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your credit card that has an APR of 12.99 % another credit cards advertising an introductory rate of 4.99% for
a period of six months with a 4 % balance transfer fee. On you old credit card, you pay a total interest of $64.95. If you transfer this amount to the new
credit card, adding the transfer fee of 4 % ($40) and the interest in 6 months at a rate of 4.99 % (which is $24.95), the total amount you pay on the new
card is $64.95.
Your old credit card and new one have the same rate, they are just worded differently. Whenever you are offered low introductory rates on a credit card,
take note of the regular rate that will kick in after the introductory period ends. In our scenario, if the balance is not paid in full by the end of the
6 months, and the APR is greater than your old credit card APR (greater than 12.99 %), you end up paying more transferring the balance to the new card.
Credit card companies usually charge different rates on cash advances and purchases. The low introductory rate may only apply to the balance transfers.
Read the fine print. You do not want a credit card that offers a low introductory rate on balance transfers when you are looking for one for purchases.
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If you need a specified amount of time to raise the funds to pay off a balance and you have done the math and found that you will save more money
transferring the balance or making a new purchase on the credit card that offer a low introductory rate then, a no or low introductory rate credit card
would be the best pick for this situation. Keep in mind, a late payment during the introductory period can lead to higher rates.
When to Pick a Card That Offers Great Rewards or Cash Back
According to consumer reports 85 percent of U.S. households participate in at least one
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