Guidelines for Credit Card Debt Transfers

by : James Miller



In the event you are gathering information related to this subject it is good to begin with a range of definitions. A store card is a form of credit card provided by a merchant or larger group of retailers. A store card allows the cardholder to buy merchandise and /or a type of service from the business concerned without having to come up with cheques or hard cash. The store card has a maximum spending limit put on it. The consumer has to repay everything charged to the store card monthly, if not, the unpaid amount will draw interest.

Reward credit cards are credit cards provided to benefit a consumer for their loyalty. When a cardholder draws on their card to pay for merchandise and / or services, they receive bonus points or something similar on their card. These bonus points build up whenever the card is put to use and the card holding customer will then be rewarded. The sort of rewards available with reward cards include Airmiles, discounts at certain shops, free family days out, etc.

A balance transfer is where you move an outstanding balance from an existing credit card to another credit card. The new card will normally have a lower interest rate, meaning that you can save money on interest payments, therefore making savings overall.
There are many credit card companies that now offer deals where you can get a 0% balance transfer for a set period (normally around 6 months but some offer it for up to a year).
Others may offer a low interest rate on balance transfers - say 4%APR - for the lifetime of the balance.
These companies use the balance transfer deal as a way to attract new customers. However, if you do it right, this is a great opportunity for you to save money and pay your balance off quicker! You can do actually make inroads in to the balance, by slowly paying it off, using the money you would have paid out for in interest to eat away at the balance.
You should note that the balance transfer rate will go to a standard rate of interest once the special deal period ends, so about 6 weeks before this happens, it would be wise to start shopping around for another deal.

With over one thousand credit cards available, it makes sense to shop around for the right credit card deal for you. Choosing the right one can not only give you free perks (such as annual travel insurance) but can save you lots of money in interest payments!

Firstly, a great way to save money if you already have an existing credit card is to ransfer your existing credit card balance to one with an interest-free period. Typically, an introductory period will be for around 6 months, so transfer the balance to your new card, then put away the money you would have repaid every month into a high interest earning savings account. When the interest free period ends, use the money in the account to pay off the balance and enjoy spending the interest you've made too!

Look out for cards that offer cashback deals. If you pay off your balance in full every month, a cashback credit card company will give you some money back, normally after a 12 month period. However, be aware that if you pay your bill late, or carry some credit even for one month, you may lose the benefit of a cashback deal as the interest you may be charged will probably outweigh it.

Finally, make the most of additional benefits. Depending on who your card is with, you may get additional benefits. Travel insurance is a common perk as are AirMiles. But, as with all credit card deals, do not be blinded by attractive perks if the card has high interest charges.