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The human mind has a penchant towards obtaining any feat with the least possible effort.The financial agencies capitalizes on precisely the primal human behavior. Who could resist money available by a mere swiping of a card? Everything seems affordable, nothings too expensive to purchase. This is what the credit card agencies try to propagate. Credit cards are an ingenious method where one can take money on credit and then repay them periodically. Wise planning and responsible usage is required by a card owner or he could end himself in a soup.
The credit cards came into existence if the early 1920's.They were originally privileges lent out by diners and oil agencies to their regular customers. Since then credit cards have come a long way although the basic plot remains the same. The major credit card agencies include master card, visa, American express etc. There are a plethora of credit cards to choose from, each catering to different sections of the society with varied needs. Based on ones requirements a credit card should be chosen. This decision is not one to be taken lightly. The terms and conditions of the credit card should be reviewed with at most care and the decision should be made after a thorough analysis of all the options.
Types of credit cards
The following are the types of credit cards that are available, each one addressing particular requirements. balance transfer card, reward card, student card, business cads etc.
Balance transfer cards
These cards are useful to those who own a card with a high rate of interest with an unpaid balance. By transferring the balance to a card that has a lower rate of interest the burden on the customer is relatively reduced.
There are two types of balance transfer cards
1. Minimum duration balance transfer cards
2. Fixed rate balance transfer cards
Before going in for a transfer card there are a few things that a person should look out for. One should check if the rate of interest offered is a promotional rate or a low fixed rate. If one is going in for a promotional scheme be sure that you will be able to pay the balance before the expiry of the promotional period, the lapse of which would incur a high rates of interest. The promotional rates are offered by minimum duration balance transfer cards. They are mainly designed for the purpose of enticing the customer into opting for their cards. The risk factors associated with these cards are relatively high.
The fixed rate balance transfer is a good scheme for those who have a credit card debt. They offer a low fixed rate of interest of interest throughout. This provides the consumer in debt, a better chance to repay the outstanding amount as compared to the earlier bank which had a higher rate of interest. Since November 2008 the options of low fixed rate bank offers are not being offered by major card agencies. The notions of a 0% transfer balance card are myths of the past.