Tuesday, March 20, 2007

Credit swap

Transfer those balances. I have safely transferred balances from old credit cards to new cards for 5 years now. Find a credit card that offers no balance transfer fees and no interest for a year (15 months comes around too). The key to no interest is to not use the card! Transfer the balance and put it in the drawer. I would say cut it up, but sometimes you must provide the full card number when calling customer service. Three cards that I have used successfully are:

Discover Platinum Card
12 months no interest, no balance transfer fee
$5,000 initial credit line

Bank of America
not as good, only 6 months no interest, no balance transfer fee
$5,000 initial credit line

Citibank
12 months no interest, no balance transfer fee
$2,800 initial credit line

All three of these were very easy to apply for online and had no problems getting accepted. I also have a credit score 715-760 so it makes it easier. If you have bad credit, it might be harder to get approved and transfer the balances, but it's worth a shot.

I also do not recommend having a balance over $2,000 at anytime. It is easy to keep spending when you see that you have all that credit limit left, but you need to keep your debt to credit ratio below 20%. I try to keep mine around 15% at the most.

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