Articles on Debt | Topics: debt, debtor
by Rashad Evans
Moving Debt Between Cards Can Save You Money.
If you're like most people, you have plenty of credit cards, and you have stacks of offers for more. The credit card industry is so competitive that, whatever card you have, the chances are that somewhere out there is one that would be cheaper or better for you – and you can change as often as you want!
Take Up Teaser Offers.
To try and get customers, credit cards are still offering massive discount rates when you transfer balances over to them. These 'teaser' rates will only last for a set period (check the terms and conditions), but they can still save you a lot of money – especially if you switch to another card's teaser rate each time one ends.
Yes, this does mean applying for a new card relatively often – but if you do it online, you'll find it's quite painless. Is it really worth hundreds of dollars to save the trouble of applying for a new card?
Extend Your Offers.
You might not even need to move to another card to get a teaser offer for longer. If you phone and ask, many lenders will extend the preferential rate for longer, in an effort to get you to stick around.
Check the Small Print.
You might find that the 'low, low rate' only lasts a few months, and you might also find that it only applies to balance transfers, not new purchases. A common trap is for a card to allow you to transfer your balance of thousands at 0% APR, only to charge you 20% or more on anything new you buy with it. Of course, as soon as you ditch that card and move to the next, the new purchases become a balance transfer again.
| Historical Quote |
Good government cannot be found on the bargain-counter. We have seen samples of bargain-counter government in the past when low tax rates were secured by increasing the bonded debt for current expenses or refusing to keep our institutions up to the standard in repairs, extensions, equipment, and accommodations. I refuse, and the Republican Party refuses, to endorse that method of sham and shoddy economy.
| —Calvin Coolidge (1872–1933) |
|
|
A more nasty thing you might find is that you're signing up to a minimum term to get the teaser offer – they won't let you transfer your balance away again for a year, or even more. Avoid these cards like the plague.
Keep Track of Time.
Your card issuer isn't going to go out of their way to alert you when your teaser rate is over. Make sure you keep track: make a mark on the calendar. Months can go by far more quickly than you'd think, and missing the end of the teaser period by even a day will mean that you'll end up paying interest at the normal rate.
Moving Around and Your Credit Rating.
Moving debt around between cards often affects your credit rating in an odd way. On the one hand, it shows that you could be an unprofitable customer – after all, you change cards before they can make a profit from you. On the other hand, it also shows that you're likely to take up offers that you're sent, and companies tend to believe that they have a great strategy to keep you with them where others have failed.
In other words, some companies will hate you for it, and some will love you. Bear in mind, though, that the longer you do it for, the fewer companies will want to send you their very best teaser rates.
|
We strive to provide
only relevant articles on our website. If
there is a specific angle on debt that you would like us to cover, please contact us here.
Please note: All personal opinions expressed in the "Moving Debt Between Cards Can Save You Money" article belong to the contributing author and are not necessarily shared by LoansCreditConsolidation.com. |
The Mystery of Mortgages
By Ruiz
The world of mortgages can be very overwhelming when you first look at all of the options. There are so many terms, regulations, different fees, options, and different forms that it can become very confusing....
Debt To Income Ratio
By Dale Quinn
Credit cards first entered my life during my freshman year of college. My first plastic way of paying for things gave me a credit line of $500....
Don't Save When You Have Debt
By Bansari Silva
Don't Save When You Have Debt. Humans are funny creatures....
Student Credit Cards
By Quinn Deleon
Have you ever stopped to think about how massive the responsibility is for parenting our children? Unfortunately many people do not think about the responsibility and do not take the job seriously. There are many children that get very little guidance from their parents so they turn to others or rely on themselves....
The Pros and Cons of Consolidation
By Zackary Bowers
4 Pros and 4 Cons Debt consolidation is one of the most important financial decisions some people will face in their lives. When debt begins to overwhelm your life, bills seemingly coming at you from all angles, the idea of simplifying your debt into one manageable bundle seems enticing....
Closing the Deal: Plowing through the Mortgage Paperwork
By Wilbert Townsend
8 Things the Mortgage Lender will want to know Paperwork can be trying at even the best of times. It can take tons of time to fill out loan applications and you might ask yourself why they need such detailed information? But you need to remember that this is one of the biggest purchases you will ever make it your life, and you should take the time to ensure that your application is complete and accurate....
|
