Today, February 11, 2013, I announce the start of my newest series on balance transfer credit cards. My name is Joshua Rodriguez. Throughout the past several years, I’ve helped tons of people save thousands of dollars on their credit card debt. No matter if they needed hardship assistance or they just wanted to get paid off, I did what I could to help. One option that I’ve always been a little fond of is balance transfer credit cards. So, I’ve decided to start this 8 week series on the topic. Here are the 7 steps to this series and the dates they will be released:
Step #1: What Are Balance Transfer Credit Cards And Why I Might Want One
Step #6: Transferring Balances
So…Without further ado, I bring to you…
Part #1: What Are Balance Transfer Credit Cards And Why Might I Want One?
To start, I figured it would be best to go to the beginning of credit cards and understand where balance transfer credit cards come from. When the first lender started lending through credit cards, through a few glitches, they realized success. With free trade being what this country was founded on, more and more lenders started to get into the gamble of loaning through credit cards.
As more and more lenders started offering these incredibly valuable pieces of plastic, more and more options became available to consumers. Now with more options on the market, lenders had to figure out a way to really get the customers interested in their products. This is where things like incredibly low interest rates, sky miles, cash back, travel benefits and more come from!
Having to make their products stand out to consumers, lenders started to think about what consumers really want from their cards. What many lenders came up with is, consumers want the lowest interest rate possible coupled with the best customer service available. These lenders found that there are several consumers out there that don’t like their interest rates or, the customer service that they receive from their lenders. By offering low interest rates and a way to transfer a balance from one lender to another, banks could really make it big! Thus, he birth of balance transfer credit cards.
Balance transfer credit cards offer consumers incredibly low promotional interest rates and highly competitive long term interest rates in most cases.
By allowing consumers to transfer balances from high interest rate credit cards, balance transfer cards have saved tons of people tons of money. Now, what about the controversy that says balance transfer credit cards are a trap?
There is a bit of stigma associated with this topic, I know that! The truth is, balance transfer credit cards aren’t for everyone. However, the reason people call them a trap is because they use low promotional interest rates as a marketing tactic. These promotional rates last for a short time, usually between 6 and 18 months. After the promotional period, interest rates are increased to the standard interest rate. But, is this really a trap? No! You know what your promotional interest rate will be and how long it will last before you apply. You also know what your standard interest rate will be when the promotional period expires. With that said, the promotional interest rate isn’t a trap, it’s a great marketing strategy and a way for consumers to save money for a few months to a year and a half!
Why Would You Want To Think About Balance Transfer Credit Cards?
The truth is, most balance transfer credit cards offer promotional interest rates. Most promotional interest rates will be 0% for anywhere from 6 to 18 months. After the promotional period, you will pay your new standard interest rate. In most cases, these rates are incredibly competitive! So, in all, you would want a balance transfer credit card to save money. Also, these cards can be used to consolidate multiple debts into one easy to manage payment!
I hope that you’ve enjoyed this part of “Balance Transfer Credit Cards – A 7 Piece Guide To Understanding This Option“. Come back on February 18th for part 2 “Dissecting Interest Rates And Fees Charged By Balance Transfer Credit Cards“