How to Get Credit Card Balance Transfer Offers
Reduce Credit Card Debt with a 0 Balance Transfer Deal
Oct 15, 2009
Securing the best credit card balance transfer offers is one of the most effective ways to pay off debt and reduce interest payments. However, 0% balance transfer credit cards are made available to attract reliable customers and will only be offered to individuals with a good credit rating. There are bad credit unsecured credit cards available for those with an adverse credit history.
Credit Card Balance Transfer Offers
It is important to apply for the transfer during the application process as the costs are likely to be higher when performed at a later stage. There will normally be a fee of about 3% and the entire balance transfer process will take up to four weeks to complete. Despite the initial fee, it remains possible to substantially reduce credit card debt interest payments within a couple of months.
FICO Credit Scores
A poor credit history is virtually guaranteed to result in no credit card balance transfer offers being made available. It is possible to get free online access to the credit reports for Experian, Equifax and TransUnion to check for any potential pitfalls before making any applications. Each credit reference agency holds potentially different information about the borrower.
How to Improve FICO Credit Scores
- Don't make too many applications for credit in a short space of time. Multiple credit applications will set off alarm bells for lenders as it implies that there are underlying financial problems.
- Correct any errors in credit reports under the Fair Credit Reporting Act 1970. Check that the name and social security number match and there aren't any erroneous applications for loans, etc. The change needs to be made directly through the credit reference agency, not the lender. Credit cards are currently the exception to this rule; the lender can be contacted directly.
- Spread debt across several charge cards and don't max out a single card. Although it will take a couple of months to be reflected in a credit report, clear some of the balance.
- Ensure that all loan, mortgage and charge card repayments are made punctually each month.
- Close down all redundant credit agreements. Don't simply cut up the card, submit the request over the phone and in writing. Ask them to confirm in writing that the request has been carried out.
Credit card balance transfer offers are an attempt to lure new customers. Whilst the individual wants to reduce credit card debt, banks want to make profit. This means that they will only lend money to those with a good credit history. In order to get approval for a 0% balance transfer credit card, use the above suggestions to improve FICO credit scores.
Sources
Tedeschi, Bob (2009, April). "Faulting Credit Firms on Fixing Errors." The New York Times.
"Fair Credit Reporting Act." Federal Trade Commission.
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