Tuesday, April 8, 2008

Taking Advantage of Balance Transfer Offers

A few days ago I mentioned taking advantage of credit card balance transfer offers. I recently received an offer for zero percent interest for nine months with no balance tranfer fee on my Citi Professional Card. Because I already had an active balance on the card, I first needed to pay off the balance or I would continue to pay interest on the existing balance, because any payments made would be applied to the zero percent transfer amount then applied to the next lowest interest rate offer until they were paid in full.

I had to first tranfer my remaining balance on the card to another card temporarily so that I had a clean slate before I could take advantage of the balance transfer offer. Once my account showed a zero balance, I moved the "temporary" card balance back to the card with the zero percent offer, along with any remaining balances on my other cards. I made a reminder in my calendar to either pay off the balance in full (or transfer it to another card) in November before the zero percent offer will expire. Consolidating existing balances onto a single card with nine months of no interest will save me several hundred dollars and chances are I'll be able to use another balance transfer offer when this one expires to continue the interest savings cycle until everything is paid off in full!

From now on, any future purchases will be paid with a points/rebate related card and that card will be paid in full every month rather than carrying a balance.

No comments: