Maximize the potentials of a low APR credit
Wouldn't it be wonderful if all or at least most of your debt could be at a low or 0% interest rate? You might just be surprised to learn that this is possible.
First you need to be aware that only those with excellent credit will be eligible for 0%, and you might not know the rate you'll be charged when you first apply for the card. The rate will be determined by your personal credit rating.
Secondly, be very, very careful! Don't attempt this unless you understand all the trickery credit card companies use.
You've probably been barraged with offers of 0% credit cards in your postal mail, newspaper ads and e-mail. Many people have taken advantage of these offers at one time or another, often with great success. But many others have also been caught in up in the subtle enticements of the credit card companies. After all, they are in the business of making money. and they surely can't make much money at 0% interest (except on transfer fees). You need to ensure that you don't let your guard down and that you scrutinize every detail in the fine print of the contract, so that you don't let the wiles of the credit card companies slip inadvertently into and raise havoc with youf plan to utilize those low rates successfully.
To prevent this from happening, you must be diligent in following these guidelines:
1. Read the fine print, and then read it again. Dissect every term of the contract until you are sure of all potential costs involved.
2. Never transfer to a low interest card any more of an existing credit card balance than you know you can pay off on the new card before the special 0% rate expires. The rate on any balance that you can't pay off by that expiration date will automatically jump to a drastically higher interest rate without any advance notice to you, usually 18% and higher, depending on what the interest laws are in your state.
3. Always make your payment on time, and even earlier if you can, so you don't risk losing that low rate and paying a high late fee. Most credit card companies will charge a sizable late fee (usually $15 and up), and you will be required to pay that late fee if you are even a day late on your payment. the most important reason not to be late with your payment is so that your interest rate does not automatically balloon to the 18% or higher rate detailed in the fine print of your contract for the balance of your payments.
4. Do not use the low rate or 0% credit card for any additional purchases or transfers after the initial one until the first balance is paid off. You may be charged the higher regular interest rate of 18% or higher on any additional purchases or cash advances you add to the new card. Also, any payments you make from that point forward will be applied to the first balance only until that is paid off, before being applied to the amount with the high interest rate. The promotional 0% does not usually apply to any balances beyond the initial charge.
5. Most credit card companies charge a 3% service fee, or a maximum fee, depending on the amount, for balance transfers. Occasionally a balance transfer fee is not charged, but this is the exception on credit cards.
6. Mark your calendar with the expiration date of any promotional deals so that you don't run over the date into a high interest rate situation.
Be very careful or you could end up owing more debt than you started with. Also remember that you are liable for all terms of the contract whether you applied on line, over the telephone or through the U. S. Mail.
Only you know whether you can be disciplined enough to be successful at this plan. The best plan is to pay off your debts, stay debt free and leave your credit cards at home in a safe place for emergency use only.
First you need to be aware that only those with excellent credit will be eligible for 0%, and you might not know the rate you'll be charged when you first apply for the card. The rate will be determined by your personal credit rating.
Secondly, be very, very careful! Don't attempt this unless you understand all the trickery credit card companies use.
You've probably been barraged with offers of 0% credit cards in your postal mail, newspaper ads and e-mail. Many people have taken advantage of these offers at one time or another, often with great success. But many others have also been caught in up in the subtle enticements of the credit card companies. After all, they are in the business of making money. and they surely can't make much money at 0% interest (except on transfer fees). You need to ensure that you don't let your guard down and that you scrutinize every detail in the fine print of the contract, so that you don't let the wiles of the credit card companies slip inadvertently into and raise havoc with youf plan to utilize those low rates successfully.
To prevent this from happening, you must be diligent in following these guidelines:
1. Read the fine print, and then read it again. Dissect every term of the contract until you are sure of all potential costs involved.
2. Never transfer to a low interest card any more of an existing credit card balance than you know you can pay off on the new card before the special 0% rate expires. The rate on any balance that you can't pay off by that expiration date will automatically jump to a drastically higher interest rate without any advance notice to you, usually 18% and higher, depending on what the interest laws are in your state.
3. Always make your payment on time, and even earlier if you can, so you don't risk losing that low rate and paying a high late fee. Most credit card companies will charge a sizable late fee (usually $15 and up), and you will be required to pay that late fee if you are even a day late on your payment. the most important reason not to be late with your payment is so that your interest rate does not automatically balloon to the 18% or higher rate detailed in the fine print of your contract for the balance of your payments.
4. Do not use the low rate or 0% credit card for any additional purchases or transfers after the initial one until the first balance is paid off. You may be charged the higher regular interest rate of 18% or higher on any additional purchases or cash advances you add to the new card. Also, any payments you make from that point forward will be applied to the first balance only until that is paid off, before being applied to the amount with the high interest rate. The promotional 0% does not usually apply to any balances beyond the initial charge.
5. Most credit card companies charge a 3% service fee, or a maximum fee, depending on the amount, for balance transfers. Occasionally a balance transfer fee is not charged, but this is the exception on credit cards.
6. Mark your calendar with the expiration date of any promotional deals so that you don't run over the date into a high interest rate situation.
Be very careful or you could end up owing more debt than you started with. Also remember that you are liable for all terms of the contract whether you applied on line, over the telephone or through the U. S. Mail.
Only you know whether you can be disciplined enough to be successful at this plan. The best plan is to pay off your debts, stay debt free and leave your credit cards at home in a safe place for emergency use only.
