Balance Transfer Revert Rates

June 28th, 2010

Once credit card introductory offers expire the revert rate is instituted. It is important for you to understand all of the rate features on your card as well as the difference in special feature rates.

0% p.a. for 6 months with 2% handling fee

A daily purchase rate may be much lower than a cash advance rate which may differ from a balance transfer rate. In any case, once the special rate offers expire than revert rates apply. The credit card revert rate may be different for each card feature and this can bring unpleasant surprises to unsuspecting customers.

Introductory Rates and Card Exceptions

Researching all of the rates and features of a new credit card should be a top priority for anyone looking to obtain a new credit account. Once the benefits and rates of a card are compared and the right one for your financial needs is applied for, it is important to read all of the fine print in the rate explanation section.

If your card has a special rate for balance transfers or an introductory offer than it is essential to know when these offers end; also check if other charges will incur the special rate or the credit card revert rate.

If your new card has a special balance transfer option than check to see if other charges will assume the normal interest rate or if they are protected by the introductory offer. It is best to educate yourself on the credit card features than to get a large and unexpected statement at the end of the month.

Revert Rates

The promotional rates are designed to attract the largest bulk of a new customers business. The introductory or special rates will end at a predetermined time and the credit card revert rates will be applied to any and all existing balances.

If a customer is unaware of this or forgets that the promotional rate is going to end, and leaves a large balance still attached to the card, than this can cause sudden and unexpected financial difficulties for the card holder.

This simple interest rate switch can start a domino effect of late payments, over the limit fees and account collection fees simply because the customer did not read the information that was given with the credit card.

This is usually the only time the financial institution will divulge that information in hopes that you will leave a large balance intact for when the credit card revert rate comes into effect. The information is provided and it is up to the consumer to take advantage of it and learn all the aspects of their credit card.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%