Why 0% Balance Transfer Are A Great Way to Improve Your Financial Outlook In 2016

Paying a high interest rate on your credit card balance can eat away at your finances, especially if you have a large credit card balance. However, it may be hard for you to wipe off your credit card debt if a large part of your finances is going towards paying off your interest rather than paying off the principal balance on the card. In order to get yourself out of this situation, you can opt to transfer your credit card balance to a card that charges a 0% interest on your card balance. This will help to improve your financial outlook in 2016 in several ways.

Getting a 0% balance transfer is advantageous because it shows that you have a good credit score. Often, people with a bad credit score are not approved when they apply for the cards. If you have a bad credit core but you would still like to take advantage of this offer, the best way to get around this is by adding one of your friends or relatives as a co-signer on your card.

Carrying out a balance transfer will make it much easier for you to keep track of your credit card debt. This is because you can transfer balances from multiple cards to one card. This means that you can just focus on clearing the balance on that card, rather than trying to keep up with paying balances on multiple cards. This will be less stressful for you.

Having the card will cap your spending. This is because most card issuers will discourage you from using your new card to make new purchases. If you go ahead and use the card to make purchases then you will be charged a regular interest rate for the purchases that you make using the card. Not making any new purchases will help you to spend less and get out of debt faster.

You can take advantage of the 0% balance transfer offer to clear any high interest credit card balances that you have. It would be especially great if you can get a balance transfer with a 0% transfer fee or a transfer fee that is as low as possible. Make the balance transfer if you are planning to clear your credit card balance before the 0% interest free period is over.

You can take advantage of balance transfer to get yourself out of a financial jam. If you find yourself in a bad financial situation, you can use your regular credit card to pay for the expenses and then transfer the balance to a 0% credit card. This will give you ample time to clear the balance and get yourself out of a bad financial position. Just remember that you have to be responsible and organized, so as to pay off this balance before the interest free period is up.

Citigroup makes the double cash back credit card easier to obtain for consumers with good credit scores

Ever secretly wished the cash back on your credit card was bigger? Well, with the new credit card from Citigroup, it’s possible, but only if you have good credit card score. Bumping the cash back up to 2% across all purchases, the Double Cash credit card, for example, will surprise you with the highest cash back reward. This is great news for consumers who are searching for high rewards rate which iwill not be complicated to obtain and use. A 2% rewards rate, makes the Citi Double Cash one of the most popular credit cards today.

This card has a new earning structure, which lets you rack up 1% back on all your purchases, but then an additional 1% when you pay your monthly debt off. Moreover, there’s no boundary as to the rewards you can earn, so you can earn unlimited 2% cash back every month.

This is how this structure works:


You’ll receive 1% cash back per every dollar spent
You’ll receive an extra 1% cash back per every dollar you pay off
You’ll benefit from a $0 annual fee

This is really a high rewards rate that is worth considering. Taking for granted that you pay off your balance in full every month, you basically get 1% back twice. That’s one of the highest current rewards rates on the market. Honestly, there are many competitive and attractive credit cards that offer similar cash back program, however, most do not offer a zero annual fee.

Since we have always been advocates of accountable credit card use, it’s nice to see a card that provides an incentive, or a bonus, to liquidate your charges in a timely manner. Even though you can pay back your balance over time and still earn the 1% cashback, the faster you pay off, the faster your rewards are acquired. As we have already mentioned, there are no limits to rewards earnings, all the Citi Double Cash Card’s rewards are truly limitless. The only limit to keep in mind is your ability to pay off your debt at the end of the month.

We personally reviewed the pro’s and con’s of this credit card and fell in love with the 2% cash back rate and zero annual fees. The only cons worth mentioning however, are:

Unusually high interest rates, making it highly inadvisable to borrow on this card.
High foreign exchange fee of 3%, making it inadvisable to use the card abroad.
Not only you have to pay off on time, but you also have to pay your debt in full to benefit from the full 2% cash back and at the same time not lose money in paying high interest.

Who should consider the Citi Double Cash Card?
Taking into account everything mentioned above, the new credit card from Citigroup is a fantastic choice if you’re looking for a card with a higher cash-back rewards system, if you have a good credit card score, and are confident, you can pay off your card every month.

Sometimes Juggling Credit Card Debts Leads To Bad Financial Lifestyles

Millions of Americans took advantage of special zero interest promotions during the holiday shopping season. Many of these cards were offered by major retailers, but just as many were offered by the major credit card companies in 2015, and the trend continues today. These cards tend to promote heavy spending on these cards, want that brand new 60 inch TV? No problem simply swipe your card, hey it’s zero interest whats the harm right? Yet these cards often come with hidden unforeseen problems. People should be cautious before signing up.

These cards work by offering a no interest period. If you pay off your balance before this period ends you will in fact have zero interest owed. Yet buried in the contract is always a provision stating that if you do not pay off your balance in full before this promotional period ends you will in fact be hit with deferred interest rates. This happened to me with Pay Pal Credit, I waited to long to pay it off and owed over $240 dollars in interest on my “promotional zero percent interest purchases”. This can easily happen to anyone. It is oh so easy to simply swipe your card and not pay attention to the overall balance owed.

To avoid this problem you should not be pressured at the cash register to sign up for these promotions, and if you are reviewing an online application for a credit card offering this promotion, you should first consult your budget. You will need to pay back anything you charge on these type of credit card offers by the end of the promotional period, and this is where your budget comes into play. You need to first figure out before spending if you can indeed pay it back within the allotted time. If you cannot pay back this interest before the promotional period ends, you then need to ask yourself if you can live with the interest rate that you WILL be charged. If you cannot afford this interest or the idea of being hit with said interest leaves a sour taste in your mouth you still have options. You can always apply for a credit card with more reasonable interest rates and bypass these promotional offers all together.

These promotional offers however can be useful. They can allow you interest free financing of a large purchase. The key to making it work is to use your budget and figure out a monthly payment that works for both you and your budget. If you can figure out a repayment plan that will have your debt paid off by or before the promotional period ends, then you know that this type of promotional offer will work for you.

If you cannot repay the debt before the promotional period ends, this is where the real problems begin. For one you get hit with a huge lump sum interest payment. This interest will in turn accrue more interest if not quickly paid off. If you had trouble paying it off during the promotional period, it stands to reason that the now even bigger debt will take even more time to pay off, resulting in more interest. If you do happen to find yourself in this trap you could try for a credit card balance transfer to a credit card that offers a promotional zero percent interest on credit card balance transfers. Yet this is only a temporary respite from your current problems, you will now be back where you started from as these offers to have a time limit on repaying the debt or you again get hit with more interest at the end of this new promotional period.