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Charge card accounts need no introduction. Right from a student to an adult everybody uses charge card account in some form or the other. A student may use the credit card account to pay for his bills or for buying his necessities. An adult may use it to pay for his utility bills and other daily requirements. Some people may use the charge card account for extravagant purchases as well. For whatever reason the charge card account may be used, the fact remains that they have become an integral part of our daily lives. With competition increasing in the charge card market and the annual percentage rates falling by the day, many companies are coming out with offers to attract customers. Companies to attract customers are coming out with offers like 0% interest on interest rate or 0% interest on balance transfer. Balance transfer is the transfer of balance or outstanding in one credit card account to another credit card account.

Advantages of balance transfer

It is an efficient tool to manage our finances. People in financial crisis can use it as an effective tool to postpone payment to charge card account companies.

People can also save cash because if they are not able to make payment to credit card account issuer, then they are charged late payment interest and penal charges. With the help of balance transfer such charges can be avoided.

There are certain things that you should bear in mind before you request for balance transfer:

Fees

Most companies today charge a balance transfer fee for transferring any outstanding balance from other charge cards. This could be a flat fee or it could also be a percentage of the amount borrowed. It is very important that we analyze what transfer fee we are paying and what is our actual financial benefit on balance transfer.

Interest Rate on Purchases

Some charge card companies may attract customers by charging no interest on amount transferred. This policy of no interest is usually applicable only on balance transfer and not on purchases made. Any purchases that we make is chargable at normal rates of interest.

Allocation of Funds

When you take a balance transfer find out how the allocation will be made when you make the monthly payment of your credit card account bill. Let me explain the importance of allocation with an example. Suppose you have taken a balance transfer from your charge card company of 500 dollars. You are required to make a monthly payment of 100 dollars towards you balance transfer. You spent 200 dollars on the charge card account on which you have taken a balance transfer. When you receive you statement you find you have 700 dollars (500 dollars form balance transfer + 200 dollars from purchases made) outstanding in your credit card account. You assume that you have to pay 200 dollars towards your purchases and 100 dollars towards your balance transfer outstanding. So you pay 300 dollars to your charge card company. When you receive the credit card bill for next month, you will be surprised to find out that the entire amount you have paid will be adjusted towards your balance transfer, and you will be charged interest and penalty charges on 200 dollars (purchases made by you). Therefore it is very important to understand how the charge card account company will treat any amount paid by you.

Balance transfers are a useful instrument in managing our finances but it is equally important that we understand the terms and conditions of balance transfer.

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Credit cards are considered as one of the most important tools you have in your hand. Even though the benefits of charge card accounts overweigh its disadvantages, if used incorrectly charge cards can lead to huge debt problems. The interest rates of charge card accounts are usually higher than any other type of money you can borrow. Here you need to be very careful while dealing with credit card accounts. Here we can discuss the most common credit card pitfalls which can be avoided by controlling your charge card usage.

Before considering any financial product, especially a charge card, make sure that you have enough income to pay your bills and overheads. If you think you cannot correctly pay monthly bills on your credit card don’t take one by hearing the polished words of a charge card agent.

Most of the credit cards available in today’s financial market are having a high rate of interest. So if only a higher interest credit card account is available to you don’t purchase it as you have to pay large amount of money on your monthly bills. If you own a high interest charge card account use it for small purchases and remember to repay the amount in full before the interest accrues. Timely repayment of your debts will help to increase your credit rating which will enable you to get lower APR on future credit card deals.

While making any purchase with your charge card remember to charge only the amount you can repay in full each month.

Try to keep away from pre-approved charge card offers with low interest rates. These types of interest rates are usually offered for only a short time, mostly when the period is over you have to pay a higher APR. So it is better not to deal with such credit card offers.

If you have huge outstanding balances on your account try to pay off it as early as possible. If you are not paying it correctly you need to pay large amount of interest charges for your outstanding balance. Also, incorrect payment of your debts will make a bad credit history, which eventually thwarts you from getting any future credit.

