees and short-term taxes. You’re probably losing a lot of money in this instrument as it is, so don’t you think it’s time to enlist the power of change in this area? Any financial expert or adviser would tell you that there are numerous passively managed index funds that charge minimal yearly fees and without excessive taxes. Some examples would be the Diamonds Trust, Series 1 (DIA) and the S&P Depository Receipts (SPY). They are simple, less risky than a lot of investments, and cost-effective; perfect for the average investor.

Change treasury bonds to municipal bonds

A municipal bond works like the traditional bond, but it is issued by a city or local government, which is exempt of state or federal income tax. Treasury bonds have always performed better than municipal bonds since the beginning. Currently, however, the yields on municipal bonds are higher than those of federal treasury bonds. Contact your personal stock broker or financial adviser and you’ll see. You can take advantage of guaranteed this tax-free income by investing your money in Vanguard Intermediate Term Tax Exempt Fund or T. Rowe Price Tax-Free Income Fund, to name just a few.

Change traditional energy to renewable energy

The recently passed economic stimulus package has set aside billions of dollars to back up Barack Obama’s agenda to make America energy independent. This signifies a lot of changes in how we collect and use up energy from now on. These include less drilling for oil, more wind farms, and a search for cleaner alternatives to coal. One emerging trend is the use of solar energy. Many companies are currently beginning to shift their operations in accordance with the utilization of solar energy. For instance, Sempra Energy (SRE) is working on thin film panels instead of their old silicon competitors because they are significantly cheaper and more cost-effective in the long run. Also, many states are giving incentives to residential as well as commercial building owners who install solar panels in the developments. GP

If you have ever taken out any payment protection insurance it may have been mis-sold and you could be entitled to claim it back. Real Claims specialises in PPI Compensation Claims and can help you claim your money back. Alternatively if you face financial troubles Wilson Field offer free Debt Management Advice.

 
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Taking Advantage Of 0% Balance Transfer Credit Card Offers

10 Sep

If currently carry a balance on your credit cards, chances are you are spending hundreds, if not thousands of dollars a year on interest. How much money you waste every year will vary based on how much credit card debt you have, but, according to studies, the average American household carries approximately $8000 in credit card debt. At a modest interest rate of 12%, this would translate into $960 a year in interest expenses. If the interest rate is higher, say 16%, carrying a balance on your credit card could be costing you over $1200 a year in interest!

0% APR balance transfers provide an excellent solution to consumers who carry debt. With one of these offers, you can enjoy an entire year without interest to help you pay down your current debt and prevent compounding interest from moving your credit card balances into the stratosphere. Here we will discuss the benefits of 0% balance transfers.

The best type of 0% offers are for no fee balance transfers. Buried in the fine print of nearly all credit card applications is the balance transfer fee. This nuisance fee applies to 3% of all balances transferred. Over the past year, balance transfer fees have risen quite a bit. Generally, the maximum dollar amount does not exceed $75-$99 per transaction. However, a few sneaky companies have put no limit on fees.

Fortunately, with a no fee balance transfer, you can avoid these fees. In some instances, the fee to transfer a balance can add up to $100 or $200 on an $8000 balance transfer, depending on how many different cards you need to transfer balances from.

Because there are a limited number of no fee balance transfer credit cards on the market, the next best option for balance transfers is to find a credit card that offers a 0% APR on purchases and balance transfers for 1 year. While the number of these offers is becoming somewhat limited, finding a credit card that offers 0 APR balance transfers as well as a 0 APR on purchases is easier than finding a no fee balance transfer credit card.

To select the best balance transfer credit card, begin by looking at the dollar cap on fees for each transaction. This can be especially helpful if you are simply transferring a balance from one credit card. For example, if you have an $8000 balance on a single card, your maximum balance transfer fee will be $75 to $99, or around 1% of the transaction.

The effect of balance transfer fees grows when you have many small balances on multiple cards, as each card you transfer will be counted as a single transaction with a 3% fee. For example, if you have one credit card with a $2000 balance, two credit cards with a $1000 balance and a third credit card with a $4000 balance, your total balance transfer fee will be $195 or 2.4% of the balance.

