Michigan Credit Card : Do’s and Don’ts

By: EconomyWatch Content Team   Date: 26 January 2010

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If you have a credit card that charges you a high rate of interest then you might want to think about switching to a Michigan credit card that offers a balance transfer deal (or more to the point, a zero percent balance transfer). A balance transfer credit card sounds exactly as it is. You are transferring a balance from one credit card to another in order to get a lower introductory interest rate.

This is a good thing moneywise because it means that you will pay no interest for a fixed span of time. In most instances it is anywhere from three to six months. However there are some offers that are good for a period of 12 months.

There are some important do’s and don’t to bear in mind when looking for a Michigan credit card to do a balance transfer. We look at those below.

Do compare and contrast a variety of offers. To find an offer that is appropriate for you, it is imperative that you shop around. Look for a card that offers a long interest free repayment period. Look for one that offers you a lower interest rate once the zero percent APR deal has come to an end.  It also cannot hurt to look for an offer with a lower transfer fee.

Don’t ignore the transfer fees you could be charged. This is yet another reason why it is so important to shop around. Transfer fees are pretty much a standard feature on most zero percent balance credit cards. That is because credit card companies do not want their customers to take them up on the interest free deal and then ditch them once it comes to an end. The fees vary considerably from company to company with the average being around 2.5 to 3 percent of the balance that is owing. The lower a balance transfer fee you can find the better.

Do be honest with yourself. If you know for sure that you will be able to pay off your balance during the interest free period then a Michigan credit card that offers a zero percent balance transfer is a smart idea for you. However if you will be carrying a balance forward for many months then the repayments could come with a high interest price tag.

Don’t make hefty purchases on the credit card. Some balance transfer cards charge no interest on purchases but many charge interest. If you buy a large ticket item such as a refrigerator or a big screen television then you will pay more in interest than you bargained for. Use your card for reasonably priced items that you know you can pay off as soon as possible.   
 


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