If you are paying only the required minimum payment each month then it will take much time to clear your balance. That is, if you have a $3000 balance at 15% interest and you are paying 3% on your remaining balance every month, then it will take many years to pay off your debt. And you have to pay huge bucks in interest charges also. Hence it is advisable to pay more amounts each month to pay off your debt.

You can avoid credit card account pitfalls by keeping an eye on all these factors said above. Try to avoid excessive use of your credit card for all your expenses. Also if your use your credit card account for almost all your expenses don’t forget to repay your monthly bills on time. Remember it is all about money so you need to be careful and well aware of your income and expense.

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All over the internet, in television commercials, on the radio, people are hearing about balance transfer charge card accounts. These credit cards allow you to pay off high APR accounts using the low APR funds provided in your credit line. However, just like anything else when it comes to dealing with banks, there are a few things to look out for.

The first thing you want to pay attention to when looking for a good balance transfer credit card account is the intro APR. The vast majority of balance transfer credit cards will come with a very low promotional annual percentage rate. These introductory rates are interest rates that last for a short period of time after being approved for the credit card account. Most balance transfer credit cards will offer a 0% intro interest rate that lasts anywhere from 6 to 12 months, so if the offer you are looking at does not, I’m sure you can find a better offer.

Next, we want to look at the standard annual percentage rate on the account. The standard annual percentage rate is also known as the interest rate for purchases and will become the annual percentage rate on your account once the introductory rate expires. Make sure that the standard annual percentage rate on the new account is not higher than the one on the old account. If it is, this can put you in a worse situation than you were in before the transfer and is not a good idea to move forward.

Finally, be aware of transfer fees. Unfortunately, when it comes to dealing with credit card companys, nothing is free. The vast majority of balance transfer credit card accounts come with transfer fees. In most cases, these transfer fees will be somewhere between 3% and 5% of the total amount of the transfer. Although this may seem like a lot of money, if you choose the right balance transfer credit card for you, this may prove to be a very minute amount that you should be willing to pay. Let’s say you have a credit card that you are currently paying an interest rate of 12.24% on. You have found a balance transfer charge card that is offering 0% for 12 months, a standard interest rate of 11.24%, and has a 5% transfer fee. Although the transfer fee may seem a little stiff, you will still come out ahead. In cases like this one, consider the transfer fee to be your APR for the first 12 months of opening the account. You will still save plenty!

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Lately, consumers have been hearing a great deal about balance transfer charge card accounts. All over the internet, you find articles talking about how you can make money or reduce interest or even get out of debt using these specialized credit cards. But how do they work, where did they come from, and who should use them? I will explain all of this!

Balance transfer credit cards are charge card accounts that allow you to use your available credit to pay off high interest rate credit card accounts. Most balance transfer accounts offer vitally low introductory interest rates. Some even offer 0% promotional annual percentage rates. These charge card accounts were designed as a result of overwhelming competition in the charge card account industry. Banks will just about give up the CEOs first born son to take your business from another bank.

Although, balance transfer charge cards are great, not everyone will qualify for these types of accounts. To be approved for most balance transfer credit card accounts, you must have good to excellent credit. If you do have a pretty good credit score, you may want to look into these accounts for a few reasons.

The first reason to get a balance transfer charge card account is to reduce interest rates on outstanding debts. The reason most people have a hard time getting out of debt is the amount of money that goes towards finance charges generated by charge card account APRs. As I stated above, most balance transfer credit card accounts come with low introductory interest rates even as low as 0 percent. Simply find a balance transfer card that you feel you’ll qualify for based on your FICO rating and apply. When you are approved, transfer the available funds to your high interest rate account.

The next reason to get a balance transfer credit card account is to get out of debt. This works the same way as reducing interest using these balance transfer accounts. Use these cards to pay off high interest rate accounts. Your minimum payment will go down because your interest rate has gone down. However, just because the minimum payment is lower, that doesn’t mean that amount is all you should send. Send more than your minimum payment to get out of debt faster!

