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The Game Of Switching- Credit Cards




By: Dr. Judith Earl

Are you overburdened with the outstanding balance of your credit cards? Are you sick and tired of juggling between 3-5 credit cards? Donít you need a way out to relax yourself from this burden? If yes, then read on. This article might help you in finding out the way.

One of the easiest ways to relieve yourself from the burden of outstanding balance of your credit card is to switch issuers. Many credit card companies offer extremely low (or zero) interest rates on balance transfers.

Now, letís find out what are balance transfer deals and how is it going to help you?

A balance transfer is when you move your balance from your existing card to another card for better APR. A balance transfer credit card is where you get either a zero interest rate or very low interest rate for a set period. The set period is normally for 6 months; however it might vary at your lenderís discretion. Balance transfer would be the smartest option for you to consider if you think you can pay off the debt within six months and the 0% offer applies for six months. Yet to remember that once the set period expires, the increased monthly repayments can soon outweigh the introductory benefit offer. So, stay alert and keep yourself informed about the move of your credit card company. It should be remembered that if utilized properly a balance transfer can act as a much more favoured option than a personal loan.

So, choose your new credit card wisely so that the advantages could prove beneficial to you. Companies appear to be extremely liberal in allowing you to transfer your debt to them and waiving interest, but in reality all they want is their share of business. The best way to get their share of business is to lure you over by offering a zero or low interest rate. Therefore, it is for your good to assess and analyze every point before switching on to a new card.

UK lending market ( http://www.seek.uk.com ) is brimmed with credit card companies offering balance transfer option and many other benefits. The market is fiercely competitive in nature which forces the credit card companies to attract you by offering 0% interest rates, lower APR et al. These attractions might turn to be too tempting for you, but in realty it might be gimmick. Be very careful before applying for balance transfer. It is not advisable for you to opt for the first deal which comes your way. In contrast, you should spend a few hours examining all the cards on offer and single out which things you need and which you donít, find out how much you can save by using the free offers such as insurance, cash back and such, and how much you can pay each month to clear your debt.

Things to remember: The switching game might be a publicity gimmick. So, weigh out all the pros and cons before switching to a new card.

If you do decide to apply for another card, you need to find out how much credit your new card will give you and how much monthly interest you will pay.

About The Author

Dr. Judith Earl is managing http://www.seek.uk.com which is a leading uk finance portal.

This article was posted on January 30, 2006

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