Having multiple credit cards can end up being both somewhat of a blessing and somewhat of a curse. In most cases, it ends up that the cards with the highest interest rates are the ones that carry the largest balances while the ones with the lowest interest rates are the ones that go unused much of the time. Luckily, many cards allow for the balance of one to be transferred to and from other cards to make keeping your finances under control much easier than it might seem at first.

The information provided below should help you to learn more about the process of transferring balances from one card to another and assist you in making the decision as to whether or not you should transfer your balances.

Defining Balance Transfers

Balance transfers are simply the movement of all or part of the balance of one credit card to another, usually from a card with a higher interest rate or a card that is near the credit limit to one that has a lower interest rate or that is nearly or completely paid off. This allows you to avoid going over credit limits, gives cards that have been used a lot a little more use before having to begin paying down the balance, and helps you to avoid paying the higher interest rates on older cards.

How Balances are Transferred

The actual act of transferring a balance is relatively simple? the amount that is being transferred is charged to the card that the balance is being transferred to, and the corresponding amount is credited to the card that the balance is being transferred from. Some cards allow a transfer to be credited as a payment, whereas others do not? make sure that you know whether your cards allow this or not before assuming that the transfer will count as the payment that is due on your card.

The Best Time to Transfer Balances

Often the best time to transfer balances from one card to another is before the next month’s balance and payment has been figured, because the lower the balance that you carry on higher-interest cards then the less interest will be charged to the card as a result. Transferring balances during promotional interest periods can also be good, allowing you to pay a much lower interest rate on the transferred balance and giving you more time to pay down the balance before the greater interest rate comes into effect.

Saving Money with Balance Transfers

One of the main advantages of balance transfers is that you can often save quite a bit of money when transferring the balances to a card with a lower interest rate. Balance transfers can help you to avoid fines associated with going over your credit limit, and by using a bit of common sense you should be able to keep your credit card debts under control and transfer the appropriate balances to enable to pay off your outstanding balances more quickly and for the lowest interest rates possible.

Balance Transfers with New Cards

When applying for a new credit card, many cards will allow you to transfer the balance from older cards as a part of the application process. This can be especially useful when done with cards that offer a low fixed rate for an introductory period, because you should be able to make quite a bit of headway in paying off the older balances at the much lower rate. Use caution, however, or you may end up with a new card that’s mostly full when it reverts to its standard rate.

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Typically, when one approaches the register at a department or retail store, they will be given the opportunity to apply instantly for a store issued credit card. The pitch is that upon approval, the customer will receive 10% off of their current purchase using their new card. Everyone enjoys savings, so many people bite immediately at this offer. The problem is that this enticing, one-time savings, blocks the better judgement of the consumer. Few people ask for information regarding the introductory APR on the card. If they do, the salesperson rarely knows. Usually, APR’s on store issued credit cards starts at 21.99-23.99%. This APR is reserved for people with good credit. Introductory APR’s on store credit cards may start as high as 28.99%!

This is how the store benefits. They issue a card immediately without having to spend any money on advertising to gain an applicant. They immediately attain a balance on the card which has a high APR. They also get the consumer to return back to the store because they are carriers of their card. Plus, these cards may be used to make online purchases or catalog purchases over the phone. Their only loss is 10% of a purchase that they will more than double from each consumer over time.

Let’s say that you are a responsible individual. You want the 10% savings, so you figure that you’ll use the card, immediately pay the balance in full, and never use the card again. This seems like a legitimate thing to do, but it has a few flaws. You benefit from paying the balance off immediately because you’ve just saved 10%. True for the short term. Longterm, you may run into problems. It would be unwise to cancel this card directly after paying off the balance because it would show up as a closed account on your credit report.

Closed accounts on credit reports are viewed as negative by lenders. So now you’re stuck carrying a credit card that you won’t use because the APR is too high and it doesn’t come with any long-term rewards program. You will probably receive periodic credit limit increases over 9-month terms, especially if the lender sees that the account has a zero balance and no delinquent payment history. Each credit increase will directly affect your potential debt. Thus, potentially impeding your potential for credit card approval on cards that you will actually use. Is this worth the initial 10% that you saved?

