Kamis, 19 Juni 2008

4 Tips before you're making Balance Transfer

The offer from your credit card balances sounds like a pretty good business, is not it? And it is until your magnifying glass and start reading the small print to the offer. What many people do not realize is that the creditors who have such an incredible deal would not do if there is no other way to benefit financially. These lenders actually feel safe in the assumption that most people with the transfer of the balance is not respected, which may provide valuable data held by the offer.
The transfer of balances from a high interest rate on a credit card with no or a lower interest rate can save you a lot of money if you do not fall victim to these common errors.
1. Levy order
Rare is the balance transfer offer, not with a kind of balance. It is perhaps a lump-sum $ 50 or $ 75, but it is usually a percentage of the total amount of any balance. Maybe 3% does not sound like much, but if you several thousand dollars, that the charge may be hundreds of dollars!
Although you may know now on the lookout for such fees, it is something else you should look at: whether there is a limit to how much the balance transfer can go. Avoid people without caps. Before making an offer, which is always count. If the balance eventually transfer more than you have paid would be in the form of interest you did not have the transfer is made, it is not over!
2 Other interest
Even if little or no importance perhaps imbalance transfers, is still a new card that you have used to make purchases. Purchases, however, normally not part of the no or little interest. In fact, you can expect that the interest for the purchase or cash withdrawals are just as high or higher than the credit cards that are already used to shopping. If you seriously chipping away at your debt, which is really the best reason to take advantage of the transfer balance, you should really stop revenue credit card debt!
3. The payment allocation
If you have balances on the new account and you make purchases on this new credit account, you will be surprised that your payments are not assigned to your way of thinking (supposed). Suppose you $ 1000 and during the last month, new purchases in the amount of $ 200. They make a payment of $ 300 can clear away from the new taxes and chipping away at the transfer amount.
Next accounting period you will receive your statement and find that the $ 200 in new purchases is still there - and the number of new burdens that you since then. And all those purchases are compounding interest at the rate of 16, 19, 22% or more! What happened? Now, as the small, credit card your full payment on the balance zero interest, because - and it is not making money on that amount. But it is certainly in this new purchases!
4. Interest rate is set to intro
The low or no interest will not last forever and what you need to know how much they will increase when the deadline expired. Any remaining balance is likely to post whacked with a much higher rate. To ensure that this is the case - the savings negate the advantages that you collected so far - make sure you have a plan for paying off your balance before the rate increases. Also, make sure that you do not miss payments or too late. If you believe you can find - without warning - zero percent, no longer apply and you pay more interest than you were.

1 komentar:

erikko mengatakan...

having proper allocation of funds is important especially if you want to transfer balance from your old account to the new account

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