| Are you staring at that attractive | | | | C's higher rate lasts for a year and the |
| advertisement for switching credit card | | | | interest rate after that is 18%, the same as |
| companies by transferring your balance from | | | | yours on credit card A. |
| one card to another? While many of these | | | | |
| offers are truly great deals, balance | | | | In other words, you have to factor in a lot |
| transfers and card-switching is not something | | | | of variables when making the decision to |
| to jump into, eager as you may be. You need | | | | switch your balance from one credit card to |
| to do your homework first: Do enough research | | | | another. Besides comparing the introductory |
| and investigating in order to determine | | | | rates being offered, the length of the offer |
| whether it in fact is worth it or a good idea | | | | and what the regular interest rate is, you'll |
| to make the transfer. | | | | also need to take into account balance |
| | | | transfer fees, annual fees, late fees and |
| First, find out if it is in fact worth it. | | | | other fees, as well as whether the teaser |
| Generally speaking, these attractive | | | | rate applies to balance transfers only or |
| advertisements and super credit card deals | | | | also purchases, among other considerations. |
| advertise very low introductory rates if you | | | | |
| transfer your current balance from an | | | | Something else to keep in mind is that you |
| existing credit card onto this new one. You | | | | may not actually qualify for the special rate |
| can stumble upon these offers | | | | being offered, depending on your credit |
| anywhere-online, in the mail, on a flyer or | | | | history and credit rating. Before you make |
| via a telephone call from credit card company | | | | the big plunge, make sure you know exactly |
| salespersons-and you need to determine how | | | | what you, yourself, will be getting. There |
| great these deals really are, or if you'll | | | | may also be other conditions. For example, |
| just end up paying much more in fees and | | | | some credit card companies may penalize you |
| interest in the long run. | | | | for one late payment and take you off the |
| | | | introductory rate onto their regular rate, |
| Read the fine print. Read everything. Read it | | | | which may be higher than your current card's |
| through several times so that you make sure | | | | rate. |
| you understand what it is saying. It may | | | | |
| appear to be a bunch of financial jargon that | | | | However, many credit cards with these |
| you might not think is very important, but | | | | introductory rates offer great deals for |
| the truth is, this information is valuable | | | | people interested in switching credit cards |
| and critical to your decision in whether or | | | | and transferring their balance over and can |
| not you make the big switch. Call the credit | | | | be more than worth it. The important thing is |
| card company and ask any questions you might | | | | to do your research, read the fine print and |
| have. If the deal is solid and they want to | | | | ask questions to determine which credit card |
| make a sale, generally they should be able to | | | | and deal is the right one for you. |
| help you out in any way. | | | | |
| | | | Once you've selected the right credit card |
| What do you need to find out about the deal? | | | | offer, the next step is to fill out the |
| Here is an example. Let's say that the | | | | balance transfer application form completely |
| advertised introductory rate is 6% (a low | | | | and accurately. Next, make the minimum |
| rate) on credit card B if you transfer your | | | | payment on your original credit card while |
| balance from credit card A, where you | | | | you wait for the balance transfer to go |
| currently rack up an APR of 18% (a standard | | | | through. When it has gone through, the new |
| rate). You come across another offer, | | | | company should send you a notice, after which |
| showcasing credit card C with an introductory | | | | you'll need to verify the transfer with your |
| rate of 9%. At first glance you may think, | | | | old company so they can send you a |
| "Well, let's go with credit card B-it's the | | | | zero-balanced billing statement. Finally, |
| obvious choice here." However, after reading | | | | cancel your old card since you don't need it |
| the fine print, you discover credit card B's | | | | anymore-it will also save you some |
| special rate only last six months, and | | | | temptation. |
| afterward the APR is 20%, whereas credit card | | | | |