| Credit Cards Balance Transfer Information |
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| Written by Thomas Goldman |
| Thursday, 04 February 2010 12:32 |
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Credit cards balance transfers made to new credit cards which have a 0% initial interest rate can be beneficial in 2 typical ways. One approach can save you a lot of money on existing debt, and the other approach can make you "free money"!
Credit cards balance transfers made to new credit cards which have a 0% initial interest rate can be beneficial in 2 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 ideal for those who already have borrowed money from such things as other credit cards or store cards etc. What you do is you move such borrowing onto the new account, thereby avoiding having to pay any interest at all for the initial period. This can be a huge improvement as the monthly repayments can be used to reduce the amount of the borrowing itself rather than just paying off the interest each month. The second approach is to use the money from a zero-interest card to put into high-interest paying bank accounts, and so make a profit, because the interest you receive is more than the zero interest you are paying on that balance. Such balance transfers have even been used by some people to fund other more risky types of investments including major internet company start-ups, and movies, but obviously, this carries a far greater risk and should be treated with extreme caution. 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. The periods of no interest can vary, and might even be applied differently to different types of transactions on the card. 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. For theses reasons and others, it is always sensible to make very sure you understand all the details of ay new account before you use it. 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. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about Credit Cards and how to use them to save or make free money. Stop by Thomas Goldman's money and finance article directory today (2000+ articles, more daily)! |
| Last Updated on Monday, 07 June 2010 10:05 |