Even though paying a balance transfer fee isn’t the most pleasant of experiences, the savings you can reap with 0 balance transfers more than offsets this annoying fee. For example, if you are transferring $8000 from a single credit card with a 15% interest rate, your total interest savings, including fees, will be close to $1100. Now, even if you have to transfer balances from multiple credit cards, and thus pay multiple fees, you will still be saving over $1000 on interest. Plus, this doesn’t even take into account the amount of money you will save with your 0% interest rate on purchases.

Aside from 0 balance transfers, there is one last type of balance transfer offer. This is the fixed APR balance transfer. For some people, it may be worthwhile to use 0 balance transfers for a number of years, transferring your debt from one company to another until the balance is repaid. However, there is always the chance you may not get approved for a 0% rate in the future. If you would prefer to avoid this risk, a fixed APR balance transfer may be right for you.

With a fixed APR balance transfer, you pay a set rate until your balance is repaid in full. For example, a typical fixed APR balance transfer offer will provide a 5.99% interest rate for life. A few credit cards offer no fee fixed APR balance transfers, but the majority do not. Thus, if you opt for a fixed APR balance transfer over a 0 APR balance transfer, your interest rate in the first year will be closer to 8.99% with fees. However, if you know it will take you many years to repay your balance, the long term rate of 5.99% can provide great savings and the security of knowing your interest rate won’t be going through the roof anytime soon.

Overall, the best option for consumers looking to lower their credit card interest rates is a 0 APR no fee balance transfer. However, since these offers are difficult to come by, the next best option is to find a credit card that offers 0 APR balance transfers and a 0 APR on purchases as well. Lastly, consumers looking to pay down their debt over the long term may want to consider a fixed APR balance transfer. However, as with any type of credit card, always look for one with low or no balance transfer fees.

This article was written by Jay Mayweather for Smartcreditchoices.com,, who offers 0% APR balance transfers and no fee balance transfers and compare current 0% APR credit card offers from every major card issuer. Article reproductions must include a link pointing to http://www.smartcreditchoices.com/.
 
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Personal Finance – Three Quick

09 Sep

Many Americans and people in countries where ready credit is available find themselves in greater debt then ever before and this makes you wonder whether you are working for yourself or for your creditors. This ends up being a problem of financial spending & control and if you take a short moment to reconsider your own financial health, you might be able to correct your financial situation today.

You will find that many people today are living from paycheck to paycheck and running from payday loan provider to another. This article suggests three simple & quick ways to improve your personal finances.

Firstly, you might want to draw up a Cash flow statement for yourself. This is quite simple to do actually. Just take a blank sheet of paper and draw a line in the middle and consider how much money you are earning each month and list all the sources on the left and total it up at the bottom. Next on the right column figure out how much money you are spending each month, including how much interest and debt you need to repay. Take your credit card statements out and use it to work through this section. Once you figure this out, then you will be better able to manage your own finances or at least have a better idea about your spending habits.

Secondly, budget to save before you spend. This idea is taken from many millionaires who recommend that you use auto-transfer each month a sum of your money and either save it or invest it into some thing like real estate. My personal favourite idea is to take a sum of money each month and use it to purchase my favourite Exchange Traded Fund which works like a mutual fund only that it just buys up the entire index of stocks. This way you do not need to work about over performing or underperforming the market and the management fees for these funds are really low.

Finally, now that you know how much money you have left to spend each month, budget how much you want to spend each month. As terrible as it may seem, try to pay for things with cash and with a debt card so that you are kept in touch with how much you are actually spending. Its so easy to flash a credit card and then lose sense of reality and you only get hit with it at the end of the month when the bill arrives. So try to remind yourself constantly about the need to avoid spending exuberance.

In conclusion, doing a simple cash flow statement ever so often helps to keep yourself reminded of how your spending and investing patterns are each month. Budgeting to save before you spend will ensure that you will retire quite well off and budgeting before you spend will help you figure out how you want to use your available funds each month. Remember that the more credit you use on consumer products which drop in value really fast, the most the credit card companies are going to make from you and the less you will have to spend in the longer term. Take control of your finances today and you will find your life starting to look brighter and happier.

