September 17  Category: Playbook

In the sports world, an ace in the hole is a hidden advantage or resource kept in reserve until needed. In our world at Credit Coach, we refer to balance transfer checks as one of our aces in the hole.

You can save money by taking advantage of balance transfer credit card offers. With balance transfers, you are looking to transfer a high interest rate credit card balance to another credit card that offers a juicy low interest rate. In many cases, the annual percentage rate is 0% during a certain time frame. Before the promotional rate ends, you would pay off the balance transfer amount and save money on the interest that would have paid on the old high interest rate card. If you can’t afford to pay that balance off during that special time period, you can request a balance transfer from another one of your credit card companies and move the balance again.

3 Rules to follow when using your Ace in the Hole:

  1. These checks can only be written out for a maximum of whatever your credit limit is on your card. It is important
  2. Make sure to read the fine print on all cards for their own stipulations and requirements. You will want to know the exact dates of the “promotional zero or low interest rate period”. You want to make sure to either pay off the balance or move the balance with another promotional offer before your special rate expires.
  3. There is often a one time fee usually that is charged when you use the check. It is customary to be charged a fee of 1 to 3% of the amount you transfer. This is a nominal fee that is inconsequential in comparison to the money you will save in interest charges.

Here are some examples of the offers credit cards will offer you:

– Low Balance Transfer APR – 4.99% Fixed APR for the life of the balance
– 0% Intro APR for 12 months on Balance Transfers
– 2.99% Fixed APR for Life on balances transferred within 3 months
– 0% APR for 15 Months on Balance Transfers, 7.99% Fixed APR thereafter

All of the above examples are a good way to save a bunch of money, or even use their money at little or no cost!

Credit Coaches Quotable: “The difference betw