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The increased use of credit card balance transfers by people with large balances on their credit cards is an indication that Americans are looking for a solution to their debt problems. The only reason to transfer balances from one credit card to another is to get more favorable repayment terms.
Many people play the balance transfer game in hopes of being able to get their credit card debt under control. The strategy can be helpful if the borrower has the discipline to restrain themselves from running up new charges on any of their credit cards. In order to attack debt, you need to stop out of control spending and focus on paying down the balance. Having a lower interest rate can keep the balance from growing rapidly while you attempt to repay the outstanding balance. If you have a high interest rate of 20% or more and a large balance, you may be paying $50 per month or more just in interest. If you only pay the minimum payment, you will wind up paying about 3 times the retail cost of the goods and services you bought on credit. If you can cut the interest rate to about 10%, a larger portion of the monthly payment you make will go towards reducing the principal balance and not toward paying interest.
Often times, if you have good credit and a lot of debt, you can apply for and receive another credit card with a lower interest rate. Most newly issued credit cards will offer you the option to transfer some or all of your high interest credit card balances to their card. They may offer a promotional one-time balance transfer at no charge or with very favorable terms when you sign up for the new card. While it is always dangerous to get more credit in the form of a new credit card, if you are responsible and determined to get rid of your debt, it is worth getting a new card and transferring high-interest balances. Once you remove the balance from your high-interest credit cards you should have the mentality that you will not use the card again until you can afford to pay the entire balance each month. Put the card away in a drawer or file and pretend that you do not have the card. With all or most of your credit card debt transferred to a lower interest rate card, the strategy should be to pay as much as possible each month to get the debt down fast. Even with a lower interest rate, you are still paying a carrying cost for borrowed money. The sooner you pay off the debt, the better you will feel.
Credit card balance transfers definitely can be a useful financial management tool. The best strategy is to avoid accumulating large amounts of credit card debt. If that is not possible, the next best thing is to get the lowest interest rates on the credit card balances. Credit card balance transfers can help.
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What is outstandanding balance in a credit card?
The outstanding balance is very simply the amount of debt that you have charged on the credit card. You owe that amount to the credit card company.
Can you transfer a spouse's credit balance to credit card?
Yes, you can transfer any balance you want to your credit card. Note if you transfer the balance to your credit card, you are now liable for the full debt and not him unless he is an authorized user on the credit card.
If a relative dies and you were paying their credit card debt for them and you are an authorized user of that card are you then responsible for paying off that card debt balance?
No.
Where may an individual find information about the best credit cards that offer balance transfers?
If you are going to do a balance transfer you want a card that will offer you low interest for the remainder of the transferred debt. Some of the cards that offer that are Promise Visa, and a Barclays Card.
What are the names of some credit cards offering 0 percent APR?
Most 0% APR credit card offers are for balance transfers from one credit card to another. This is a smart option if you are looking to pay down your credit card debt. Some credit cards that offer this benefit are Capital One Platinum, Discover It, and the Citi Diamond Preferred card.
Understanding Balance Transfers?
One of the most important things that you can use to further your financial future is a balance transfer. Though most people think that almost all offerings from credit card companies are geared toward favoring the creditor, this isn't exactly true. As more and more competition has popped up in today's credit world, the card providers have to do things to bring in new customers. This is where balance transfers come into play. The card providers offer low or non-existent introductory rates for people who want to transfer their balances. So how does this work and why should people look to balance transfers?What are balance transfers?Balance transfers occur when you take an advance from your current credit card to pay off some other credit card or creditor. Some credit card companies send a check directly to you and let you pay off the other creditor. Other credit card providers will ask for the address and they will send a check to the other creditor on your behalf. This is a really nice thing for people who want to knock out their old balances without having to waste a lot of time. You then have a balance on your current card and you don't have to worry about the other creditors.Balance transfer dealsOne of the things to know about balance transfers is that you don't have to make them at a high interest rate. Credit card providers often provide 0% APR on balance transfers for a period of six months to one year. For those who don't provide the non-existent rate, the balance transfer rate is often quite reduced as compared to the normal APR. For instance, you might pay 3.9% on balance transfers instead of the normal 12.9% APR. This makes balance transfers a good idea and can provide tons of savings for people who are worried about that sort of thing. Ultimately you can knock out your old, high interest debt by taking on different debt at a low rate.Responsibly using balance transfersKnow that people need to understand how to use balance transfers in order to have success with them. They can certainly provide a means of getting out of debt and saving money over time. They are best used to directly pay off that old debt. Some people use balance transfers for personal purposes, but this isn't the best way to make use of the money. When you use balance transfers to pay off old, biting debt that continues to accrue at high interest rates, you help out your credit and you strengthen your financial future. Balance transfers play a huge, important role in the process and you can smartly use them to your advantage.
Where can one apply for a debt consolidation credit card?
While a credit card can be used for debt consolidation, typically interest rates are higher on a credit card than on other types of loans used for the purpose such as home equity loans. However, transferring credit card balances to a new card using a zero APR balance transfer option can help to consolidate credit card balances into one payment and reduce interest. The Discover it Card currently offers zero APR on balance transfers for up to 14 months, as does the Capital One Platinum Prestige card. The Citi Diamond Preferred and Simplicity cards are offering zero APR on balance transfers for 18 months. All of these cards can be applied for online through the banks' websites.
What is a credit card balance A?
It is the balance on your account, indicating either how much money you owe or if you have some money in the account.
What is known as the transferring debt from one credit card to another?
It is balance transfer.
Can business credit card debt affect my personal credit card balance?
A business credit card debt can affect someone's personal credit card rating. A credit report for an individual is processed by activity of one's overall credit. This means that having debt for a business credit card can hurt a person's chances of receiving lower interest for a home finance loan.
Can a high credit card balance prevent you from getting a mortgage?
Your debt is always taken into account. If your income can handle the credit debt and the mortgage there should be no problem. High credit card balances do not mean bad credit. Late or no payments make bad credit. Your better off with a high balance on a credit card that you pay regularly than no credit at all.
Can you pay a credit card with a credit card?
Answer Yes you can! The method is called : Balance transfer. I did it for 2 months in a row. I had no money to pay my VISA card. However, my Discover card had $1000.00 of credit available. My Visa card bill wanted a minimum payment of $300.00. So I transferred $300 from my Discover card (which I was not using anyway) to my Visa card. The next month, I did not have money enough to pay all my bills. So I transferred $ again from Discover to Visa. I did an online Balance transfer.*NOTE Balance transfers do notget approved right away. It can take anywhere from 3-14 business days. Depends on what credit card company it is & depends on the amount of the transfer. So leave yourself enough time before the due date of the credit card (you are transferring money to).Also, be careful with this... the fees for balance transfers can sometimes be steep, and they will increase your debt. Every credit card is adding interest to your debt each month, so don't get yourself into a situation where you are just adding debt and never have a chance to get out.