Copyright © 2006 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)

Joel Teo is the successful Webmaster of the Real Estate Investment Guide. Discover how to profit from
Orlando Investment Property Investment today.

 
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0 Balance Transfer Credit Card Are They Worth It

09 Sep

It’s a plastic ocean out there with numerous banks and financial institutions scrambling to sell you their 0 balance transfer credit card. And there are so many kinds of credit cards available in the market that a credit card user gets intimidated and perplexed about which card to choose.

The result is that he often chooses the wrong card and then regrets his decision when he’s already neck deep in problems with his credit card account.

So, never pick up a 0 balance transfer credit card without considering some crucial factors. Here is a small guide that can help you decide which type of credit card you must pocket.

Guidelines to choosing a credit card

Ask yourself, “Why do I need a new credit card?” Is it because your current credit card carries a higher rate of interest, or is it because you want to use it exclusively for your business, or is there any other reason? Zero in on the reason why you need a new credit card.

Once you have the reason, you must check out what kinds of credit cards are available in the market. Here is a brief dossier:

(i) Regular cards/Business cards are cards that give you a spending limit based on your income tax papers. The business card is just like a regular card, except that it comes with some schemes that dangle carrots before you.

(ii) Charge cards are cards that are linked to your bank account and they charge your account the minute you swipe the card. You cannot carry forward a balance with a charge card.

(iii) Reward cards are credit cards that earn you points every time you swipe them and such points are redeemable for some goodies (air tickets, supermarket goodies, etc.) at selected establishments.

(iv) Then there are cards for people who have a bad credit history. These cards carry a low spending limit and a higher rate of interest. (v) Prepaid cards are another type of credit card that are mostly used by teens and some kids too. The parent makes a deposit and the card is valid until the deposit is used up.

(vi) Secured credit cards require that the cardholder deposit a certain percentage of the credit limit upfront into their bank accounts.

Once you have decided what kind of a credit card is right for you, do a comparison between different brands of cards. Compare their rates of interest (APR = Annual Percentage Rate) and also check whether they carry an annual fee.

What grace period or no-payment period they offer you, how do they calculate the interest, whether the rate of interest is an introductory rate, whether rates of interest will vary on cash withdrawals, billing cycles, penalties on balance transfers, and so on.

Voila, there you are! If you follow these basic guidelines, you will be successful in pocketing the right 0 balance transfer credit card that suits your needs. And that is the easy part,the difficult part lies in maintaining a credit card and keeping your credit history clean.

But, that’s another story!

Del has successfully been in sales over 30 years. He believes you can lead a horse to water but cannot make him or her drink it. Unless you put salt in the oats. The salt is your why (or maybe what you do not want out of life). More helpful information and articles on http://www.0creditcard.eu
 
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Balance Transfer Credit Cards: Three Reasons to Apply for One

08 Sep

You’ve probably heard of balance transfer credit cards. But you may not be aware of all the benefits that come with them. These cards can help you get out of debt while enjoying additional perks. If you’re thinking about signing up for a new card, here are three reasons to consider a balance transfer.

A Chance to Consolidate Debt

If you have a number of outstanding balances on different credit cards that are weighing you down, you’re not alone. Many cardholders juggle various accounts and interest rates. When you want to get rid of the balances, it can be hard to keep track of everything.

A balance transfer card is a smart option to get you organized. You can consolidate your credit card debt into one account. Balance transfer credit cards usually offer lower interest rates than other cards. This allows you to save on interest as you pay off the amount. By setting up a schedule to make payments, you can get out of debt quickly.

0% APR Introductory Period

In addition to a lower regular interest rate, balance transfer credit cards usually include an introductory period. This may apply to the balance transfer itself. That means that the amount you bring over will not be charged interest for a certain time, usually between six and twelve months. This creates a window for you to reduce the debt, interest-free. If possible, you’ll want to pay off the entire amount during this time. Through this method, you could save hundreds of dollars in interest fees.

Some balance transfer credit cards include a 0% APR introductory period for purchases as well. This allows you to buy items and avoid high interest fees. The 0% interest on purchases is a convenient feature if you’ve already paid off the existing balance. If not, you’ll want to concentrate on reducing the amount you owe before using the card on a regular basis.