If you want to save money on purchases, there are much better alternatives than store issued credit cards. One option is applying for a cashback credit card. These cards are issued by major issuing banks and typically come with low APR’s on purchases and balance transfers. Recently, Chase Manhattan Bank has replaced their Chase Cashbuilder card with the Chase Cash Plus Rewards Visa. This card has an intro 0% APR on transfers/purchases, no fee, and a 12.99% variable APR thereafter. You may earn up to 5% cashback on purchases or choose from a variety of different rewards, such as travel and merchandise. Savings using this card or other similar offers wisely, are much more lucrative than those of a one-time 10% savings on a purchase.

There are other specific rewards programs available. Chase also issues Disney, Starbucks, Borders Books & Music, and Avon Visas. Citi issues a Home Rebate Mastercard featuring mortgage savings and a Upromise Mastercard featuring future savings on college tution. All of these come with lower APR’s than store issued credit cards.

Another thing to be wary of are gas rewards cards issued directly from gasoline merchants. These credit cards typically come with high APR’s similar to those of department store and retail issued credit cards. If you are interested in saving money on gas, many banks now feature gas rewards cards. Chase currently offers Hess Visa and the Chase PerfectCard (which provides cashback on gas purchases), while Citi has just launched their Shell Mastercard. Applying for these cards from banks rather than merchants will provide you with greater savings and lower APR’s.

Be wary of signing-up for any merchant issued credit card. Read the find print and ask as many questions as possible before enlisting. These decisions may affect both you and your credit longer than you may think.

? Credit Card Outlet

Russ Nauta is a senior staff writer and investigator for Credit Card Outlet.

Credit Card Outlet has been a leading consumer credit card information portal since 2004.

This article may be reprinted with a live link back to http://www.credit-card-outlet.com

Did you know that credit card companies don’t want you to pay off your credit card debt? Why would they? The more credit card debt you have, the more interest you pay to them. And interest is their lifeblood.

Credit card companies have helped to foster our acceptance of debt as part of our lifestyle. We keep spending more than we make by about 10% each month and keep adding to our debt. As those credit card balances keep growing month after month, so too do those minimum monthly payments. There will come a time when we will not be able to afford even those minimum payments. Many people have already reached and surpassed that point.

We have fallen into the credit card trap where we get sucked into the convenience of it all, easily put off payments, and overspend. Have you compared your monthly income to your monthly credit card limit? Pretty remarkable how much larger your card limit is. We use credit cards for just about everything and we have maxed out. The convenience has lulled us into the credit card trap.

So how do you break the cycle? It’s all about changing your attitude towards credit card debt. Here are 6 techniques you can use to turn the table in your favor and allow you to break free of credit card debt.

1. Treat your credit card spending as a loan. Most people don?t see their credit card debt as a loan. It really is just that. You borrow money and it has to be repaid. It?s all about an attitude change.

2. Always watch your balance. Instead of looking at your credit card limit, look at your monthly earnings. Always make sure your credit card balance doesn?t grow beyond what you can afford for the month.

3. Keep all your purchase receipts. Costly errors can be fixed quickly if you have the receipts. Also, they help you visualize how much you are spending. Put the receipts some place where you’ll see them everyday. As the pile grows, you can see your debt grow.

4. Pay off your whole balance on time each month. This is the best way to break free of credit card debt. You don?t pay interest and there are no late penalties. Over time, the savings can be huge.

If you’re struggling to pay off your credit cards, there are many different options that can help ? for example, you can consolidate credit card debt or get credit counseling. They can make it easier to get a grip on your monthly payments.

5. Treat your credit cards as emergency cards. Don’t take them shopping. Use cash or debit cards. If you use cash or a debit card, you can drain your bank account until it’s empty but at least you can’t spend any more. Amazing how in our society, we aren’t comfortable about having our bank account balance go to zero but we’ll let our credit card debt grow which, in effect, is taking our bank account ?below? zero.

6. Keep your lowest interest rate credit card and cut up the rest. If you don?t have them, they can?t help you add to your debt.

The credit card companies have you right where they want you ? carrying high balances and paying lots of interest. However, by changing your attitude towards credit card debt and using these 6 techniques you can break free.