Finally, various people have heard about making money with balance transfer charge cards. Unfortunately, banks have added transfer fees to balance transfer accounts making it harder and harder to make money using these accounts. However, if you can find a balance transfer charge card account that offers a 0% promo annual percentage rate and no transfer fee, you extremely well could make money using the card. All you need to do is transfer your available credit to an interest baring savings account. Pay the card off using that same account right before the intro APR expires. The money left in the savings account from the interest gained is your profit!

This article is brought to you by www.JemCreditCards.com – Not just credit cards, we create financial stability! Compare the best credit cards including Discover balance transfer credit cards, Chase balance transfer cards, and much, much more! Also, enjoy our various articles about credit cards, debt relief, and a financially free lifestyle. If you have a finance based question, feel free to ask a financial expert using the form at the bottom of each article!

Looking for a way to reduce your monthly expenses and free up some cash? Transferring a credit card balance to a plastic with 0% or at least low interest rates can help. It is an excellent way to pay off your remaining debt sooner and save hundreds of dollars on interest charges. However, before you rush off to look for the most suitable balance transfer charge card account, consider our tips. Although the concept of a balance transfer seems simple enough, there are some hidden pitfalls that you need to know about. Ignorance could turn out to be a very costly mistake.

1. Before you submit an application, check your credit history. Do you have a consistent record of timely credit card payments and a reasonable number of open credit lines? In order to get approved for a balance transfer credit card account with 0% APR, you are required to have a good or excellent FICO score. Otherwise, lenders may offer you a higher interest rate than you expected.

2. Analyze your current financial situation. If you have a debt of $20,000 distributed on several high APR plastics, it is highly unlikely that you can move the whole amount onto a single charge card. Many lenders allow transferring only a portion of such a debt, for example $5,000. Consider it as a first step to a debt-free future.

3. Beware of the balance transfer fee. Typically, it is the percent of the amount you are going to move – from 1% to 3%. While this may not sound like much initially, it can be a significant amount if you have a large balance. Fortunately, many banks cap the balance transfer fee at $50 or $85. Read the fine print to understand the actual costs you will need to pay.

4. Typically, it is not allowed to make balance transfers on the plastics from the same issuer. So, if you have a debt on, for example, Hilton HHonors Platinum credit card from American Express, then you can’t move your balance on another American Express plastic. But you can always search for the credit card offers from other banks, for example Chase or Capital One.

5. Pay attention to the interest rates on purchases and cash advances because many plastics come with a zero or low APR on balance transfers only. For example, you can find offers with a 0% annual percentage rate on balance transfers and a 12-16% APR on purchases and cash advances.

6. Don’t forget about negative payment hierarchy. It means that your charge card payments will be first applied to the transferred amount because it has lower rates. For example, if you transfer $5,000 and then spend $50 for a nice dress, all your payments will go towards the $5,000 until it’s paid off. Meanwhile, the $50 accumulates the regular interest rate. If you need several years to pay off the balance transfer, your cash advances and purchases may accumulate much interest.

7. Shop around for the best credit card terms and features. Zero introductory rates are very tempting, but don’t turn a blind eye to other charge card features. Compare all fees, APRs, payment policies and point or cash back rewards programs of the plastics you want to apply for. And be realistic about how quickly you’ll be paying down your debt. If your budget doesn’t allow you to repay the balance before the introductory rates expire, check what APR you will need to pay afterwards.

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Many Americans have found themselves with overwhelming charge card account debt. Interest rates have been on an increase as well as unemployment rates. People have been looking for the best ways to relieve themselves of credit card debt without harming their FICO ratings. What the majority of consumers have found is that balance transfer credit card accounts are offering great ways to become debt free. With extremely low introductory APRs, balance transfer charge card accounts are becoming the charge card account of choice. There are a few things to consider when looking for a balance transfer card, these things may make or break the deal for you.

Introductory Interest Rates

Most balance transfer credit card accounts come with a very low introductory interest rate. In most cases, these APRs are zero percent for a short period of time usually ranging from 6 to 12 months. Make sure when you are looking for a balance transfer credit card that you find one that offers a competitive introductory interest rate that will offer you the chance to really make a dent in your debt.

