Balance Transfer Of Credit Cards
Transferring Credit card balance is a good way of minimizing credit card debt, and can also be a way out of the burden of debt. Credit card issuers, realizing the demand of balance transfers among customers, bring about good offers on balance transfers. With plenty of credit card companies around, the card issuers are facing stiff competition. The following points should be kept in mind while going ahead for a balance transfer.
It is important to ensure that the balance transfers are done on time, without overlapping offer periods from one card to other, which could cost you high interest rates. Please note that each bank will move at different speeds in responding to customer requests. Ensure that the credit card offers with zero balance transfer are always immediate and are applicable at the time of your application. There is no point in applying for a transfer when the offer period is about to end. While opting for a balance transfer that is free of interest, watch out for any charges hidden in small print. An offer of 0 APR (Zero Annual Percentage Rate) should exactly mean what it conveys.
The kind of card from which balance transfers are made is also crucial. The rate of APR in Store cards is greater than regular credit cards, so all balances can be transferred to a single card with low interest rate. A solid amount of money can be saved this way. Keep track of the correct date of end of zero interest offer period and apply for anew credit balance transfer credit card at least fifteen days prior to the last date.
The source which provides you with information regarding interest rates on balance transfer offer on your card should not provide any biased information over a particular bank or credit card. Also the source should provide information with comparative charts that are easy to understand without any unnecessary pressure or misguidance.
Lastly try to make sure that the facility of interest free balance transfer on your card is quick and flexible. These days, while giving application, you may be asked for the details of balance transfers of your credit cards in writing. Always keep in mind that both parties should be aware of the proceedings simultaneously.
The right usage of balance transfer of credit cards could be a convenient way of avoiding a credit card debt.
Students' plastic habits create huge credit problem
Impulsively dropping up to $10,000 on accessories will come back to haunt students, who tend to accumulate thousands of dollars in credit card debt before they graduate from college because of reckless spending, according to a study on college students' financial habits.
Some students are laying down big bucks in shops around campus, and the majority of them are paying with credit cards - a countrywide spending trend that is leaving students seriously in debt, states the study by loan company Nellie Mae.
According to the report, 76 percent of students across the country began the 2004-05 academic year with an average credit card outstanding balance of $2,169.
A separate 2006 study by the same company found the average credit card debt for graduate students is $8,612. No new studies on either demographic have been released since, but the results still ring true on BU's campus, shop owners say.
Store representatives in the BU area said the majority of student customers pay with credit cards, often racking up pricey purchases.
Guitar Center audio manager Lucas Lejeune said BU students make up about 50 percent of their clientele, with guitars being the most popular item. Lejeune said it is not uncommon for students to spend "thousands of dollars" on guitars ranging from $100 to $10,000.
Landry's Bicycles manager Mark Vautour said he estimates that 80 percent of BU students' transactions on items including bicycles, accessories and clothing are made by credit card.
Vautour said BU students buy a whole spectrum of products and, with bike prices ranging from $250 to $2,500, BU students have been known to buy wheels priced at the higher end.
In response to the growing use of plastic for large purchases, the Federal Trade Commission's Northeast Regional Force began an outreach program called Project Credit Smarts seven years ago to teach students about good credit practices.
In 2002, Project Credit Smarts teamed up with BU, Northeastern University, Suffolk University and the University of Massachusetts "to educate Boston-area students about credit card use, its dangers and pitfalls," according to an FTC Northeast Region press release.
The project aimed to teach students that credit cards are like loans that must be paid back with interest fees. It also suggested students pay balances in full each month to avoid accumulating debt, but the program's overreaching results are debatable considering the continually high credit card debt accumulated by college students.
Vatour said the way students spend reflects their purchasing patterns before college.
"Depending on how their parents raised them, some shop around, some are impulsive," he said.