You see your credit card balance looks really good. But there is one thing about that credit card that you don’t know about. Before you find out how, make sure that you read all the fine print thoroughly. Let credit card balances compare to comparable cards and purchases. Otherwise, you simply won’t know anything.
Consider this situation: Paying 9.99% interest on another 4.99% credit card could result in paying 0.00% on your credit card balances and a hefty total of $489.95 + $529.50 for interest. If you’re lucky you could have spent around $489.95 just to pay off your credit card balances, but that’s not possible because credit card balances are averages! For comparison’s sake let’s imagine you have a $500.00 a year. If you paid a $489.95 credit card balance in October. That’ll be $599.02 at the end of the year. Your $500.00 a year balance will only cost you $983.22 last month and $1229.25 this year. Now you’ve saved $301.19 just by having paid off your credit card balance in October. You’re one step closer…
Look at this situation: Paying your $500.00 a year credit card balance only costs $95. What will it cost you if that credit card purchase costs you 40% more than the $599.02 full rate on your cardsaver? Compare this to the $894.24 when you pay down only the credit card balance to save an additional $29.25 on your card balances. You’ll end up saving $24.48 in interest over the year and a half. This is only 36% less than what you would have saved if you had paid off your credit card balances.
Make a note of the fee that will be charged when you use your credit card to transfer one or more balance from one card to another. You’ll find out that you will pay $8.18 in penalties if you transfer that old balance to another card after July 1, 2002, meaning you could save hundreds of dollars by paying off your credit card balance for a year and a half and saving another $68.42 in penalties over the year.
Also, make a note of the time when you will get to decide whether you should open an account with another card using your credit card. At some point you have to decide whether you really want the other card or not. So open an account with a new card on your account for 3 months and that new card will help you learn how to use that new card more effectively in today’s world. Also consider if you can afford the credit card charges. It’s good news that the credit card company gives you the option. If you’re in the market for a credit card and you’re being asked to pay them off with no rates, you should know that you can’t afford that card any more.
Now that you’ve read the fine print, compare it to the APR and things begin to click! Now that you’ve seen it all, it’s time to apply it to starting or maintaining a good paying job at the end of each month!
There are a few things you just have to remember when you apply for a credit card balance transfer! First, avoid paying too much interest on credit cards that may put you in a financial crunch that you cannot handle. Before you do that, read all the fine print so you can calculate how much is allowed for purchases and how much is allowed for balance transfers! If the credit card balance transfer card will take you quite a while, do not apply right away. The time may be worth up to 15 months if you can manage it one better. This can help you avoid applying late or miss payments! Keep in mind; the better a paying job you are in the end, the less interest you can charge on that credit card balance! And of course make sure the company you’re applying with is a reputable one!
The next thing is to double check your credit report as it includes major credit information. Some companies are reluctant to give out anything derogatory to their credit report because of criminal charges. This usually means that there just won’t be an inquiry from those that report negative information. Never give out your credit information in your name unless you know you there absolutely no problem to report it to!
The final step before applying for a free credit card balance transfer can be selecting your credit card with the most thought out way.