Transfer Balances To Save Money

Credit Card Marketing Report #16
Transfer Balances To Save Money

Do you have credit card debt?  Then transfer balances to save money! 

A majority of people in theUS have moe debt than they can manage and can benefit from transferring balances, too. There are countless companies offering credit cards with enticing features, due to the competitiveness of the credit card market.  So, take advantage of it.  Transferring balances is legal and you can take advantage of it as many times as you want.

Consider Teaser Offers. Given the competitive nature of the credit card industry, credit card companies offer massive discount rates  - commonly referred to as teaser rates - when you transfer balances to them. And although these ‘teaser rates will only last for a certain period, they can still save you a lot of money. These savings can be extended if you switch to a new card often, which has become easier due to the power of applying online. Though it may be a hassle, you can literally save hundreds of dollars simply by switching cards.

Ask For Offer Extensions. There are situations where you don't need to move to another card to get a teaser offer for longer. If you phone and ask, many lenders will extend the preferential rate for longer, as any extra time they can keep you is profitable for them. But the key here is to ask for what you want, because you may never get it if you don't.

Pay Attention to When You Transfer Balances To Save Money. It's in your card issuers interest not to alert you when your teaser rate is over. So, keep track by yourself,; mark it on your calender, in your day planner or even set it up as an alert on your cell phone. You can lose time faster than you think, and missing the end of the teaser period by a single day means that you pay interest at the normal rate...and sometimes even higher.

Be Cautious About the Small Print. It is exceedingly common that the ‘low, low rate only lasts a few months, and you might also find that it only applies to balance transfers, not new purchases, an important distinction. One tactic is for a card to allow you to transfer your balance of thousands at 0% APR while charging you 20% or more for any purchases afterwards. An even meaner tactic to avoid is cards which don't let you transfer for a year afterwards, thus meaning you spend a good deal of time out of the teaser rate.

How These Actions Affect Your Credit Rating. 

Moving debt around does have an effect, although it isn't straightforward and can have an interesting effect. One effect is that it marks you as an unprofitable customer, as you will transfer before they can charge heavy interest. However, it also marks you as someone who takes up offers easily. Overall, the more you do it, the fewer good offers you receive, and the unprofitable-customer effect will eventually prevail.