If you're like most people, you have plenty of credit cards, and
you receive and endless supply of offers for more. The credit
card industry is so competitive that, whatever card you have,
the chances are that somewhere out there is one that would be
cheaper or better for you - and one of the best advantages is
that you can change cards as often as you like.
Try Some Teaser Offers
To try and get new customers, credit cards companies are still
offering massive discount rates when you transfer balances over
to them. These 'teaser' rates will only last for a set period
(check the terms and conditions), but they can still save you a
lot of money - especially if you switch to another card's teaser
rate each time one ends.
Yes, this does mean applying for a new card relatively often -
but if you do it online, you'll find it's quite painless. Is it
really worth hundreds of dollars to save the trouble of applying
for a new card?
Extend Your Offers
You might not even 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, in an effort to get you to
stick around.
Check the Small Print
You might find 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. A common trap is for a card to
allow you to transfer your balance of thousands at 0% APR, only
to charge you 20% or more on anything new you buy with it. Of
course, as soon as you ditch that card and move to the next, the
new purchases become a balance transfer again.
A more nasty thing you might find is that you're signing up to a
minimum term to get the teaser offer - they won't let you
transfer your balance away again for a year, or even more. Avoid
these cards like the plague.
Keep Track of Time
Your card issuer isn't going to go out of their way to alert you
when your teaser rate is over. Make sure you keep track: make a
mark on the calendar. Months can go by far more quickly than
you'd think, and missing the end of the teaser period by even a
day will mean that you'll end up paying interest at the normal
rate.
Moving Around and Your Credit Rating
Moving debt around between cards often affects your credit
rating in an odd way. On the one hand, it shows that you could
be an unprofitable customer - after all, you change cards before
they can make a profit from you. On the other hand, it also
shows that you're likely to take up offers that you're sent, and
companies tend to believe that they have a great strategy to
keep you with them where others have failed.
In other words, some companies will hate you for it, and some
will love you. Bear in mind, though, that the longer you do it
for, the fewer companies will want to send you their very best
teaser rates.
About the author:
Original Source:
Articles-Galore.com
Information supplied and written by Lee Asher of The Home Income Portal
Home of Serious Online Business Options.
