How do you use credit cards wisely when transferring balances?

Question

I was told that if you have several high credit limit cards and you transfer balances here and there that you could actually end up using your credit and still not have to put money on the balances until of course you cannot charge anymore. Is this true? Can I transfer balances if I'm in a bind...to hold onto some money then pay the balances off when need be? Is there a good way to manipulate the credit card system?

Thanks. :)

F.Y.I...I am financially stable...I just wanted confirmation that transferring balances could actually work considering I found this kind of hard to believe when I was told that it really does work.

Answer 1

Some credit cards offer lower interest rates (sometimes 0%) for a few months on balance transfers. Usually, these offers are for new cardholders only and they will still charge you a balance transfer fee.

Still, if you read all the fine print, do your math correctly and do everything right, you might be able to make the system work in YOUR favor instead of the banks'. Just be careful or you'll end up paying more than you would have otherwise. Read on:
http://www.bankrate.com/brm/news/cc/20070611_balance_transfer_credit_card_a1.asp?prodtype=cc

Answer 2

Transferring balances to a low interest credit card is a widely prevalent practice. But, is every available balance transfer credit card the same? A good look at the offers and you will find that some of them surely standout from the crowd. What makes them different and more lucrative? Here are 5 factors that will help you select a balance transfer credit card that will prove more beneficial than others.

1. Earlier it used to be 0% Intro APR on balance transfers for a specified period, but now it is gone. It is very rare to find a balance transfer credit card with 0 % Intro APR. So, the next best thign is a low APR for balance transfer. There are many credit card which offer balance transfer at APRs ranging from 4.5% to 7% for a limited period and a regular APR after that.
2. It is good to have a low APR balance transfer but if a credit card offers a low APRon balance transfer for a very short period of time, it is better to look for another. Low balance transfer APR for the life of balances is a good option to have. Read more from: http://www.credit-card-gallery.com/credit_card_balance_transfer.html

Answer 3

Things to be aware of when doing a balance transfer (BT):
There may be a BT fee
They expect you to make a monthly payment
If you BT to one card that already has a balance from regular charges or you make regular charges after the BT, the payments you make will go to the BT amount "first". Any charges you make, or had made, will continue to accrue interest at the normal interest rate for that account.


So, never BT to an account that already has a balance and never use a card, that you BT to, until the BT is fully paid.

Be aware of the BT terms - fees, interest and the length of time you have to pay it off, etc.

Answer 4

they are going to charge you $60 flow fee ($2000 * 0.03 is $60). the finished stability will substitute into $2060. If this is 3 hundred and sixty 5 days to pay without pastime, you will ought to pay $172 a month.

Answer 5

only one piece of advice for credit cards, have the money before you spend it.