Finding a Balance Transfer Deal

When you are trying to find a balance transfer deal you are going to find that it hinges on a great many things. For instance you are going to want to look at the amount of debt you have, how fast you can repay it, your credit score, and of course your financial situation. You will find in this section there are many things that will be able to help you determine what the right deal for you could be.

First you have to determine if you have a good credit score and history. In order to find out that information you will need to contact your credit reporting agencies. Often you are allowed to have one report from each agency free during the year. You may have to pay to get the scores, but it is important that you ascertain your credit score before you even begin to think about switching cards. There are a lot of things that are dependent on your credit history and score. One of the things is going to be the credit limit the company is willing to extend you. The credit card company is going to look at your credit report for risk and if you don’t have a good record they can either refuse the application or not give you a high enough limit to make a difference at the moment. So you are going to need to look at your credit report for CCJ’s, other arrears, and defaults to make sure there is nothing surprising on the card. Sometimes there are mistakes, but as long as you are aware of them you can get them fixed and save yourself from being rejected. When you are rejected your credit score is going to lower. This means that you don’t need to enter into a situation when you are almost guaranteed a rejection because you will make things worse. If your credit rating is considered fair or bad there are things you can do, but a balance transfer may not work for you.

Ask yourself if you think you can pay off the debts in a year or less. If you can pay off your cards in less than a year you are going to find that a balance transfer deal is right for you. Keep in mind that many of the balance transfer deals are only going to last for a year or less. This means if you can’t afford to pay of the card before that deal is up you are potential not saving much.

If you figure you can just change credit cards every six to twelve months you are what would be considered a credit card tart. This as we explained earlier on could be a problem with lowering your credit score. If you figure you can take the hits for a while you just need to be on top of things with the credit cards. In other words make sure you do change cards before your balance transfer deal ends. It can take quite a bit of your time to do this and often the hassle is not worth it.

Return To Financial News February 2008
A Poorer Credit Card Score Deal
Balance Transfer Explained
Finding a Balance Transfer Deal
Finding the Best Credit Cards
How to Use a Balance Transfer Card
Questions on Balance Transfers
The Best Deal
Top 0% Deals
What Are National Savings and Investments