Referring to the Federal Reserve website about credit card disclosures, I think that The Fed might already predict today’s recession on May 23, 2007 by ensuring that consumers get important information about credit card terms in ways they can understand, in formats they can use, and at times when it is most helpful.
The proposal allows you and I to do balance transfer – that is, transferring debt from your previously owned credit card to a new card that offer a lower interest rate, as the credit card information disclosures enable us to do just that.
That is definitely a blessing in disguise for credit card consumers, as well as for those who use credit cards to do business, especially in today’s recession.
Balance transfer saves the day
Along with the ever-presence of the Internet, you can easily do 0 balance transfer online on many credit card websites.
As soon as you spot a credit card issuer that offer a lower interest rate, you can easily apply online for that card and benefit from it.
With some issuers offer 0% APR balance transfer, you can find your way out of the credit crunch easier and faster.
The Fed’s role to help businesses: The butterfly effect
The Fed is the one to look up to if you own a business of any size. I don’t know about you, but as a non-finance expert, I take every word from what The Chairman of The Fed said as a fact that acts like a butterfly effect.
Essentially, the butterfly effect is part of chaos theory, whereas a small change can affect the whole system significantly. In this case, what The Chairman says will affect business world, not only in the US, but also worldwide.
If The Fed had a Twitter account, I will definitely follow it very, very closely :)
In term of credit card disclosures, The Fed offers an opportunity for business owners using the plastic to fund their businesses to restructure their businesses’ finance. This might not be significant for a consumer credit card holder, but a significant perk for a business-purposed credit card holder.
How to do balance transfer right
I have a tip or two for you who consider doing balance transfer in the near future:
- 0% interest on balance transfer is not always offered together with 0% interest on purchase – obviously, choose credit card issuer that offer both.
- Do your due diligence on previous credit cards well prior tranfering to the new cards.
- Different credit card issuers, different perks – choose one that will benefit you the most.
- Calculate the overall benefits of the balance transfer, including the ‘total perks’ – don’t rely solely on the interest rate to decide on the transfer.
- Act fast, be nimble – do your homework, do the balance transfer the sooner, the better – don’t wait until the situation is too hot to handle.
I recommend you to consult with legitimate and authority resources, including websites, on looking for the best balance transfer solution for you.
The Fed fan
Image by epicharmus.