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September 26, 2009

Winning the Balance Transfer Game

Filed under: Finance — Tags: , — admin @ 1:18 pm

On the surface, the balance transfer credit card offers that we receive on a weekly basis seem like a win – win situation. The way this works is that you transfer your high interest balances from other credit cards to a new credit card that offers little or no interest for a designated time. Most balance transfer credits cards offer a low interest incentive for about 6 months.  Many companies will even give you 0% balance transfer for 6 months. In some ways, these credit cards can seem like a great thing, but it would be good for you to dig a little deeper to be sure that these balance transfer credit card offers don’t actually put you in a worse financial spot.

The appealing thing about balance transfer offers is that it enables you to put all or most of your credit card debt on to one card. The perks that come with the offer, such as low interest, can really help out; especially if your current credit cards come with the typical 15% or higher interest. But like any offer, when used responsibly, they can be great, but consider the downside as well. Even though this balance transfer credit card is interest free for about 6 months, this interest will go up if you don’t have the balance paid on the credit card by the time your grace period is up. If all of your debt is on one credit card, then you are paying interest on a much larger balance than you were when your debt was spread out a little. (more…)

January 1, 2009

Know about Credit Cards

While using Credit Cards offer numerous benefits, one needs to be careful on choosing a credit card and should understand the right way to spend thru it. Improper usage or spending beyond your limit may lead towards debt. Although a credit card offers the advantage of paying the dues in small amount or a minimum payment, the card holder should understand that paying just the minimum amount due would take years to clear off the dues.

Shopping and Safety

Credit Cards are widely used for online purchases or conventional shopping expenses. It eliminates the need of carrying cash which carries the risk of burglary. Even if you lose your credit card, the Credit Card companies offer the convenience of immediately calling them and disable the particular card. You may no longer be liable for purchases made after reporting the loss of card.

Money at the time of need

Credit Cards offer the benefit of withdrawing money from ATM which is of great help when you are outta money. Even If you don’t possess enough money you could still afford to buy your desired products through a credit card and pay money after few days (next billing cycle).

Reward points

Most of the credit cards offer flashy gifts which could be purchased thru the Reward points. When you make a purchase through your credit card, you gain some reward points. Based on the number of reward points you have, you could redeem it to buy gifts offered by your Credit Card Company.

Choosing the Right Credit Card

Choosing the right credit card is a chaotic job for any greenhorn. You need to compare various credit cards offered by different companies. You need to analyze the APR (annual percentage rate), interest free period, Cash Advance facility, Balance Transfer facility etc.

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