Standard Interest Rates

Although the introductory interest rate that comes with balance transfer credit cards is a great thing, don’t let this factor make the decision for you. Introductory annual percentage rates only last for a short period of time. After that, your debt will be increased to the standard APR. Make sure that when you are looking for the best balance transfer credit card for you, you pay very close attention to the standard APR on that credit card. If you move a balance based only on the introductory APR, and you are unable to pay the balance in full within the introductory period, you may be in for a rude awakening when it is time for the introductory period to end. It’s always a best practice to make sure the standard APR on the balance transfer charge card account that you use is lower than the standard annual percentage rate on the credit card account that you currently have debt on.

Balance Transfer Fees

Most balance transfer charge cards will offer to take on the debt that you have accumulated with another financial institution at a small fee. These fees are balance transfer fees. In most cases balance transfer charges range from 3 to 5 percent of the overall transaction. Although this may seem like a lot of funds, don’t let this be the deciding factor. Take all factors into effect. For example lets say you have a charge card with a balance of $5,000.00 and it has a 17.99% APR. Transferring this balance to a balance transfer charge card that offers 0% for 12 months and a standard APR of 11.24% with a transfer fee of 5% is still going to be a great deal for you!

Although, balance transfer credit card accounts are a great thing for consumers with overwhelming credit card debt, it is always important to use charge card accounts responsibly. Using credit card accounts improperly can detrimentally effect your families financial stability in the future!

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There are a lot of benefits a consumer could get from balance transfer charge card accounts. One of these is the fact that they have the chance to improve their credit scores. Having the balance from old charge card transferred to a new one would create the impression that you are able to settle your account. Your credit history will show that you have paid off old accounts and you are responsible enough to be worthy of another credit opportunity. It is indeed advantageous for anyone to opt for balance transfers as it promotes long-term benefit. The improved credit history will build high FICO scores which are enough bases for judging your worthiness.

Much more, you are given longer grace periods to settle accounts as compared to your old issuer. You don’t have to struggle and double your work without resting and relaxing just to make it to due date. The new card issuer will definitely provide you with extended duration of payment. The better option is to stop incurring large amounts of credits to the new card in order to get out of debt.
Balance transfers are also offered at lower interest rates. Aside from longer duration for you to settle the amount, you are also charged of interest much affordable than the old one. This is an excellent chance for those having financial problems to get through the huge pile of debts haunting them. This is also an opportunity to settle small amounts of debts in numerous charge cards. Debt consolidation at lower charges is a real good opportunity for any consumer.

Most borrowers are forced to engage in additional jobs just to earn more to pay off high annual percentage rates. With charge card accounts that offer balance transfers, there is no more need to exert extra sweat just to keep up with interest charges. It is best to understand that APRs are what really pulling consumers down the drain.

Balance transfers are aids for those who want to get out of debt. But it will not totally solve the problem if the consumer does not know what to prioritize. The credit card account is a refuge in case of emergencies and not a tool to live a luxurious life which is in reality, not within your reach. Balance transfers are options for better financial condition but everything lies in the hand of consumers who are responsible for whatever they have financially incurred.

Finally, when utilizing credit cards, it is important to remember to always use credit cards responsibly. Over use and abuse of credit cards can harm your overall financial situation!

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All credit cards have charges. In fact, the key to becoming a savvy charge card account user lies in understanding what they are and how to avoid them.

So, to help get you started on the right path, here are the most common charge card fees every cardholder should know and understand.

1.) Annual Fee

This fee is charged to your charge card account each year for the convenience of having the card. And while they can sometimes be more than $400, the vast majority of yearly fees fall under $100.

Don’t be surprised if you receive notice from your credit issuer that your favorite no yearly charge credit card will soon move to an yearly charge structure. These fees seem to be making a strong comeback since the CARD Act of 2009 was passed. Of course, that doesn’t mean you have to just give in and pay up. Be sure to give your charge card account company a call and ask them to waive the fee. And when you do, don’t forget to tout your years of loyalty and all the “other” places you could easily take your business.

