Credit cards balance transfers made to new credit cards which have a 0% initial interest rate can be beneficial in two typical ways. One approach can save you a lot of money on existing debt, and the other approach can make you "free money"!
The first approach is for people with balances on credit cards which are charging interest. If you transfer those balances to credit cards which charge zero interest (for an initial period) then you avoid having to pay any interest on those balances, so you can use all the repayments to pay down the balances themselves rather than paying any interest.
The second of these methods functions by transferring the available funds from the new 0% interest account into some form of savings account where you accumulate a profit. This approach has sometimes even been used for other types of investment with more risk such as business ideas. This can result in high profits when successful but with 90% of new businesses failing it is obviously extremely risky and should usually be avoided.
So zero-interest credit cards can be used in either of those ways, to increase your financial progress. Some zero interest cards only apply zero interest to purchases, some only to balance transfers, and some to both. Also, some cards charge a different rate of interest on any cash withdrawals, and sometimes charge interest on cash from the time it is received rather than the billing date, and additionally sometimes apply any repayments to anything else before the cash balances.
The initial period for which there is zero interest can also be variable and can even be applied with different periods to different categories of borrowing.
It is wise to carefully check all the details of a card and make sure you understand them well before you consider obtaining a new account.
Credit cards balance transfers, it used wisely and sensibly can be of great benefit to a persons finances as this article has shown, so see how you can use one to your benefit, soon! - 31377
The first approach is for people with balances on credit cards which are charging interest. If you transfer those balances to credit cards which charge zero interest (for an initial period) then you avoid having to pay any interest on those balances, so you can use all the repayments to pay down the balances themselves rather than paying any interest.
The second of these methods functions by transferring the available funds from the new 0% interest account into some form of savings account where you accumulate a profit. This approach has sometimes even been used for other types of investment with more risk such as business ideas. This can result in high profits when successful but with 90% of new businesses failing it is obviously extremely risky and should usually be avoided.
So zero-interest credit cards can be used in either of those ways, to increase your financial progress. Some zero interest cards only apply zero interest to purchases, some only to balance transfers, and some to both. Also, some cards charge a different rate of interest on any cash withdrawals, and sometimes charge interest on cash from the time it is received rather than the billing date, and additionally sometimes apply any repayments to anything else before the cash balances.
The initial period for which there is zero interest can also be variable and can even be applied with different periods to different categories of borrowing.
It is wise to carefully check all the details of a card and make sure you understand them well before you consider obtaining a new account.
Credit cards balance transfers, it used wisely and sensibly can be of great benefit to a persons finances as this article has shown, so see how you can use one to your benefit, soon! - 31377
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Looking to find the best deal on Credit cards, then visit www.credit-card-zero.com to find the best advice on Credit Cards Balance Transfers and how to use them to save money or make a profit.
