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