Credit Cards Balance Transfers And How They Can Save Or Make You Money.
Credit cards balance transfers made to new credit cards which have a 0% initial interest rate can be beneficial in two typical ways. One approach can save you a lot of money on existing debt, and the other approach can make you "free money"!
The first of these methods is of huge benefit for people who already have borrowing especially on credit or store cards which charge high interest. Transferring these existing debts to new cards which don't charge any interest (for an initial period) can mean that you avoid any interest payments at all on that debt and can use the whole of each monthly repayment towards paying down the debt itself rather than merely keeping up with the new interest each month.
The second of these methods functions by transferring the available funds from the new 0% interest account into some form of savings account where you accumulate a profit. This approach has sometimes even been used for other types of investment with more risk such as business ideas. This can result in high profits when successful but with 90% of new businesses failing it is obviously extremely risky and should usually be avoided.
No interest offers can be used in these two great ways to make some financial progress. Be careful to check the details because sometimes the 0% interest only applies to purchases. Another area to carefully check is the rules on cash withdrawals if you ever use these. Sometimes these are charged a higher interest rate, and sometimes the interest is charged from the date you receive the cash rather than from the billing date. Also it is possible that repayments are applied to all other areas of borrowing before being applied to any cash advances.
The initial period for which there is zero interest can also be variable and can even be applied with different periods to different categories of borrowing.
It is wise to carefully check all the details of a card and make sure you understand them well before you consider obtaining a new account.
Credit cards balance transfers, if used carefully and wisely, can be a very good thing for ones finances, so check all the details and find out how you can apply these to your financial advantage soon.
The first of these methods is of huge benefit for people who already have borrowing especially on credit or store cards which charge high interest. Transferring these existing debts to new cards which don't charge any interest (for an initial period) can mean that you avoid any interest payments at all on that debt and can use the whole of each monthly repayment towards paying down the debt itself rather than merely keeping up with the new interest each month.
The second of these methods functions by transferring the available funds from the new 0% interest account into some form of savings account where you accumulate a profit. This approach has sometimes even been used for other types of investment with more risk such as business ideas. This can result in high profits when successful but with 90% of new businesses failing it is obviously extremely risky and should usually be avoided.
No interest offers can be used in these two great ways to make some financial progress. Be careful to check the details because sometimes the 0% interest only applies to purchases. Another area to carefully check is the rules on cash withdrawals if you ever use these. Sometimes these are charged a higher interest rate, and sometimes the interest is charged from the date you receive the cash rather than from the billing date. Also it is possible that repayments are applied to all other areas of borrowing before being applied to any cash advances.
The initial period for which there is zero interest can also be variable and can even be applied with different periods to different categories of borrowing.
It is wise to carefully check all the details of a card and make sure you understand them well before you consider obtaining a new account.
Credit cards balance transfers, if used carefully and wisely, can be a very good thing for ones finances, so check all the details and find out how you can apply these to your financial advantage soon.
About the Author:
Want to find out more about Credit Cards, then visit Thomas Goldman's new article directory, http://www.money-articles.net which contains hundreds of money and finance articles (more added daily).
You like it? Share it!
posted by DISCLAIMER: at
12:50 PM
0 Comments:
Post a Comment
<< Home