If you want to avoid paying interest on your credit card charges, you can take advantage of 0% introductory balance transfer offers. You can also limit your spending to earn bonus miles or points. But how do you take advantage of these offers? Here are a few tips:
Avoiding revolving balances to take advantage of credit card bonuses
Many people apply for an American express platinum card, assuming they will pay it off in full each month. Unfortunately, life sometimes gets in the way and you might find yourself carrying a balance from one month to the next. In such situations, you should avoid revolving balances, as they may cause your interest rate to increase. If you do not pay off your balance on time, you could be paying interest on your balance for a long time.
Avoiding revolving balances is a good way to maximize the rewards from your credit cards. Revolving balances can negate any rewards you earn, as you have to pay off the interest on top of your existing purchases. Paying off your balance each month will allow you to maximize your rewards. However, some issuers may have restrictions on what you can spend in certain categories, so it’s important to check these policies before using your credit card.
Limiting spending to avoid paying interest on credit card charges
If you’ve been overspending on your credit cards, you know how costly it is to pay interest. Many credit card issuers will charge you a fee for going over your credit limit, but the CARD Act of 2009 has made this practice illegal. Even if they do charge you an over-limit fee, you shouldn’t pay it more than once per billing cycle. However, there are ways to avoid over-limit fees.
Generally speaking, the best way to avoid paying interest on credit card charges is to pay your bill in full each month. However, if you can’t afford to pay your entire balance each month, you can limit your spending to certain categories. A credit card with rewards is the best option if you usually use it for everyday purchases. You can earn points, airline miles, and retail dollars for using your card to make purchases. Just make sure you don’t exceed 30% of your available credit limit.
Taking advantage of the 0% introductory offer on balance transfers
Credit card issuers and banks only approve balance transfers when you have excellent credit. That means people with average credit will not be eligible for advertised credit lines. It is important to weigh the cost savings of the 0% introductory offer against the time it will take to pay off your balance. Taking advantage of a bonus credit card can help you save thousands of dollars over the course of your loan.
While the introductory period for most credit cards is 45-60 days, if you want to take advantage of the offer, you must complete the transfer within the promotional period. This period can vary depending on the credit card, so make sure to check the length of the offer before you transfer a balance to another account. The longer the promotional period, the more time you’ll have to pay off the balance. On the other hand, if you’re in a hurry to pay off your balance, opt for a card with a shorter promotional period.