Thomas Erikson is co-founder of Your-Debt-Consolidation-Loan.com which provides credit card debt information and solutions

In the United Kingdom, the credit card phenomenon is not at all different from what the United States or any other country has for that matter. This just goes to show that a lot of people are finding credit cards as feasible means as well.

However, most people in UK would rather obtain the best credit card there is than to suffer at a later stage. And so, getting the best UK credit card is very significant for most English people. In most instances, the best credit cards would usually mean low interest rates, offers rewards, and excellent introductory rates.

But then, it is really important for every UK consumer to shop around for the best credit card deal.

And so, here are some of the best UK credit cards:

1. Virgin credit cards

The very best feature of Virgin credit card is that it allows their consumers to prefer which features they would want to have on their credit cards. That means they could have the chance of getting a 0% balance transfer rate for 9 months, a fixed annual percentage rate of 15.9%, plus more rewards every time the credit card holder uses the card.

What?s more, people get to choose their very own creative Virgin card motif making it way above the rest.

Virgin credit card also offers great flexibility.

2. The Marbles credit card

This UK credit card is considered nowadays as the card with the best value and has a high orientation on customer service. They have a 24 hour customer service hotline. Plus, they also provide a regular monthly statement through online announcements.

It also has 0% stable balance transfer rate for 6 months from the start the account has been opened.

3. Morgan Stanley Credit Card

This is considered as one of the best UK credit cards because it has 0% introductory rates for balance transfers good for 6 months. It also offers a fixed rate of 14.9%, and their 1% cashback is considered as one of the highest available in the UK market today.

4. The egg credit card

In UK, egg credit card is considered as one of the best credit card in the industry today. It also offers 0% introductory offer not only for balance transfers but also for ordinary purchases, and that is available all through out the 6-month period. Their annual percentage rate is also set to a standard rate of 14.9%.

With all these 0% introductory rates, low APRs, and everything, these credit cards are definitely the best UK credit cards in the market today. Hence, for most UK consumers, shopping had never been this better.

About The Author
David Riewe is a Publisher and Online Marketer. Visit his Credit Resources Blog Below: http://www.push-button-online-income.com/creditcards/

How does a prepaid credit card work?

A prepaid credit card works just like a standard credit card in making every day purchases. You can make a utility payment or online service payment, complete online or auction purchases, rent a car, reserve a hotel room, and pay for dinner all with your prepaid card. Anything you can do with a standard MasterCard or Visa you can do with your prepaid credit card. Online, you will find a number of lenders who offer prepaid MasterCards or Visa cards that look exactly like the regular cards. No store clerk or utility employee will be able to tell the difference.

When you want to apply for a prepaid card, go online and search for offers that appeal to you. Fill out the online application and you will be instructed to set up an account for you card. The account you establish is the money from which you draw each time you make a purchase or a credit card payment. You credit limit is determined by how much money you initially deposit in the account. For instance, deposit five hundred dollars, and you will have five hundred dollars available credit on your card. You can always go back and add to your account balance and have more money on your prepaid credit card. Usually, after a year of good standing, you can qualify for a standard credit card from the same lender.

Drawbacks

While prepaid cards a good idea in theory, they can be expensive to establish. You may be charge a set-up fee of $5 to $50 when you make your opening deposit. Also, an additional fee is charged every time you add more money to your account. When you take these fees into consideration in addition to the money you have to put up to get the card in the first place, the total output of money can be prohibitive to someone on a tight budget.

When you apply for a standard credit card, you can find a deal where you are not charged a set-up fee or an annual fee. However, if you cannot qualify for such a deal, the only option you have to establish a line of credit is the prepaid credit card. Lenders are aware of this and may take advantage of your situation by charging you hidden fees once your account is up and running.

Javier Polanco offers expert advice and great tips regarding all aspects concerning credit cards. Get the information you are seeking now by visiting http://www.obtaineasycredit.com.

Annual Percentage Rate or APR is a yearly rate of interest that includes all of the fees and expenses paid to acquire the loan or credit card. APR can vary anywhere from around 3% right up to 21% and beyond.

