Above All, Use Your Card Intelligently

Category: Finance, Credit.

In our daily lives, we often encounter problems which concern the family, business, work, and many other things.

Most working professionals have credit cards, and sometimes these gives way to debt problems. The most commonly encountered quandary is financial problems. The best possible solution for most of them is to jump at an offer which promises a lower APR, but you should be extra cautious in dealing with such offers. This is usually taken advantage by most people because of its very low rate of interest compared to the old card issuer. A balance transfer simply means moving the balance from your existing credit card to another credit card. There are companies which make credit card their business, and competition among them is becoming more intense.

You have to be cautious in any decision that you will make. The need to stay in the market and stay competitive as ever, has brought about the introduction of balance transfer among credit cards. A good choice is one that offers zero percent APR, but this is just an introductory offer. So before making an abrupt decision, be sure that you have read all the terms and conditions of the card issuer. After a specified period, the interest rate charged changes. There are certain things to consider for a balance transfer with 0% rate: the interest rate after the 0% introductory rate expires. understand the fees, and conditions, terms. don' t forget the' fine print' ; most people skip that part, but it is equally important to read that part unless you want to pay unexpected fees in the future. simple reading is not enough, you must' understand' all the terms, conditions, rates, and other important matters. take note of the day when the introductory rate will end.

All you have to do is to move all your card balances to the new credit card bearing low rate of interest to achieve utmost savings. Applying for a balance transfer can also save you money. Some credit cards offer cash back, points or rewards when you make purchases using your new credit card. You also need to close your old credit card. You can make a balance transfer with your bank cards, gasoline cards, personal loans, charge cards, and department store cards. Once you sign up for a balance transfer, you should continue paying your debt while the balance is still pending. And finally, you need to close your account.

Call your old credit card issuer once the balance transfer is confirmed, and make sure that you get a 0 balance from your old company. Once you have your new credit card, don' t just make minimum payments. You can also make extra payments, and remember to never be late in making any payments. Pay more money each month until your balance reaches zero. Above all, use your card intelligently. Keep track of your expenditures so that you can minimize your bill. You should also be aware of the fees being charged for late payments, flat fees, cash advance fees, and fees for balance transfer, and fees charged if you exceed the credit limit.

If you constantly make unnecessary purchases, your debt is sure to grow rapidly. Be responsible in any action that you undertake, and think of its consequences.