When we talk about credit cards, the first image that hits our mind is of a plastic card. It is often meant to accumulate crushing debt. This accumulated debt needs to be paid with high rate of interest. However, it is not the case always.
Credit cards are one of the most significant financial instruments. They can gain rewards and discounts on wide range of purchases.
You should use credit card wisely & optimally by paying your credit card debts properly on time. Here are 20 hidden credit card tricks to save money:
(1) Balance Transfer Plan
It is one of the best yet hidden credit card tricks to save money. Due to severe competition in credit card industry, credit card companies are offering amazing balance transfer plans on them. It is strategy to build a strong base of credit card holders.
You can easily get 0% or low APR (Annual Percentage Rate) on the balance transferred from one credit card to another for a limited promotional period.
However, you should not forget to perform a cost benefit analysis before executing this plan for any hidden fee like balance transfer fee (mostly 3% of total debt).
You should also compare the non-promotional APR with your old credit card’s APR. It will help you to analyze the benefit of credit card balance transfer plan if you are unable to pay off your debt entirely before promotional rate period is over.
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