APR for Loans:

APR is a standardized expression of the interest rate that applies to a loan or credit card, taking into account at least some of the one-time fees that are applied by the lender. There are several ways to calculate APR, but the process generally includes 3 main steps. Firstly, all one-time costs are added onto the loan amount. Next, the monthly repayment for the loan is calculated based on the loan’s specified interest rate. Finally, the interest rate, that would have to be applied to the full loan amount in order for its repayments to equal the calculated monthly repayment, is calculated.

To see this in action, consider the following simplified example where you borrow $1,000 and there is a loan setup fee of $50, making the total amount borrowed $1m050. If the interest rate is 10% (compounding monthly) and the term of the loan is 12 months, then you will need monthly repayments of $92.32 to pay off the $1,050. However, a for the monthly payment of a 12 month, $1,000 loan to be $92.32 would require an interest rate of 19.32%. So, the APR is 19,32%. If the term of the loan was longer, for example the loan was for 10 years instead of 12 months, then the loan fees would be spread across this period, and the APR would drop significantly.

The aim of using APR is to calculate a total cost of borrowing, and to make the interest understandable to an average consumer, so that they can compare loans to determine the best deal and also understand the loans that they already have.

Unfortunately, despite repeated attempts by regulators to establish a single standard for the calculation of APR, it does not always represent the total cost of borrowing nor does it really create a standard that allows consumers to precisely compare the costs of a loan.

The main issues in the calculation of APR arise because the definition for the calculation of APR does not specify which one-time fees must be included and which can be excluded. For example, should APR take into account fees and commissions that are paid to someone other than the lender ? Should APR include penalties, such as late fees ? As a result, it is partly up to the lender to determine which fees are included (or not) in the calculation of APR.

In addition, APR is also highly dependent on the term of the loan. For example, the APR for a loan with a 25 year duration cannot easily be compared to the APR for another loan with a 15 year duration.

APR for Credit Cards:

For credit cards the APR is a much simpler calculation. Due to the fact that the amount of money borrowed really isn?t known, you can not use the formula that is used for most loans. It?s simply a calculation of what the effective interest rate is for one year when you take into account that the interest is compounded monthly.

The formula for this is apr=(interest/12 1)12. So for a card with a 10% interest rate it would be apr=(0.1%/12)12, which is apr=1.008312, so apr=1.104 or approximated 11%. Really you should never have to calculate this yourself though.

Provided by Creditor Web. Creditor Web empowers consumers to compare and apply for a credit card online.

Credit card rebates are the perfect way for you to get some of the money back that you have spent throughout the year. More and more credit card companies are getting involved with rebate credit cards and reward credit cards because consumers have clearly shown increased interest in the rebate cards that offer the best benefits.

We all love to get something for nothing, but it very rarely happens. However credit card rebates give you that opportunity. If you have an existing credit card then you’re going to use it to make purchases anyway, so why not get a little extra back every time you use your card with these credit card rebates?

The idea of rebate credit cards has been around for quite some time. The concept works on the principal that a percentage of cash is retuned to the cardholder at the end of each year, based on the total amount of card charges. The more times you make a purchase with your card, and the more money you spend, the more money you get back. The percentage of money you get returned when you use your rebate credit cards varies. Some companies will offer excellent deals that give you up to 5% cash back on selected purchases, others offer rates starting at 1% on all purchases. This type of card was introduced primarily to keep the business of cardholders who purchase most of their goods by credit card, and who pay the outstanding balance every month.

Like all other credit cards, it’s prudent to shop around to find a rebate credit card that offers the best deal to suit your circumstances. If you don’t pay off your balance every month then it may not be the card for you, as the APR can be slightly higher than other cards on offer. However, if you are the type of person who does pay their balance off each month, then it’s the kind of card you should consider using. The rebate credit card is a good way to actually get paid for spending.

Many lenders offer credit card rebates in conjunction with other reward schemes. Some give discounts when you purchase selected items, or goods from partner companies. If you use a certain supermarket, gas station, or drug store regularly it would be extremely beneficial to you to get 5% of your cash back on every purchase. Find out which rebate credit card provider offers their rebate at the stores you regularly use. There are websites available online that will let you do a comparison on rebate credit cards, so you can find the best deals suitable for you.

