Credit Card Balance Transfer Offer

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.  After February 22, credit card companies have to apply any extra principal paid to the credit card balance with the highest interest rate.

For 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 14.00%.
• 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 effect on Monday.

For a complete list of new credit card rules that take effect on Monday read: "New Credit Card Rules - How the New Credit Card Laws Affect You."