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Quick Tips: Credit cards and Balance Transfers

Quick Tips: Credit cards and Balance Transfers

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Advance Personal Finance

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Credit cards and Balance Transfer

Credit cards are cards used for payment of services and goods. They are issued to cardholders, promised by the cardholder to the card issuer to pay for amounts already paid out, plus some additional charges. Card issuers create accounts for the users as well as credit lines for users to enable borrowing of cash to pay for services and goods or load in cash in advance.

How to effectively use your credit card.

To maximize your use of your credit card and avoid high interests and costly fees. Below are some tips on how to.

Keep control of your expenditure: As convenient as credit cards are it can create inconvenient spending. To avoid racking up high debts on your credit card than expected, keep control of your spending. The ways to do this is regular checking of your credit card statements.

Pay your card on time: This will help cut on interest charges which arise from late payment. Therefore, immediately after receiving the credit card statement, make the payments before the due date.

Cut on credit limit: This will help in reducing your expenditure on your credit card. It can be done by asking the credit card provider to decrease your credit card limit.

Maximize repayments: Making minimum repayments on your credit card increases interest rates which lengthen balance payments. Therefore, plan on how to pay credit card debts with a higher amount than setting up a minimum payment monthly.

Credit card Balance Transfer

A balance transfer is a situation where one pays off balances on existing loans or cards by transferring the debts to other credit card account. Balance transfers helps save money and come with benefits related to the consolidation of debt

The process of a balance transfer.

Respond to the offer which requires you to indicate where the payments will be made to, their account numbers than the amount to be paid.

After approval, the company contacts the billers or creditors and then makes the payments as stated.

In the case of payments to be made before that time, make the payments by the due dates to avoid additional charges.

Credit card balance transfers attract a certain fee that is a certain percentage of the debt will be transferred.

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