Thinking of taking advantage of a balance transfer credit card offer you received in the mail? You might want to wait until after February 22, 2010 to do a balance transfer.
The reason being, after February 22, credit card companies have to apply any extra principal paid to the credit card balance with the highest credit card rate.
Here is an example: You have a credit card balance of $10,000. For half the balance, $5,000, you are being charged a rate of 19.99%, the other half you are being charged a rate of 14.00%.
Right now, if you do a balance transfer and pay down $5,000, the extra principal payment will be applied towards the balance that has a rate of 9.99%.
After February 22, your credit card company will have to apply the $5,000 towards the balance that has a rate of 19.99%.
Applying any extra principal payments towards the balance with the highest credit card rate is only one of the new credit card rules that take affect on Monday.
For a complete list of new credit card rules that take affect on Monday read: ” New Credit Card Rules – How the New Credit Card Laws Affect You.”
Similar Posts:
- The CARD Act: How it Will and Won’t Protect You After February 22
- Six Steps to Getting Out of Credit Card Debt
- Who can use an Interest Free Credit Card?
- Consolidating Credit Through Balance Transfer
- What to Do With Too Many Credit Cards
