Low Interest Balance Transfer Cards Are A Good Example

Category: Finance, Credit.

According to statistics in a recent survey, less than half of those who apply for a credit card shop around at all.

Is that any way to find the best credit card deal? They either accept the card offered by their bank or another organisation, or they fall prey to an advert that lands in their post box. The question is rhetorical, obviously- but what s not rhetorical is the need to do a bit of homework before you apply for a card. Some wrong choices jump right out at you. The wrong choice can cost you thousands of pounds over the course of a few years. If you can qualify for a low interest credit card, you d be a plumb fool to apply for one with an APR of 34% . Other times, though, it s not so easy to recognize which to avoid.

Keeping your eye on the average typical interest rates can help you avoid applying for cards that offer outrageously high interest rates. As often as not, it s a matter of using a perfectly good credit card for the wrong purpose. Most people are drawn to these because of the low APR on transferred balances. Low interest balance transfer cards are a good example. They usually carry a higher rate of interest on new charges to your card. That means that until your transferred balance is paid off in full, any new purchases that you put on the card will sit and accumulate interest- on which you ll pay interest.

They also usually apply your payments to the balance transfer first. Bottom line: avoid using a balance transfer credit card to make purchases. Those high APRs are often hidden behind a special offer- pay for your purchase on a store credit card and get no interest for three months, or until the end of the year. Store cards offer some of the highest interest rates of all types of lending. Be careful to read all the fine print on those offers. If it s not, you could find yourself whacked with the entire interest from the date of purchase. It s not unusual for the no interest to be contingent upon having the balance paid in full by the end of the interest free period.

Other things that may invalidate a no interest store card offer include late payment, going over- limit or missing a payment. If you make it a practice to research credit cards before you apply for one, you ll be able to spot which ones to avoid on your own. Bottom line: Avoid using a store credit card unless you use it for a special promotion- and abide by all of the stated terms. Comparison sites make it easy to compare credit cards and find the best deal- and the ones to avoid.

Read more...

For Starters, Consider The Need To Get Approved For A Loan - Susie Dedios about Finance and Credit:

A car purchase has to be clubbed with the bigger investments of life. Getting a car loan may be easier than getting a mortgage, but it still involves a certain amount of running around and maybe a large pile of documents.

So, We Have To Fill Up With Gasoline - Finance and Credit Articles:

Gasoline credit cards have become very popular in recent years. If you want to save money like many Americans, you may get credit card deals to save a lot on gas.

Never Avail More Than One Student Credit Card - Finance and Credit Blog:

The foundations of building a debt free society is in the generation next.