0% balance transfer credit cards - too good to be true?
Shine india monthly magazine Let us start with a very typical credit scenario. Imagine having a $10,000 outstanding balance on a credit card with a 10% annual apr, translating to $1000 in finance charges on a yearly basis. On the other hand, imagine securing a credit card that offers you 0% on balance transfers for the first year of membership. Transferring your card balance to a 0% balance transfer offer would cut down your annual interest expense by $1000. Exciting, isnt it? But did you bother to check what the interest rate would be after the introductory interest-free period? The rate might turn out to be significantly higher than your existing card, and you do not want to be caught on the wrong side of a high apr. Forewarned is forearmed. You will need to plan ahead – and not just a day or two before the interest-free period comes to an end. Some consumers might be surprised to discover that when an introductory apr offer expires that the rate of interest can revert retroactively to an apr of 23% and beyond. If you do not pay off your balance systematically and end up with a large balance when the introductory offer expires, many times consumers are stuck paying out an outrageously high apr because they did not pay down their card balance at all. So above all, make sure to plan on paying off that balance before the introductory period expires or you may regret it shine india monthly magazine telugu.
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