2.) Balance Transfer Fee

If you want to transfer an existing balance to your charge card account, you’re most likely going to pay a balance transfer fee. Currently ranging between 1-5 percent of the total amount transferred, these fees are a one-time charge per completed transfer.

However, not all cards are plagued with balance transfer charges. Check out the Capital One No Hassle Cash Rewards credit card for a good alternative that boasts no yearly fee to boot!

3.) Late Payment Fee

Pay your charge card bill late, or pay less than the minimum payment amount (or both at the same time), and you’ll most certainly get slapped with a hefty late charge.

Often as high as $39, late payment fees are fairly easy to avoid by keeping the golden rule of credit cards—always pay your charge card account bill in full and on time!

4.) Over-the-limit Fee

This charge could be as high as $39 and is levied when your balance exceeds your total credit limit.

The CARD Act of 2009 requires that credit issuers give you the right to opt-in to these charges now, so they can no longer charge you without your previous consent. Instead, they would have to decline your purchase at the point of sale, which is actually a much better option for consumers. So remember to opt-out of opting-in and save yourself the headache of possibly dealing with over-the-limit charges.

5.) Return Check Fee

This charge is charged when your payment bounces. The amount varies, but it could also be as high as $39.

To avoid this, always make sure you’ve balanced your checking account and have enough money to pay your bill before you cut the check or hit the “submit payment” button.

6.) Foreign Transaction Fee

A foreign transaction charge, which is usually an additional charge of three percent, is applied to every purchase made overseas. If you travel a lot, then you should already be more than familiar with these charges. They can add up fast!

Save yourself some cash the next time you travel and make sure you have a Capital One charge card account in your wallet. They are one of the few credit issuers left that continue to offer no annual fee credit card accounts without foreign transaction fees.

7.) Minimum Finance Charge

You will be charged a minimum finance charge if you carry a balance on your credit card account and the calculated amount of your finance charge is less than the minimum amount allowed. It’s generally not a lot of money, but they’re annoying fees nonetheless.

Avoid these little buggers by always paying your charge card account balances in full and on time.

8.) Paper Statement Fee

It sounds absurd, but many credit issuers are starting to charge customers money to receive paper copies of their statements. Bank of America, for example, has begun charging $9 to certain customers for this service.

Save some trees and avoid this ridiculous fee by simply opting out of paper statements as soon as you open any charge card account account.

9.) Setup Fee

If you’ve never had to use a secured credit card to rebuild your credit, then you’ve probably never heard of a setup fee. That’s a good thing, because nobody wants to pay a one-time fee of up to $100 just so a credit issuer will setup their account! Unfortunately, if a secured credit card account is the only type of card you can qualify for, enduring a setup charge might be a necessary expense in order to get some credit and start building a positive payment history again.

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If you’re looking to reduce credit card account debt, a no charge 0% APR balance transfer is an excellent way to save substantial amounts in monthly interest payments. In this article we’ll discuss what 0% APR balance transfer cards are, how you can benefit from many 0% APR balance transfer offers, what to watch out for when you choose a 0% APR balance transfer credit card and a few tips and tricks on finding the best way to complete a 0% APR balance transfer. By the end of this article you will have learned everything you need to find the best 0% APR balance transfer card for you.

What is a 0% APR Balance Transfer Card?

You have probably seen many of these types of offers in your mailbox. Credit card companies try to earn business by offering low, or in many cases 0%, introductory APRs when new customers transfer a balance. The charge card company hopes to gain a customer and after a few months, when the interest rate returns to a higher rate, they also hope to gain the interest payments. For the customer, a 0% APR balance transfer card can mean a few months of zero interest payments.

Benefits of 0% Balance Transfers

A 0% APR balance transfer can save borrowers hundreds of dollars of interest over a 6 month intro period. As an example, if you have a $10,000 balance and are paying 24%, a 0% balance transfer will save you roughly $1200 in interest over 6 months. The savings opportunities these types of offers provide cannot be denied.

