Credit Card Articles, Using Credit Cards - Thursday, October 11, 2007 20:52 - 0 Comments

Free Balance Transfer

How To Play The Free Balance Transfer Game

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Credit card balance transfers is the act of transferring your debt from one of your credit cards to another one, normally because the new card offers a lower interest rate. A free balance transfer credit card allows you to make this exchange with no balance transfer fee. Credit card balance transfers offers are made up of three (3) key parts.

1. Offer rate
2. Offer duration
3. Transaction fee

Normally there are three (3) kinds of credit card balance transfers offers by rate and duration

1. Purchase rate
2. Teaser rate
3. Fixed life of loan rate

Purchase rate Offer - The transferred balance is subject to the same rate as the card’s purchase (merchandise) rate.

Teaser rate Offer - For a limited time you get a very low rate. 0% is the most common teaser rate, however after the teaser period ends the rate increases.

Recommended: CreditorLink offers a wide selection free balance transfer credit cards. To compare them all click here.

Fixed Life of Loan Rate Offer - The low rate is fixed until the transferred balance is paid in full. This type of offer is usually guaranteed as long as your account is paid on time and kept current.

Although some cards offer free balance transfer, many other plans require a fee per transaction. The rate varies between 1 to 5 percent of the amount transferred. The key to playing the free balance transfer game is finding a nice selection of multiple cards that allow you to transfer your balance(s) for free. As soon as your 0% balance transfer offer (or other introductory offer) expires you simply transfer the balance on your card to a new credit card with a new 0% interest introductory rate. Doing this can help keep you interest free for much longer than the normal 4 to 6 months.

Important! One thing you have to watch out for is a loophole set by credit card companies that allows them to pull your free balance transfer abilities if you are late in making your payments. These types of offers reward cardholders for paying their bills on time so be sure to stay current or you could miss out on the savings.

It’s really all about finding the right offers. Creditorlink offers many credit cards that come with free balance transfers. It is important that you are very well informed as to the terms you are agreeing to when applying for your credit card. Click here to view all of our free balance transfer credit cards and start comparing offers today!