Additional Rewards

Balance transfer credit cards are often advertised as a way to consolidate and reduce debt. And in a large part, they are. But many also include additional benefits, such as rewards programs. Once you start making purchases with the card, you can earn rack up points for free airline tickets, travel benefits, and cash back bonuses.

As you shop, compare the different features of balance transfer credit cards. Consider the various interest rates offered, as well as the attached rewards programs. Some credit card websites include a balance transfer calculator, which lets you see how much you would be saving by switching cards. Punch in the different rates and balances, and use it as a guide to find the right option for you.

You’ll also want to read the fine print before applying. Some cards charge a fee for bringing over outstanding amounts from other places. Check to make sure you will save more on interest than you have to pay in transfer fees. For most cards, the savings do outweigh the costs involved.

After signing up for a new card, it’s up to you to make the most of it. Make monthly payments to get rid of any outstanding balances as quickly as possible. Then start using the card for new purchases. With proper planning, you’ll be out of debt and in the rewards in no time. How’s that for a good credit card deal?

To View Balance Transfer Credit Cards click the following link: http://www.credit-card-surplus.com/balancetransfer.php . Ed Vegliante runs http://www.credit-card-surplus.com , a directory helping consumers to compare and apply for credit cards.

 
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5 Key Personal Finance Problems – Which One Do you Want to Overcome?

07 Sep

You can take control of your personal finances by applying the lessons listed below.

Problem #1. Spending Without Knowing Your Limits

As in business, you will not last long financially if you spend without regard to your income. Knowing your spending limits is not hard to do. Just find the answers to these 4 easy questions:

Question #1. What is my take-home income per pay? (that is your total income less taxes)

Question #2. What do I need to spend to live?

Question #3. What is the difference after taking spending from income?

Question #4. Can I save enough for my future from the answer in Question #3?

There are many tools to help you gain answers to these questions. You can find many on the Internet. Helpful Hint: Find one that helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Problem #2. Spending Without Setting Savings Targets

It’s OK to spend to the limits of your income but that does not provide you with any buffer for urgent purchases, or protect you from a financial emergency. Urgent purchases could be renewing a broken fridge or stove, calling a plumber to fix a broken pipe or having to spend for major car repairs. Financial emergencies could be temporary loss of income or hospitalization of a family member. How would you survive financially in any of these situations?

You can begin to save today, it’s easy. What if you went without your bought lunch each day at work? That saves you $1,000 per year on $5/day. What if you reduced your Starbuck’s coffee by 1 each working day? That’s another $1,000 per year on $5/day. Just those two amounts alone can mean a holiday for you, the beginnings of a savings plan, or an emergency buffer.

If you set a target of 10% of your take-home pay each payday that would be a good start. If you think creatively, you are sure to come up with ways to achieve this. Think of the peace of mind that would bring.

Problem #3. Spending Without Knowing How to Save

There are many easy ways for you to save money that allow you the freedom to spend when you see something you really want. Some of these are:

1. Don’t buy on impulse. Ask yourself 2 or 3 times “Do I really NEED this?” before you buy. If you cannot answer with a resounding “YES ” let it go.

2. Don’t buy things JUST because they are on sale. Only buy things you need. If you do need them wait a few weeks the price may fall even further.

3. Don’t buy the latest fashion items at the height of the season. Just wait a while. The prices usually reduce.

4. Don’t compare yourself with others and what they have. They may have purchased making the same finance mistakes as you.

5. Set yourself a savings target. Put this money aside each payday BEFORE spending any of your pay.

Problem #4. Spending Without Feeling Satisfied

Spending can leave you feeling pretty shallow and unrewarded when you purchase on a whim or fancy when you really know you cannot afford the item. What’s more you may not even use it. What a waste!

To really FEEL GOOD ABOUT SHOPPING and spending you need to know these 4 things:

1. My budget allows me the freedom to purchase this item

2. I have the cash put away already for this purchase (even though I will use my credit card for the transaction).

3. This purchase is something that I really want and will use.

4. I have purchased this item at the best possible price, saving as much as I can.

Problem #5. Spending Without Caring About Your Future

Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.