Another benefit these cards provide is the opportunity to make some real progress paying off your card. Use the money you are saving in interest to pay down the balance on your card. If your old payment was $250 and your new payment is $175, use that $75 difference to pay down your principle. You’ll be surprised at how much progress you can make toward reducing your debt in just a few months.

Many Visa 0% APR balance transfer offers are for larger credit lines which would allow you to consolidate debt. By combining several charge card balances onto one account, you dramatically lower your total minimum monthly payments. You can either use the savings to help ease your cash flow each month, or as suggested above, use the difference to pay down the principle amount.

Pitfalls of 0% APR Balance Transfer Cards

While most 0% card deals offer a tremendous interest savings, there are a few things a savvy consumer needs to be aware of before submitting an application. The first are the fees that are involved and the second is the time limit on the 0% offer.

Most 0% APR balance transfer cards have either an annual charge associated with the card, or a balance transfer fee. Annual charges typically range between $30 – $100 and are charged to the card when the account is open and then again every year on the anniversary date.

Balance transfer fees are a % of the amount transferred and are an average of 3%. On a $20,000 balance transfer that means you will pay a $600 fee up front to complete the transaction.

The biggest drawback of a 0% APR balance transfer may end up being the adjusted annual percentage rate. 0% balance transfer programs have a time limit. Usually the borrower has 3 to 6 months at 0% interest and then the annual percentage rate returns to the standard % rate. Read the fine print carefully. Some credit card companies classify balance transfers as cash advances and will put your balance transfer at a higher interest rate than regular purchases. This can be hard to see with most offers, because they are usually worded in a way that sounds like the regular annual percentage rate is low. Be wary of offers like “0% APR Balance Transfer for 6 months with 9% APR on purchases”. This sounds like your APR on your balance transfer will be 9% after the 6 months, but really only new purchases will be 9% and your transfer APR could wind up at 24%.

Getting the Most from Balance Transfers with 0% APR

There are a few tips and tricks you can take advantage of to get the most from a 0% APR balance transfer.

1. Know the fees up front. Determine if the 0% interest rate will save you enough money over the intro period to cover the balance transfer fee.

2. Negotiate the balance transfer and/or annual charge. With balance transfer offers it can make sense to call the card company instead of applying online. By talking to a credit card company representative you may be able to lower the balance transfer fee, annual fee or both. You can’t get what you don’t ask for.

3. Set a reminder warning you 30 days in advance that the intro rate is about to end. You can either do another 0% APR balance transfer to another card, or you can pay off the card before you begin to accrue interest.

4. Use the 0% APR balance transfer to pay off your highest rate credit card accounts. Make sure that you transfer the balances that you are paying the highest interest rates on for maximum savings.

Conclusion

0% APR balance transfer programs offer a lot of benefits. From substantial savings to debt consolidation, most people can improve their cash flow by taking advantage of these offers. While consumers can save a great deal of interest by taking advantage of 0% APR balance transfer offers, these programs are not without their downsides. Make sure you investigate the balance transfer and annual fees before submitting your application – often these fees can be negotiated down or even eliminated. Also, be sure that you understand what the APR will be when the introductory period expires and set a reminder well before that date so you can reevaluate your situation. With the information in this article you should be able to find the best 0% APR balance transfer offer available.

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Consumers are quickly losing low-rate options for refinancing loans like charge card account debt. The credit crisis has almost eliminated home equity loans with cheaper APRs, and recent philosophical changes in the credit card account industry have reduced the offers for transferring debt to cards with lower rates.

Until recently, credit card account balance transfers were a part of aggressive competition by charge card account companies to attract consumers with credit card balances from other issuers. However, Chase recently announced that it is lowering its emphasis on balance transfers and teaser rates.

0% for 12 months offers may become a passing fad as charge card account issuers focus on more effective ways to increase cardholder usage with the cardholders they have. If you have considered transferring your balance to a card with a 0% intro rate for 12 months, now is the time to act because these offers are shrinking or becoming harder to get. Consumers should compare offers from several different charge card accounts to secure the best deal.

