Transfer Balances To Save Money

Transfer Balances To Save Money. If you have high interest credit card balances it can be to your financial benefit to transfer them to lower interest cards to save money.

transfer credit card balances to save money

And you wouldn't be alone, as a majority of people in the US have more debt than they can manage.

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. Here's how to go about it...

Ways To Transfer Balances To Save Money

Consider Teaser Offers
The credit card industry is very competitive, so credit card companies will offer massive discount rates - commonly referred to as teaser rates - to encourage you to 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 calendar, 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.

Pay Attention To 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.

So, use this strategy of transferring balances sparingly; and when you do, instead of simply paying lower payments continue paying higher payments so that you can pay off the balances faster. And the faster you do that the sooner you can get to getting out of debt, saving money and accumulating money - which is the ultimate goal of transferring balances to save money.

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