Bad Credit Credit Cards Balance Transfers

Bad Credit Credit Cards Balance Transfers

If you have succumbed to credit card debt that seems insurmountable, don’t give up hope. There are ways to lower your debt amount even if you have bad credit. One of the easiest ways to lower your total debt is to obtain a bad credit credit cards balance transfer.

A balance transfer is one way to take all of your credit card debt and transfer it into one easier to manage account. Credit card companies offer this in an effort to get new customers, even if they may have some credit card accounts in arrears.

Balance Transfer Basics

It is always important to read all of the terms of a balance transfer before you agree to it. There are many good deals to be had, but there are a few that may increase your debt instead of reducing it. Things to look for in a good account offer include:

• Low introductory interest rates that don’t increase
• Low or no transfer fees
• Low monthly and annual fees
• Low or no application fees
• Low deposits for secured accounts

While many credit card companies charge fees, especially if you have less than perfect credit, the fees shouldn’t be exorbitant. Fees should be in the $25-75 range; if they are higher, look for a better deal elsewhere.

Companies Offering Balance Transfers

Each credit card company determines their own criteria of which bad credit accounts they will accept. They will take into consideration information which may have led to your bad credit situation, such as medical bills or temporary unemployment. Including this information on your credit report may help you obtain a bad credit balance transfer more easily.

The following banks offer balance transfers to those who have less than perfect credit scores:

• Orchard Bank Secured MasterCard
• New Millenium Bank Secured Platinum Visa
• Capital One Standard Platinum

Secured and Unsecured Balance Transfers

A secured credit card balance transfer account requires you to deposit funds in order to open the account. The amount you are able to withdraw usually equals the deposit in your account. Secured accounts that offer balance transfers may require a higher deposit, but it probably won’t equal the balance transfer amount since it is usually in the thousands of dollars.

An unsecured balance transfer does not require a deposit, however, the bank may require a high application fee, offer higher interest rates and a high annual fee, as opposed to unsecured accounts for people with good or excellent credit.

Why Use a Balance Transfer?

People who have poor credit may want to transfer their balances from other credit card accounts into a single account so that it is easier to manage. People who choose to do this may set the card aside or close the old accounts so they aren’t tempted to use them again and get into deeper debt. By using one account with a lower interest rate, people will save money in the long run. They may also be able to pay the account off faster if they make payments that are higher than the required minimum payment each month. On-time monthly payments will also assist in helping to repair a credit score.

Conclusion

Many people who have bad credit scores can often benefit from obtaining a balance transfer if they have multiple credit accounts that are difficult to manage. Consolidating your balance into one account is often easier to manage and will eliminate a large number of monthly fees, annual fees and high finance charges. Consider opening one of these accounts if you are serious about repairing your credit and lowering your monthly payments.