Transferring your credit card balance from a high rate charge card to a lower rate card can lead to significant savings. For example, paying the minimum required (which averages 2.5% of the balance) on a $5,000 balance with a 14% APR will take 20 years to pay off and will cost $4,167 in interest. Transferring that same balance to a card like the Blue from American Express with a 4.99% fixed rate for the life of that balance will make a huge difference. Assuming you pay the minimum payment, it will take 13.67 years to pay off and cost $958 in interest. That is a difference of 6 years of payments and $3209 from the higher rate charge card. The best advice is to pay more than the minimum payment and get the debt taken care of as soon as possible, but for consumers who can not do that then the balance transfer provides a great option.

Here are seven tips for credit card balance transfers:

1. Know how much you can pay towards your balance each month and how long it will take to pay it off; then find the card that fits your time frame for paying off your balance. The 0% intro rate for most cards is 6-12 months. These are a good choice if you can pay off your balance during this period with the lowest rate. However, be aware that the rate after this introductory period may be higher than average. If it will take over a year to pay off your balance, look for a card that may offer a slightly higher rate for balance transfers, but the rate is fixed for the life your balance. For example, Blue from American Express offers 4.99% fixed rate for the life of the balance transfer submitted with the application.

2. The low rate is only for the amount you transferred. Unless the offer includes purchases, any purchase made with the new card will be at the much higher rate. In an unfair but clever trick by issuers, your monthly payments will be used first to pay off the balance that you transferred with the lowest rate. New purchases with the higher rate will accrue finance charges until the low-interest balances are paid off. Knowing how your payment is processed is a good way to control your charge card account use. If it takes 12 months to pay off the transferred balance, then you are going to pay a much higher annual percentage rate on any new purchases made with the card. If you think you are going to also make purchases with the card, look for one that also offers 0% on purchases for 12 months. You don’t want to be caught by this and pay 14% interest on a $40 meal or a tank of gas.

3. If you have a low credit score, you may not get the advertised intro rate. Read the terms and conditions before applying for the card. For example, Chase Platinum Visa reduces the intro rate period from 12 to 3 months for those who fall into its standard rate tier. If the offer you receive will not help your situation, cancel your application; do not keep the card. Improve your credit score, and try again in a year. If you have a good payment history with your current card, contact them to ask for a lower rate.

4. Know the fees before you transfer your balance. Fees are now at least 3% of the amount of the balance transferred and some cards do not put a cap on these fees. Always factor in the fee when comparing intro rates, because a high fee can taint the offer. For example, if you transfer a balance of $5,000 from a card with 18% to lower rate of 14%, you will save $200 the first year, but the fee for the balance transfer fee could cost you $150. The fees are charged per balance transfer; if you transfer balances from two cards, you will pay two fees. Also, avoid cards with an annual fee. There are plenty of good offers that don’t charge an annual fee.

5. The amount that you can transfer to a new card will be determined by your approved credit limit. If your request exceeds the available credit line or the amount approved, the transfer request will be honored up to the amount approved and you will be notified. If the new issuer does not accept the whole balance, you will be stuck with the remainder on your old card. Remember that balance transfer fees will be added to your balance; if you are at your credit limit, these could send you over your limit and add over-the-limit fees. It is a good idea to keep your balance at less than half of your credit limit.

6. Pay on time because the intro offers are good only while you are making your payments on time. If you miss one payment, your rate will jump to the full rate. If you miss two payments, it may jump to the default rate of 25-32%. To help yourself, set up automatic bill payment. Most cards also provide payment alerts to remind you when your payment is due.

7. Know the process. It takes up to six weeks to complete a balance transfer. Continue to pay the minimum payment on the old card until the transfer is complete. You will receive a notice of the balance transfer from the new issuer. You will receive a billing statement with a zero balance from your old charge card company. Keep this in your records. Call or write the issuer of the old account and ask them to note in any statement to the credit bureaus that the account was closed at the customer’s request. Watch for payments to show up as credits on your other charge card account statements. If the credited amount brings the balance down to zero, you may then cancel those accounts. It is up to you to call and cancel the account; transferring a balance doesn’t automatically close your account.

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