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4 Things the Best Balance Transfer Credit Cards Have in Common
Anyone who has ever dealt with balance transfer credit cards knows that some of them tend to outshine the others. In fact, the difference between one balance transfer credit card and another can be like the difference between night and day.
So how do you determine which balance transfer credit cards are the good ones and which aren’t? By looking for these four telltale signs.
1. A Low Interest Rate
Almost all balance transfer credit cards have a low interest rate when you sign up for the card, but the best balance transfer credit cards have interest rates that stay low.
Oftentimes consumers jump at the chance to transfer their credit card balances to a card with a impressively-low interest rate, not realizing that the rate jumps up after six months or so. If you do this, once the introductory period ends, you may be in worse shape than you were before.
If you have a $3,000 balance on your credit card and you’re paying 16.99 percent, it can be tempting to search for balance transfer credit cards with a 0-percent introductory rate. But ask yourself — what is the interest rate going to be when that 0-percent period is over? If it’s higher than 16.99 percent, do you really want to transfer your balance to that card?
Instead of worrying about a low-interest introductory period, look for balance transfer credit cards that offer a low interest rate for the long term.
2. Whatever Happened to Grace?
Do you remember the good old days? Back when a 30-day grace period was the norm? Those days are long gone. Nowadays you’re lucky if you get a 20-day grace period and some credit cards aren’t offering grace periods at all.
Interest isn’t the only thing you should concern yourself with when looking at balance transfer credit cards. Make sure that the credit card you apply for has a grace period of no less than 20 days.
3. They Want You To Pay What?
With balance transfer credit cards competing so hard for business, you’d think they’d be willing to bend over backwards to get your account. Not so…
Surprisingly enough, many balance transfer credit cards charge a balance transfer fee to transfer your debt. Usually the fee is calculated as a percentage of the balance being transfered and, depending on how high your balance is, that fee can amount to quite the pretty penny.
Do yourself a favor — only apply for balance transfer credit cards that don’t charge a balance transfer fee. Regardless of what the other credit card companies want you to think, they ARE out there.
4. The Importance of Online Access
Most credit card companies offer online account access nowadays, but the scope of that online access and what is required to get it often differs. Some balance transfer credit cards make you pay for online account access and others charge you a fee to make payments online.
Before applying for balance transfer credit cards, make sure that the cards you are interested in offer free online account access and don’t make you pay for the privilege of online payments.
With credit card debt becoming the norm and so many companies offering balance transfer solutions, it’s important that you find the credit card that fits you perfectly. Don’t settle for just any old balance transfer card. Pay close attention to the above four tips to find the best balance transfer credit cards on the market.
Loans-Bane or Boon
Owning a house is a dream of everyone. Majority of buyers look for a house to have a roof of their own while others look to buy a house as an investment option. In India, nearly 70-80% buyers belong to middle class or salaried class and cant afford a house at cash down payment. So, they look out for options like loans. But before taking a loan one should do a little bit research on interest rates, down payment, home loan eligibility etc so that a more cautious approach is taken which can save the buyer from taking any wrong decision.
Here are the things that you need to keep in mind before taking a loan:-
1) Property under construction: Some banks fund under construction property while some do not and that too depends on whether builder is reputed or not. So, consider buying a property from a reputed builder.
2) Ready / resale property: While selecting a ready or resale property, one should always keep in mind to take proper registered documents from the seller declaring his ownership. Besides that, one must check the condition of property and if it is urgent to buy a property on cash down payment, one can get some discount on that property.
3) Pre-approved property: Some major builders get their property approved from certain banks. These banks maintain the record of legal title documents and if somebody wants to buy the same property, the banks do not recheck documents. The banks and builder agree on a time period and takes into consideration a time when the project gets completed and then banks approve a loan and release payment after reviewing the construction site and banks take no liability if property is not completed on time.
Some Important terms you should know:-
Loan Amount eligibility: This is the amount which one receives from the bank but this depends on factors like cost of property in India, income of buyer and repayment track record i.e. will he / she be able to pay the amount back
Joint Loan: You can also take joint loan by clubbing with your wife or any relative. This increases your loan amount eligibility and in this way both become joint borrower of the loan. It increases the chance of increasing loan repayment by seeing their income.
Fixed and Floating rate: These are the various modes of interest. As the name suggests, fixed rate remains fixed during the entire period of loan whereas variable or floating rate depends upon the market condition and keeps on increasing and decreasing and monthly installments remains the same but repayment period varies.
Flat rate: The flat rate of interest is charged for the entire period of loan irrespective of payments. For instance, if somebody has availed a loan of five lakhs for five years, the rate of interest will be charged on five lakhs for five years and it will not depend on repayments of that person.
When taking a loan, one has to pay 15% of amount as down payment for a property and for rest 85% balance, one can avail loan for. Also, you can get certain tax benefits from it. Ones loan repayment period varies and depends upon the type of loan taken. The monthly EMI, which you have to repay, is divided into principal and interest. One can avail tax benefits by showing interest as a loss and it works like deduction. Also, once a person starts repaying loan amount, he / she should not miss their monthly installments. If one starts doing that, he / she will come in defaulter category and penalties will be imposed and it will effect your credit history so remember to make your payments on time.