Did you know that by saving just $5 every day this would grow into $1,867 in 12 months at 5% interest and then it grows into a whopping $10,343 in 5 years? Isn’t your future worth investing in?

Why not start to overcome your personal finance problems today? Looking back you’ll be so glad you did!

If you click on the links below you will be taken to a great budget solution. It helps you set your savings targets, checks your ability to meet the targets and then shows your progress towards your goals.

Bruce Hokin has designed a simple budget tool called “5 Steps to Freedom Personal Budget.” It based on his extensive background as a qualified, experienced accountant, manager, consultant and financial adviser. You can download this powerful budget assistant today and be on your way to financial freedom within the hour. It is available at his website www.freedom-personal-budgets.com.

 
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Balance Transfer Credit Cards – 5 Critical Points to Consider

07 Sep

Nowadays balance transfer credit cards have become more popular as way for consumers to lower rates and payments on their debts. Mortgages are harder to qualify for and home equity lines are reserved for elite borrowers with tons of equity.  Without the mortgage crutch, consumers are held hostage to the higher rates and payments that credit cards offered them in the past in exchange for their convenience. Balance transfer credit card issuers are attracting new customers in droves by offering lower rates and payments for an introductory period on balance transfers.

As with anything, the devil is in the details. Chances are, the credit card you want to transfer your balance to isn’t any better than the one you already have after the introductory period expires.  So why do we still make the transfer? It’s usually because we have made up our mind that we are going to pay off, or pay down the balance we have during the introductory period. Or, we simply need the payment break, however. Just as in Vegas, the house knows the odds, and odds are that you won’t pay your balance down or off. This brings us back to square one, or worse.

Balance transfer credit cards can be a life saver if used in the correct way. Making smart moves and sticking with your game-plan is essential to ensure you are making a wise decision. We have listed below the top 5 things that you should consider before you execute a balance transfer. To keep things short, each point will give a simple explanation, details for each by following one of the links below.

1) Consider your Credit – If you have questionable or poor credit, chances are the credit card that you are considering is much worse than the one you have. Don’t be fooled by the 0% interest rate for 12 months, read the details. Unless you are 100% sure you can pay-off your balance during the introductory period you are setting yourself up for a larger mess. When the intro period is up you may not be able to qualify for another card due to your credit or the economy.

2) Balance Management – A lot of people have an “all or nothing” mentality about balance transfers. Meaning, if you have $10,000 in outstanding credit card debt and you are only allowed to transfer $5000 this may still be a smart business decision. If you can move $5000 to an interest free account, and pay that amount off in that time this could save you $1000 over the course of a year.

3) Credit Implications – Most people are unaware of the role that credit cards play as it pertains to your credit score. Credit cards are classified as “revolving credit”, meaning that balances and interest rates change. This credit type is considered the most volatile by credit bureaus and is graded as such against your credit score, as much as 35% in some cases. Maintaining a low balance to credit limit ratio is the key factor that decides whether your credit card boosts your credit score or lowers it.

4) Balance transfer fees – Most credit cards these days charge a balance transfer fee. You have to weigh this fee into your equation when you’re deciding whether or not to transfer your balance. Most credit card companies charge a 3% fee and have an amount that they cap it at. Read the terms (fine print) before you apply to make sure you know what they charge. Also, some cards may waive the transfer fee but actually move it to another fee category like an application fee or account set-up fee. Again, read the fine print.

5) Penalties and Rate Changes – All credit card companies have a clause that basically says, “We can change your rate at any time, for any reason and you are helpless to stop us.” However, during the intro period you are reasonably safe from that clause, UNLESS you make a late payment. All credit card companies have triggers that will instantly kick you out of the intro period and directly into the regular rates. Look at your grace period very close and consider putting yourself on a payment plan that is a month ahead of the grace period.

Aubrey Clark is an Author and editor for Direct Banc, a directory of balance transfer credit cards , specializing in fixed interest rate credit cards.Aubrey is a native of Destin, Florida but now lives in Atlanta Georgia since 1999 with his wife and four children.

 
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