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Using Credit Card Balance Transfers to Your Advantage |
Your credit card company may from time to time send you balance transfer checks. While many of us choose to ignore these some of them can provide tremendous opportunities to save on interest rates.
Your credit card company may from time to time send you balance transfer checks. While many of us choose to ignore these some of them can provide tremendous opportunities to save on interest rates.
When you do receive balance transfer checks in the mail take a look at them and study the terms and conditions. Often times you will be able to take advantage of an extremely low interest rate that is being offered. Keep in mind though, that this interest rate typically only last for a certain period of time. That is because most balance transfer checks are sent out by credit card companies as promotional offers.
It's also a good idea to call the number that you receive in your balance transfer check package to discuss the particulars of the offer in detail with a live representative.
If the interest rate on the balance transfer checks is low enough, then you may have an opportunity to effectively lower the interest rate of all or a portion of your remaining balance on another credit card. For instance, if you happen to have a $2000 balance on another credit card and your interest rate is 24% then doing a balance transfer at a 9% promotional rate can save you money.
When using credit card balance transfers just to be certain that you understand what your rate will be after the promotional period has expired. If the after promotional rate is still lower than the rate of the card you transferred the balance from then you are still coming out ahead.
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