Do you have good credit? Do you want to save money on credit card interest? Do you want to MAKE money off of your good credit? A properly done balance transfer can accomplish all these things. This article will show you how to make this an easy and money saving venture. Paying interest on credit cards is a big no no. Paying any interest is wasteful and needs to be addressed right away before your debt increases unnecessarily and credit score drops. The best and easiest way (aside from paying your credit card statement in full each month which can be difficult for many) is to open a new card with one of the many merchants that offers an attractive introductory balance transfer rate. It is easy to research where to find a good card that accomplishes this. You can search for and find introductory offers with every major credit card company. The key is to find a card that is with a different company than your original card and offers attractive terms. I never pay an annual fee and found my last card on http://www.creditmenu.blogspot.com/ . It lists all the available cards on the market today.
After finding a good card (one with at least a minimum of 0% for 12 months), you want to apply and wait to see what credit line is offered. If you credit is good enough, you will receive a credit line greater than the one you have with the card that is about to accrue interest. When this happens, you want to transfer the full credit line to the original card. This will cause a credit refund to be made on the card that you will be closing. You are able to receive a check in the mail for the overpayment and this can be used for the minimum payments on the 0% card you just opened. I like to keep this extra cash in a savings account and MAKE money on this transaction.
You always need to weigh fees (usually cards have a 3% transfer fee, although discover and other companies have started charging 4% transfer fees) with how much you will make on the interest. If you are about to accrue a 20% interest rate on your original balance then paying the 3 or 4 percent fee to move the balance to a 0% card is a sensible and smart option. Paying 4% for the whole year is a lot better than the daily compounding interest that is charged on even a 12 percent credit card!
After finding a good card (one with at least a minimum of 0% for 12 months), you want to apply and wait to see what credit line is offered. If you credit is good enough, you will receive a credit line greater than the one you have with the card that is about to accrue interest. When this happens, you want to transfer the full credit line to the original card. This will cause a credit refund to be made on the card that you will be closing. You are able to receive a check in the mail for the overpayment and this can be used for the minimum payments on the 0% card you just opened. I like to keep this extra cash in a savings account and MAKE money on this transaction.
You always need to weigh fees (usually cards have a 3% transfer fee, although discover and other companies have started charging 4% transfer fees) with how much you will make on the interest. If you are about to accrue a 20% interest rate on your original balance then paying the 3 or 4 percent fee to move the balance to a 0% card is a sensible and smart option. Paying 4% for the whole year is a lot better than the daily compounding interest that is charged on even a 12 percent credit card!
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