How to take advantage of balance transfersby TM Maria Be a king in your own kingdom
Credit card balance transfers are common today. Many credit card holders use them, because when used properly, they can be a valuable tool. If you make good use of credit transfers, you can take advantage of the low interest rates offered by credit card companies to pay off your debts. To take advantage of it effectively, read the following tips.
Find a 0% introductory offer
When you want to transfer your credit card balance, look for a credit card that offers a 0% introductory rate. Although many credit card companies offer introductory rates of 8 or 9%, it is quite possible to find 0%. A rate of 8 or 9% is very advantageous, but can still result in a large amount of interest charges after a few months. Do not take anything less than 0% for a credit transfer. This means you can transfer your credit to a new account without paying any interest charges throughout the introductory period. However, if you’ve a business and need longer money, here is Seek Capital will help for longer balance.
Look for long-term launch periods
When evaluating credit card offers with a 0% rate, make sure you choose the one with the longest introductory period. The 0% offers are not necessarily all equivalent. Some credit cards will give you an interest rate of 0% for a period of six months, while others will give you two years. In this situation, look for offers of twelve months or more. This way, you can maximize the amount of time you have before you start paying interest or look for another introductory offer.
Pay for the expenses
Generally, credit cards charge you a fee based on the total amount of money transferred to the new card. Thinking of a strategy to minimize these costs is important if you want to be a winner. By comparing different credit card offers, read the fine print to discover the hidden charges for this service, if any. Otherwise, you will lose a lot of money.
Only transfer your balance if it is necessary
If you wish to make a balance transfer, you will need to minimize the number of transfers to avoid the costs incurred. If you constantly transfer balances from one card to another, you will eventually end up paying a lot of money in transfer fees. It could also be that by using multiple cards, you end up forgetting the expiration dates of their introductory offers. Also, it's easier to forget to make a payment when you have multiple cards to manage. Usually, when you forget to make a payment in an account during the introductory offer, the rate goes up to the regular rate. This could eliminate the benefit of making a balance transfer. The best would be to consolidate all your balances on a single 0% card.
Pay off the debt
The main purpose of a balance transfer is to save on interest charges in order to repay the debt faster. If you continually push back the full debt repayment, the transfer will have been useless. Do everything possible to pay off the debt as soon as possible as soon as it is transferred to the new card. Thus, you will not have much interest to pay at the expiration of the introductory offer.
Created on Feb 9th 2019 14:37. Viewed 195 times.