Are you tired of fighting high credit card fees? Why not lower your interest payments by transferring your balance to another card. Balance transfers are one the smartest and easiest ways to reduce credit card costs. Just be sure you understand the terms and conditions of the new card, so you can maximize your savings.
Before you run out and switch credit cards, consider whether you want to keep your current card. If you do, simply ask for a lower interest rate. Tell your credit card company you’ve found another card with a much lower rate and you’ll have to transfer your balance if they can’t cut you a deal. However, be prepared to do so if they refuse your request.
Why Use a Balance Transfer?
Balance transfers can provide card holders with a number of advantages. Transferring balances to a lower rate credit card can drastically reduce your interest rate and fees. Credit card companies charge varying interest rates on balance transfers and purchases. The most common rate is 0 percent for six through 12 months.
For example, the Chase Ultimate Rewards MasterCard and Citi Platinum Select MasterCard charge no interest for 12 months on balance transfers and purchases. The Discover Platinum Card and the Hess Visa from Chase drop the introductory rate after eight and six months, respectively.
Some cards link the introductory annual percentage rate (APR) to billing cycles. The GM Card and Fifth Third Bank Cash Rewards MasterCard, respectively, charge 0 percent APR for the first six and four cycles.
Transferring balances can also give you access to more perks. For example, you may be able to get a new card that has no annual fee, a longer payment grace period or cash back on purchases and other rewards. Some cards also offer car rental insurance, identity theft protection programs and money saving discounts.
How to Transfer Balances
Credit card companies commonly use low interest rate balance transfers to attract new customers. There are three main ways to transfer the balance on a card. One way is by simply filling out the paperwork provided by your new card issuer. Or you can contact the credit card company that you want to transfer a balance to and make arrangements for a balance transfer.
You can also shift balances by writing balance transfer or convenience checks. These simple checks look and act like regular checks. You simply write a check for the amount of the balance transfer and send it to the company you want to transfer a balance from. Some checks have an expiration deadline, so make sure you use them within the appropriate time frame. If you don’t, you’ll be charge the regular interest rate set for your card.
Regardless of which transfer method you use, you can only transfer as much as your credit limit on the card you are transferring allows.
Transaction Cost and Other Fees
Banks generally treat balance transfers like cash advances and have similar transaction fees. There’s no fee for balances transferred in response to special offers. But for Citi Platinum Select and many other companies, the transaction fee for balance transfers is 3 percent of the amount of each balance transfer, with a $5 minimum and $50 maximum. Keep in mind that a small amount of funds may not be worth transferring because the transaction fee may outweigh your potential savings.
In addition to standard transaction costs, banks also charge special fees that can take you by surprise. Some of the most common special fees include:

Late fees – Some banks wait a few days before assessing a late fee, but many impose it the day after the payment was due. Companies either charge a flat fee, such as $10 or $15, or a percentage, such as 5 percent, of the minimum payment due. To avoid late fees, mail off your payment so it arrives in plenty of time before it’s due. If you pay your bill at the bank’s branch or ATM, find out how long it will take to process your payment. Sometimes payments made at a branch or ATM aren’t credited for a few days.
Over-credit-limit fees – Most cards assess a fee if you charge more than your credit limit. These fees are charged each time you go over your limit, so you could be hit with several of them during the same billing period. Banks typically charge $10 or $15 for this fee or up to 5 percent of the amount you’re over your limit. These fees are in addition to interest charges.
Lost card replacement fees? If your card has been lost or stolen more than once and you need a new one, some companies will charge you for a replacement. These fees are range from $5 to $10.

Making Payments
After you transfer balances, be sure to make all your payments in full and on time or you’ll automatically be hit with higher fees. Generally, there’s no grace period for repaying balance transfers, so interest will accumulate immediately. (No interest will actually accumulate if you have an introductory 0 percent APR.)
When making payments, it’s important to understand that the payments you make will first be applied to balances with lower or promotional balances and then allocated toward higher APRs. That means you’ll be paying down 0 percent balance transfers before you even touch the balance on regular purchases which can be charged at a rate of 9 to 18 percent. As a word of advice, consider using a different card for your regular purchases and pay off the balance each month. Keep your balance transfers restricted to a separate card.
After the Promotional Honeymoon Ends
You need to keep a close eye on the promotional period. As soon as it expires, normal interest rates will apply. The standard variable APR for Citi Platinum purchases (8.99 percent) will be applied to all remaining purchase and balance transfer amounts. Likewise, the standard variable APR for cash advances (19.99 percent) will be applied to all remaining cash advance amounts. If you default on Citi Platinum’s card agreement, the company can immediately increase the APR on all balances including any promotional balances to a variable default rate of 28.99 percent.
Your post-introductory APR will depend on your credit history. If this interest rate is significantly higher than the rate on your old card and you have a remaining balance, you’ll wind up losing money. Of course, you could always transfer your balance to a new card with a lower promotional rate. Just be careful not to entangle yourself in a vicious cycle that could backfire later
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The popularity of cash back credit cards hasn’t waned over the years. In fact, today, more and more people still prefer a cash back credit card over other reward credit cards programs. Do you own a cash back card yourself? Or are you still thinking about applying your own cash back card? Whether you already have a cash back card or is still planning on getting one, this article would surely be useful for you. Let’s discuss more closely how these reward credit cards work.

