The majority of credit card issuers in the USA for attraction of new clients is advertized by the credit cards, offering very big induction period on extent (sometimes about 15 months!).

For variety of people the termination of period of validity of an induction period of credit card is a signal of the beginning for searching the new one. Many people use such offers to cut down the expenses, i.e. not to overpay money to creditors, throwing the debts into new, interest-free credit accounts. The smaller size of an annual interest or its total absence and accordingly the card holder will pay less money behind using the credit.

For balance sheet transfer usually it is required to call in bank where you want to translate the balance sheet and to ask them to send you the check for balance sheet transfer. Such checks differ nothing from their habitual kind. After reception of such check write out it addressed to bank in which you want to extinguish the balance sheet. Transfer of the balance sheet into the card with lower interest rate can save money if you don’t repeat the most widespread errors.

Also you should pay attention to the following issues:

1. A payment while translating the balance sheet (Balance transfer fees)

The majority of the credit companies levy a payment for balance sheet transfer. Such payment can be fixed (we will tell $35 – $70) or expressed in percentage of the translated sum, more often this percentage expression with instructions of minimum and a maximum amount.

At the moment of a writing of this clause, the majority of the most known emitters suggest to translate the balance sheet on their cards for 3 % from the translated sum (is usual makes a reservation that not less than $5 and no more than $75) that sounds attractively enough.

2. Other interest rates

Pay attention to the size of other interest rates on a new credit card where you are going to translate the balance sheet. Very often this category of cards has higher interest rate for the sum of purchasing or cash withdrawal. Higher – means above, than on a credit card which you now use for purchasing. Another matter if you aren’t going to use this card for purchasing.

3. Sequence of repayment of the balance sheet

Remember that in treaty provisions of absolute majority of emitters, first of all the order of repayment of your indebtedness begin with the sum greater interest rate, and only then your payments extend for the sum with the leviable smaller interest rate. For example, you have transferred the balance sheet at a rate of 3000$ into the new account, and have then made purchasing on 400$.

In the end of a month you have sent in bank the check for the same sum of 400 dollars. If under treaty provisions, APR on purchasing is above than for the sum of the translated balance sheet the check written out by you for 400 dollars, will go on repayment of an outstanding amount of the translated balance sheet (i.e. $3000 – $400 = $2600).

4. The induction period expiry of the term

The induction period won’t last eternally. Therefore it is necessary to reflect over, whether it will be favorable to you to use such credit card in the future?! You agree to pay 17 %, 20 % (and more than percent) after the induction period expiration?

Also remember that the credit company can change the interest rate at infringement of treaty provisions by you (at untimely payment, for example).

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