Credit Cards Balance Transfers And How They Can Save Or Make You Money.
January 23, 2010 by Thomas Goldman
Filed under Debt
Credit cards balance transfers made to new credit cards which have a 0% initial interest rate can be beneficial in two typical ways. One approach can save you a lot of money on existing debt, and the other approach can make you \”free money\”!
The first of these methods is of huge benefit for people who already have borrowing especially on credit or store cards which charge high interest. Transferring these existing debts to new cards which don\’t charge any interest (for an initial period) can mean that you avoid any interest payments at all on that debt and can use the whole of each monthly repayment towards paying down the debt itself rather than merely keeping up with the new interest each month.
The second approach is to use the money from a zero-interest card to put into high-interest paying bank accounts, and so make a profit, because the interest you receive is more than the zero interest you are paying on that balance. such balance transfers have even been used by some people to fund other more risky types of investments including major internet company start-ups, and movies, but obviously, this carries a far greater risk and should be treated with extreme caution.
So zero-interest credit cards can be used in either of those ways, to increase your financial progress. Some zero interest cards only apply zero interest to purchases, some only to balance transfers, and some to both. Also, some cards charge a different rate of interest on any cash withdrawals, and sometimes charge interest on cash from the time it is received rather than the billing date, and additionally sometimes apply any repayments to anything else before the cash balances.
Also, the periods of no interest can vary, and might even be applied differently to different types of transactions on the card.
For theses reasons and others, it is always sensible to make very sure you understand all the details of ay new account before you use it.
Credit cards balance transfers, it used wisely and sensibly can be of great benefit to a persons finances as this article has shown, so see how you can use one to your benefit, soon!
Looking to find the best deal on Credit cards, then visit www.credit-card-zero.com to find the best advice on Credit Cards Balance Transfers and how to use them to save money or make a profit.
