Question about credit cards, interests and balance transfers..PLEASE HELP ME!?

Question

I have an outstanding balance of around $6000 in credit cards with a high APR. If I do I balance transfer for a specific credit card with 0% APR for one year, I will obviouly save money. However, can I keep doing this every year to avoid paying interest? Somehow this sounds too good to be true. Also, what is a good card that I can transfer balance to that has 0% APR for one year and good rewards (whatever incentive).

Answer 1

Yes... you can continue to transfer to 0% APR credit cards for as long as you choose. But many people recommend against it since it could have a negative impact on your credit score.

But the negative impact from transferring to different credit cards on a regular basis is only SHORT-TERM. If you aren't taking out a mortgage or other big loan soon-- you should worry too much about the impact on your credit score.

The only other thing you want to watch out for, is 'balance transfer fees'. Many credit card issuers now include balance transfer fees to discourage people who make regular transfers. Luckily, there are still some balance transfer cards without balance transfers fees. You can find a great list of cards here:

http://www.asapcreditcard.com/0-apr.html

** Keep in mind, even if you have to pay a 'balance transfer fee', you'll still end up saving more money than if you didn't switch for the 0% APR.

GOOD LUCK!

Answer 2

Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.

Pre-determining interest rates

Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out. Go to : http://www.credit-card-gallery.com/calculator/ and calculate your balance transfer rates.

Answer 3

I SWEAR by balance transfers!

Most cards have 0% interest on balance transfers for a year, and you can do it as often as you please to pay off your balances.

It does sound too good to be true, but they (the credit card companies) want your business.

Keep in mind the following:

There is a fee for each balance that you transfer (mine was 3%).
Don't use the card for purchases, since the purchases and interest (if any) will be paid after the transfers are paid off.
0% interest on balance transfers and 0% APR on purchases are two different things, though some cards offer both.

Washington Mutual
Chase
CitiBank
Discover
Capitol One

Those are just a few.

To comment on what Edward said, Washington Mutual credit card holders can check their credit score for free as often as they wish through the WaMuCards website.

Answer 4

You can and I do. Get 2 or 3 cards and have the balance on one of them. When time runs out, transfer to the other. Repeat. Watch the fees though. Mine are often 3% of the balance transfer amount or a max of X dollars. This is like interest in a sense but you pay it up front. It has helped me pay down the debt much faster.

Make sure you don't put purchases on top of the transfers though. Try to pay it off ASAP as the 0% offers won't last forever.

Answer 5

Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.

Pre-determining interest rates

Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out.

New purchase interest rates don't equal the balance transfer rates

The intent of transferring credit card balances is to obtain a lower interest rate and eliminate your debt quicker. It is important to note that the balance transfer interest rate is not going to be the same for new purchases made with the credit card. In fact, new purchase rates are going to be higher. Also, payments that you make towards your credit card bill are going to be applied towards the balance transfer debt first, until they are eliminated. As a result, you are going to end paying a lot of money in interest costs for new purchases. It would be wise for you to pay off all of your balance transfers prior to making any new purchases with your credit card. Get all information about credit card at: http://www.credit-card-gallery.com/article/173,Credit_Card_Balance_Transfer_Tips

Answer 6

However, can I keep doing this every year to avoid paying interest?

Yes, you may do this. However, bear in mind that every time this is done, you give permission to the new card company to check your credit. Each time you are approved, or not, it affects your credit rating.

If you choose to do this, read the fine print/terms very carefully. You may find that the interest at the end of the zero period may be higher than you now have.

If your interest rate is high as a result of any missed or late payments, this is noted on your credit.
It may be worth your while to check your own credit rating. You are allowed once a year to obtain this, FREE, from the three credit agencies.
Experian, TransUnion and one other. You can do this online.
Your "credit score, the number up to 830" is not free from anyone.

I don't reccommend the (freecreditreport.com), adv. on TV. They want you to join their service for an annual fee.

Answer 7

forget every yr

you need to start paying it off
with 0 interest is great do it and try to pay off as much as you can in that time
then when the yr is up find out what your interest will be and call them if you pay it on time over and above the amount due by alot they may give you a 2 or 3 % rate