Be sure to be aware of the terms and conditions of your credit card agreement, as some companies do have a limit on the value of rewards and credit card rebates you can claim in one calendar year. On a $300 reward maximum, you can spend $6000 annually on gas or at the supermarket, for example, if your card has a 5% rebate. If your family budget exceeds $6000 dollars why not apply for another card for your spouse. This way you can maximize the amount of money you are able to get back on your rebate credit card.

Some rebate credit cards insist you have a monthly balance remaining to qualify for the rewards. If you don’t carry a balance into the next month then no rebate is accumulated. This type of card doesn’t produce as many benefits. You end up paying interest on your balance, and as the rebate credit card normally has a higher APR, the benefits of the rebate can be negated. It’s important that you look out for this when choosing a new card.

One thing you shouldn’t do is buy goods you don’t need in order to get a rebate. You should also be aware that if you return an item your rebate is deducted. On the whole credit card rebates can be very useful if used correctly, it just depends on your situation.

For more on credit card rebates, Robert Alan recommends that you visit CreditCardAssist.com

Before we start talking about free credit cards, it is necessary to define somewhat what is meant be free in this context. While there are some credit cards out there that will charge you a monthly or annual subscription fee to become one of their customers and receive their credit card, these deals are becoming far less common than they used to be and therefore it is by far the norm now not to have to pay a subscription fee for a credit card. Therefore, a credit card being free in this sense will be assumed.

What I mean by free in the context of this article is interest free, or an APR of 0%. There are a growing number of credit card providers on the UK market that will offer introductory deals for a certain number of months during which you will receive a 0% APR on either a balance transfer, or on your purchases, or sometimes if you are lucky, on both.

These types of cards, while sounding very attractive, are actually not that difficult to find. All you have to do is be willing to search for them. Because of the high degree of competition that exists at the moment among credit card providers in the UK, you will find that excellent 0% deals are in fact quite common. In most cases, unless you either have no income, either because you are unemployed are a student or for some other reason, or unless you have a bad credit history, you will most likely find it quite easy to find credit cards that are offering some sort of 0% deal.

While you may be lucky enough to receive a phone call or a mail in the post offering you a 0% credit card, if you want to find one faster than simply waiting for this, the best place to begin is by searching online. There are literally hundreds of websites out there now that specialise in helping customers find the right credit cards.

To begin your search it is recommended that you visit general credit card websites that will offer you the option of searching through hundreds of credit card deals. These web sites will give the best opportunity to find a 0% credit card offer that suits your needs. Remember to pay attention not only to the fact that any given credit card is 0% but also, make sure you check how long the 0% period will last, whether it applies to purchases, balance transfers or both, and what will be the interest rate that applies after the end of the 0% period.

Just recently 0 per cent credit card deals are becoming a little more complicated. They are still easy to find, however, many of them now come with hidden charges that can sometimes take away the advantage of having the 0 per cent credit card in the first place. Moves taken by credit card companies include:

Reduced credit limit
Reduced interest free period
Balance transfer fee

Once you have found a card that interests you, visit the credit card provider?s website directly to find out more and, if satisfied, apply.

Peter Kenny is a writer for creditcards-gb.co.uk. For additional articles and an extensive resource for everything about credit cards, please visit us at 0% Balance Transfers and Cash Back Credit Cards

If you?re feeling weighed down by the debt on your credit cards and wondering how you?re going to make up enough to pay off the interest, let alone make a dent in that seemingly insurmountable balance, there is a solution to help you pay off your credit card debts without incurring loads of nasty interest charges.

In these days of the consumer society where we?re all out spending like there?s no tomorrow and racking up huge credit card bills, the banks are all desperate to get their teeth into us and take on all that debt (or more importantly for them, interest repayments), so much so in fact that they?re willing to offer you inducements to switch your credit card balance to them.

This marketing ploy by the lenders is designed to give you a short term benefit in the hope that you?ll stay with them and start paying interest (and thus earning them money) long after the initial interest free offer has elapsed. Human nature after all shows this to be true time after time. This, you can use to your advantage.

