Friday, March 12, 2010

The Real Risks in Balance Transfer Credit Card Checks

There are popular apprehensions among credit card users whether balance transfer checks are beneficial. The credit card season is generally from November through February and credit card companies would be approaching you with balance transfer check offers.

There are popular apprehensions among credit card users whether balance transfer checks are beneficial. The credit card season is generally from November through February and credit card companies would be approaching you with balance transfer check offers. You may receive a phone call, or SMS message, or again you may find in your email box offers for balance transfer check offers. Though regular posts are very rare now, you may even receive mails with the offer of balance transfer checks. Or, even the representatives of the credit card companies may approach you with this offer.

With Attractive Offers

Most often these balance transfer check offers are with attractive features. Sometimes they may be with 0% balance transfer. Or, they may be with very low percentage, say 2% or 3.5% and so and hence you can very well use the check to pay off your old debt and can gain in the deal. Hence, in this count the balance transfer check offer will be beneficial for you provided you make use of the offer prudently. Then you can manage you credit card debt more profitably


More Beneficial If

The Transferred Amount Is Big

As the balance transfer check can be credited to your account, you can make use of the money for your more profitable investments. This adds to your capital base. Suppose your outstanding balance rate is 12% and you owe 10000 dollars and the new balance transfer check is for a low rate of 3.99%. Then you can credit the check to your account and can use the amount for your more profitable business deals and can make good profits and can pay back easily the balance amount which now has only a low rate of interest.

Beneficial For Better

Credit Management

A balance transfer check is beneficial in another way also. You can credit the check to your personal account and can use the amount for the better management of your other existing credit card debts. Suppose the interest rate of your balance transfer check is 4% and you have a few other debts which are at higher rates above 10%. Then you can make better use of this facility to manage your credit card debt. By this, you can very well save the higher rate of interest that you owe to the other card companies. This is definitely a beneficial aspect of balance transfer checks.


You Can Capitalize On

The Balance Transfer Check

This is another benefit of the balance transfer check. You can deposit the check in to your personal account and can withdraw for the purchase of some of your valuable assets. It the amount is good enough, you can use it for purchasing some of your necessary assets like car or can meet other expenses like repayment of the loan for your residential unit. Sometimes the balance transfer check is at 0% interest and in that case it will be really worthwhile. You can use the money for holiday shopping or other beneficial purposes of your choice.

You can utilize the balance transfer check for other beneficial purposes like home improvement. You can credit the check to your personal use and can use the mount for buying furniture or home appliances. You can also use the amount for the modification of your house. Or, you can use the money for more profitable uses like the completion of your house or any other construction purpose

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