How Cash Back Credit Cards Reward Holders

Although specific terms and conditions vary between each credit card issuer, the procedure on earning the cash rewards is pretty much the same. Generally, a card holder earns a corresponding point for every dollar he spent using his credit card. Some credit card issuers give 2 points or double points for every dollar but in most cases, 1 point is given for each dollar amount charged on the card. The points are converted to cash or money points, thus their name- cash back credit cards.

What can you do with the cash points you earn? You can use these cash points to make new purchases or pay bills using your credit card. Some credit cards would require the holder to spend his reward from a specific shop while others give the flexibility to use your cash rewards from any store you want.Discover Gas CardSome cash back cards impose a maximum amount of cash points that the card holder can earn. After reaching this limit, the card holder may stop qualifying for more points. The best cash back credit cards however do not impose restrictions on the amount of rewards you can earn. As long as you’re using credit card on your payments, you continuously earn points on your account. You can earn as much cash as you want as long as you’re an active member of the reward program.

Competition among credit cards

Cash back credit card companies are all competing for attention and in order to get more clients, these companies promise only the best. Or course, not everyone deserves your trust. For this reason, caution is advised for everyone who plans on applying for a reward credit card.

Most reward credit cards are accompanied with unreasonably high interest rates but if you do your research, you can find one that offers a good deal. When it comes to annual fees, you can now find cash back reward cards that do not have annual fees. If the cash back card you choose requires an annual fee, you’ll want to make sure that the cost does not outweigh your potential to earn rewards. If you’ll be paying for an expensive annual fee each year, then can you still say that you are being rewarded? Or would you end up paying more than what you get back?

Lastly, cash back credit cards will only work if you keep up with your payments religiously. Never carry over your balance for the next billing cycle if you don’t want to suffer paying for an expensive interest rate. Make it a point to pay off your balance in full each month so make sure that you will be rewarded.

Even if you write the check while waiting in line, it will take you forever to pay by check in most stores. They have to see your drivers license, write down all of your info, circle your address and then run it through the system. It isnt the stores fault. The need for all of the double-checking is caused by check fraud and identity theft.

Many shoppers, myself included, have turned to debit cards. Debit cards arent really like credit cards, they are an electronic check. But some banks are starting to offer frequent flier miles, rebates and cash rewards to regular debit card users. The lines are blurring for some consumers.

When you shop with a debit card, you need to know how it works and the drawbacks.

There are two types of debit cards: PIN cards and signature cards. With a PIN card, the money is automatically deducted from your account. You must use your PIN number to use the card. Sometimes you can even get cash back from a merchant.

Signature cards are often called check cards. The money is deducted from your checking account within usually two or three days. You dont have to enter a PIN, you simply sign the receipt.

Most cards today will perform as both types of cards. You can use it as a PIN card and receive money back or as a signature card. Both types will work in an ATM machine. With a PIN card, the money comes out of your account immediately. With a signature card, you have to keep track of your receipts, because, like checks, the money will not come out for a few days.

Debit cards are a good alternative to credit cards. You have the convenience of a card with a limitation to the money that is in your checking account. While you cant go on a spending spree, you must keep track of when you use the card. It can be quite surprising how it all adds up.

Debit cards dont have some of the legal protections that credit cards have. Credit cards give you the right to withhold payments on an item that is defective. Debit cards dont allow this, so you would have to try to get a refund or replacement item. For large purchases, you are often advised to use a credit card. Then simply sit down and make the payment to your credit card company that same day.

Debit cards require that you report a theft of your card within two days of discovering the loss to recoup some of your stolen money. If you follow all guidelines, you will only be liable for $50. After two days, you are liable for $500. After 60 days, you are left holding the empty bag.

Credit cards often will offer more protection than the law allows. Several cards offer zero liability for unauthorized use of a debit card.

While a debit card often gives you the ability to use it in place of a credit card, say for telephone or internet shopping, there are times that you should use a credit card instead. Hotels, rental-car companies and even gas stations will place a hold on your account for a certain amount of money until you check out or return the car. The practice ensures them that you have the money to pay the bill.

If you use a card with the available credit, you probably wont have any problem. But when using a debit card, be careful. The amount they place on hold is exactly as if it has already been spent. This could prevent you from having checks go through or withdrawing money from your account.

The best advice for using a debit card is to be meticulous about keeping your receipts and writing them down in your register. It is so convenient, often we loose track of how and where we have spent the money.