O Interest Card Transfer

Credit Card Rules

After years of rising rates, falling limits and new fees, consumers have good reason to question the value of the plastic in their wallets. Now that new protective legislation has been in place for a year, it's time to reassess. Kelli Grant, Senior Consumer Reporter for SmartMoney.com gives tips on what to look for to get the most value from the plastic in your wallet.

Transfer offers have started improving again, and they're worth considering if you're working to pay down a balance. The better offers last for at least 18 months, and charge just a 3% transfer fee. We found two Citibank cards, the Diamond Preferred and Platinum Select, that offer up to 21 months.

If you ever carry a balance, ignore rewards and focus on getting the lowest interest rate possible. Rates are substantially higher than in previous years -- almost 17%, compared with 13% in 2008. But you can still find rates of less than 10% through smaller issuers. The Simmons First Platinum Visa offers 7.25%.***Under the new regulations, people younger than age 21 can't obtain credit without a co-signer, or proof of their own income. Stricter lending terms mean issuers are likely to turn down a student who applies for anything other than a student-specific card. Make sure the issuer doesn't count student loans as income, or your child could end up with a too-big credit limit that makes it easier to rack up debt.

All the consumer protections of the new laws - no interest rate increases on balances in good standing, payments allocated to the highest-interest rate part of your balance, and so on -- don't apply to business cards. Issuers including American Express and Chase have extended some protections, but they're not guaranteed like those for consumer cards are. So entrepreneurs should actually use a personal card for expenses if they may not be able to pay off balances in full each month.

If you routinely pay off your balances in full each month, well, the rewards are improving. Introductory offers routinely offer more than $100 in bonuses, and it's easy to get at least 1.25% cash back with a wide range of extra-point offers. Use a comparison site like Billshrink to figure out what the best card is for the places where you spend the most.

For more information on the CARD Act regulations and other consumer tips click here .

A Couple Of Tips Regarding The Pros And Cons Of 0 Interest Rate ...

What Are 0 Interest Credit Cards?

Given the common perception that charge card accounts make money purely out of the interest paid by customers who have missed paying their bills in due time, it might often be confusing to see such cards 0 interest credit card accounts. It means a customer doesn’t have to pay any interest at all on the outstanding balance on the card for an initial period. This is equivalent to an interest free loan that one usually gets only from parents and a few friends. Hence, there is more to it than just the interest rate. The terms and conditions of 0 interest charge card accounts are very important.

When Should You Take Them?

Imagine a situation when a customer has 3 charge cards with varying interest rates. It is possible that due to overspending, the customer now has dues and accruing interest on the balances of each of the cards. Keeping track of the interest which is constantly mounting is one thing, deciding which one to pay off first and so on is another headache. If you can find a zero interest charge card account you can transfer all your balance to one card which will help you manage the whole thing better.

Secondly, you can start worrying about paying the principal as there is no more interest accruing for a fixed period.

Cons Of Taking The 0 Interest Credit Cards

0 interest charge card accounts are not going to stay that way forever. Generally the time period is around one year for the more popular charge card companies. If you transfer too much balance and then are not able to pay it back within the stipulated time frame, chances are that you will have to pay much more interest, as the rates are quite high once the initial period gets over.

To get a 0 interest card, the companies have to trust you. Therefore, it is very difficult to get the card at the first place, if your history is not all that impressive. Even if you do, the later annual percentage rates will be too high for your comfort.

If one gets complacent thinking about no interest, one might easily end up overspending and with a high balance outstanding at the end of the initial period. This is not a favorable situation at all as it becomes very hard to control the amount due from then on.

Your credit rating which is so important for getting loans in the future and various other benefits will take a beating if you transfer too many balances from one card to another. The reason for this is that it will indicate lack of profitability from you for the credit card account companies.