So let?s say that Bank A is offering a credit card deal with a zero percent on balance transfers for 6 months. OK, so the first question is what does this mean. Simply, it means that in turn for transferring your debt to their bank they?re willing to give you an interest free loan for 6 months to cover your balance. Nice.

So, you can get rid of those nasty interest payments and start concentrating on reducing the card balance for the next 6 months. All good so far, but after 6 months you?ll start paying them the interest and, if you haven?t cleared the balance by then, you?ll be back to square one (albeit with a slightly smaller balance, if you?ve been good).

OK, so what?s so great about that then? All we?ve achieved so far is saving 6 months worth of interest payments and you?re still in debt, back to paying interest and not much better off: Right? Wrong.

Having already benefited from 6 months interest free credit on your card, why not do it again? There are plenty of banks out there all keen to take on your credit card balances so why not just keep on signing up for card after card until you?ve managed to pay off your full balance without paying a penny of interest?

Of course, there?s also the matter of all the plastic that you?ll have floating around having gone through this exercise, and this is where you need a little discipline. Rather than transferring your balance and just leaving that old card in your wallet, tempting you to come out and play, cancel the card once the balance is clear, then shred the plastic.

Follow this simple logic and in a matter of time (depending on the size of your balance and your ability to pay it off), you should be left with no huge debts, only one credit card in your wallet and a feeling of satisfaction that you just managed to get the banks to pay off all your credit card balances without charging you a penny of interest.

Paula Marriss is a financial advisor and editorial contributor at The Money Zone where she writes regular articles on Credit Cards and other Personal Finance topics. To read more please visit http://www.money-zone.net/creditcards/

Everyday, people spend for different purchases either on goods or services. Money is required when you go to a store, a gasoline station, a restaurant, and many more. In all these different situations, running out of cash is probably the last thing that you have in mind. But even so, there are unavoidable circumstances when you do run out of cash; and the situation can be quite embarrassing, especially if you don’t have any credit card.

A credit card allows you to make purchases on credit, as long as the store accepts credit cards. With the card in hand, running out of cash is not much of a problem anymore. That is why many people are finding credit cards quite handy, and there are even those who can’t live without it.

But wait, applying for any credit card that comes your way is a big no-no. Credit card companies often have enticing offers, but don’t be easily fooled. You should be careful in choosing the card company that will definitely suit your needs.

Here are terms that you should be familiar with before filling out any application form.

Annual percentage rate or the interest rate – cards are being charged with an annual interest rate based on your purchases, cash advances, and/or balance transfers. You must know that there are cards which have variable interest rates, while other has fixed rates. Some companies offer low introductory interests to attract customers, after some time, the rate will increase as soon as the introductory period is over.

The grace period is the allotted time given to cardholders in order for them to settle their account in full. After that certain period, finance charges will be credited to the cardholder’s account.

Annual fee – having a credit card is a privilege, and because of this annual fees are charged. If you shop around, you can actually find credit cards which have very low annual fees, and if you’re quite lucky, you might find one which does not charge any annual fee.

Cash advances – compared to regular purchases, interests on cash advances are much higher; you can get cash advances through ATM machines.

Fees on over-limit – credit card holders are provided with credit limits; in case you exceed this limit, a certain amount of fee is charged called over-limit fees. However, this is not a very ideal situation especially if you need to use your card during emergencies.

Balance transfer – if you are not satisfied with your present card, you can take advantage of balance transfers; this allows you to transfer your balance to a new credit card. Many people are attracted to this scheme because of very low interests. Be aware that low interests are offered for several months only, the most is at six months. After that, a much higher rate will be charged. You should first ask the card company about this matter.

Disclosure – you must be aware that there is a federal law which requires credit card companies to disclose all information about the credit card. Be wary of companies who fail to disclose important information about the card because they may be a fraud. This information includes APR; finance charges computations, grace periods, late/annual fees, and many more. As a responsible consumer, you should read all disclosure information to protect yourself from any deceit.

Joe Davis is specializing in research and journalism on credit cards. Looking for a credit card? Find the best credit card from leading banks and instantly apply online.