Dealing With Credit Card Balance Transfers

Many people have enjoyed the benefits of transferring their credit card balances from expensive, high rate cards onto low rate or even interest free balance transfer credit cards over recent years. Balance transfers have become an effective way to avoid paying costly interest charges on credit card balances, and with both 0% credit cards for balance transfers and low rate life of balance transfers available there is something to suit most needs and circumstances.

The idea behind balance transfers is that you save money on the cost of interest, which on standard credit cards can be extremely high. You therefore need to pick the right balance transfer card for your needs based on your repayment habits. You will find two different types of balance transfer credit cards available, and this includes the 0% balance transfer credit card and the life of balance transfer credit card.

Actually transferring your balance is a very simple process. All you will need to do it provide the details of your existing credit card balances and account numbers to your new provider, and your new provider will arrange for those balances to be cleared through your new balance transfer card. Your old balances will then be transferred onto your new card, leaving you with just one convenient credit card balance to deal with, on which you will be charged either no interest or a very low rate of interest. You need to make sure that the credit limit on your balance transfer card is high enough to accommodate the combined total of the balances that you are transferring. You also have limited time within which to transfer your balances, so make sure you check what this is and act within plenty of time.

0% balance transfer credit cards

One type of balance transfer card is the 0% balance transfer card, and with this type of credit card you can transfer the balances from your existing cards and enjoy a specified period of interest free credit, which means that you can effectively clear the balance without being hit by further interest charges – however, you have to clear the balance within the 0% period in order to benefit fully, as otherwise your remaining balance will accrue interest at the lender's standard variable rate.

Most 0% balance transfer credit cards will charge a percentage of the amount being transferred to the card by way of a transfer fee, and this usually varies between 2-3% - this is something that you will need to check when you compare different 0% balance transfer credit cards.

Life of balance transfer credit cards

If you are concerned that you will not be able to clear your transferred balances within a set period then you may fare better with a life of balance transfer credit card. With these cards you transfer the balance in the same way, but rather than getting 0% on your transferred balance you are charged interest. However, the interest rate charged on the transferred balance is way lower than standard rates, and providing you pay at least the minimum amount requested each month you get to enjoy this low rate for the life of the transferred balance.

Joe Kenny writes for the credit card comparison sites, http://www.creditcardstore.co.uk/ and also http://www.comparethem.co.uk/credit-cards/

How To Improve Your FICO Score

Your credit score is based on information about you from companies that gave you credit in the past. They report on your payment history to the credit reporting bureaus, who then develop a numerical credit score. It's often called a FICO score after the Fair Isaac Corporation.

Your FICO scores determines how high an interest rate you'll pay on your loans, credit card balances, and home mortgage. The higher the FICO score, the lower the loan rate. FICO scores range from 300 to a perfect 850. Anything under 700 is in need of improvement. In this article you'll learn some common sense tips for improving your FICO score.

Pay your bills on time.

It's amazing how many people understand this simple concept, yet they still suffer from a few "late-pays" every year. The solution may be as simple as establishing a prominent location for filing your bills to be paid. That way you'll never "discover" an unpaid bill hiding under your car seat or in the pile of magazines.

Here's an insider tip: The older the late-pay, the less damaging it is to your FICO score. So target your new late-pays by calling the creditor, telling them you are making an immediate payment, and you'll be surprised how many will drop the late-pay fee as a matter of good business. Any late payments you make will lower your score, but establishing a good track record of making payments on time will raise your score.

Get a copy of your credit report.

You are due a free copy of your credit report every 12 months from each of the three major consumer credit reporting companies. The three companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report. To order, visit annualcreditreport.com, call 1-877-322-8228, or complete a request form and mail it to:

Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, but if you order the reports one at a time every four months you'll have a picture of your credit over the course of the year.

The whole purpose of getting your credit reports is to look for any inaccurate information in your credit reports and then work with the credit bureaus to remove that data.

Keep low balances on credit cards, but don't pay them off.

Credit card companies want you to run a balance on your account; after all they make their money on your interest payments. So, don't pay off the entire balance each month. Leave a relatively low balance to demonstrate to new potential lenders that you can handle credit in a responsible way. Your FICO score will thank you for it.

Increase your line of credit, but don't open credit cards you don't need.

Your line of credit is the sum of all the credit limits on your accounts. A high credit limit helps raise your FICO score. If you have a good track record with a credit card company, you can call them, and ask for a higher credit limit. But don't open a lot of new credit cards just to raise your credit limit. New accounts will lower your "average account age", which will actually lower your FICO score.

These are just a few of the common ways to raise your FICO score. There's no better time than right now to get started, since the process is not instantaneous. It takes time to earn a better credit score, but the rewards in lower interest rates make the process well worth it.

To learn the inside secrets to fixing your credit fast, visit the author's website at: http://credit-secrets-bible-online.com