When It Pays to Make a Balance Transfer

When It Pays to Make a Balance Transfer

In a perfect world, you’d pay your credit card bill in full each month. But, life happens — your basement floods, your daughter needs braces, your refrigerator dies — and before you know it, you’ve got a balance that you can’t pay off. Fast forward several years later, and you’re still carrying a revolving balance.

As a result, those balance transfer offers that show up in your mailbox each week sound pretty enticing. But you’re wary because you’ve always heard that they are simply a way for the card issuers to make even more money off of you. After all, many cards charge a balance transfer fee around 3 percent.  (This means that it’ll cost you $150 to transfer a balance of $5,000.)

But transferring a balance can get you out of debt. And not only can it get you out of the red quicker, but it can do so for less money, too. Here, three scenarios when it pays to make a balance transfer:

If you have good credit

When your credit is strong, card issuers are going to throw their best offers your way. So if you have a good credit score, it’s likely that you’re going to have your pick of 0% APR balance transfer offers to choose from. Transfer your balance to one of these cards and take advantage of the promo period, which typically offer 12 to 18 months to pay off your balance interest free. Remember though, the goal is to pay off the debt and save on interest while doing so,  so you’ll want to avoid charging anything on the old card after you clear the balance with a balance transfer.

If you have an extremely high interest rate

Are you paying 20 percent or more in interest on your plastic? If so, you have to ditch it ASAP. With that high of an interest rate so much of your payment is going towards interest that it can feel next to impossible to pay off your balance.  Transfer your balance to a card with a 0% APR introductory period  (or one with a low teaser rate) and work to pay off the balance within the promo period. If you can’t completely ditch your balance during that time, transferring it can still make sense — provided that the regular interest rate is lower than what you’re currently paying. To avoid any surprises,  be sure to read the fine print before you apply and make sure you know what the interest will revert to after the promotional period ends.  Remember to keep it open and use it now and then to keep the monthly reporting on your credit file to keep your "A" rating.  It is an odd fact lately, that the credit monitoring websites are stating that the number of credit and loan accounts on your credit report is graded as well. They are stating that whether open or closed, 22 accounts will get you an "A" rating with the new FICO scoring system.  Every account, good or bad, stays on your credit report for 7 years, so 22 accounts showing on your report is not impossible.

If you’re carrying a balance on several cards

It goes without saying that keeping track of the due dates of several credit cards can get confusing. And if you’re not diligent, you can easily miss one of them, leaving you on the hook for a costly late fee. Make your life easier by consolidating all of your balances on one card — with only one interest rate and due date to remember. And if you do tend to carry a balance on your cards from month-to-month, use the promotional period to focus on paying it off.

A balance transfer credit card can be a great way to pay off credit card debt and save on finance charges. The goal is to save on the interest and get out of credit card debt altogether. Once you have paid off your balances, focus on only charging what you can comfortably afford to pay off — in full — at the end of each month when your credit card bill arrives. By doing so, you’ll never have to worry about credit card debt and you’ll never pay a dime in interest.

If you're ready to obtain higher credit limit cards with balance transfer options, please visit:  www.FreeDebitCardStore.com

Build Your Credit with a Secured Credit Card

Build Your Credit with a Secured Credit Card

“The only things certain in life are death and taxes.” Well, that might have been true in Benjamin Franklin’s day, but in the 21st century, you might as well add credit cards to that list. Some places, like hotels and car rental agencies, require a credit card, even if you plan on paying cash. However, if you’re new to credit or have to rebuild your credit after a major life event, like a divorce or job loss, you may not be eligible for traditional credit cards but you may be able to acquire a

secured credit card instead.

1. What is a Secured Credit Card?

A secured credit card is similar to a debit card but instead of being tied to your checking account, it’s tied instead to a cash deposit you’ve made to “secure” the card. If you put $500 on the secured credit card, you have a $500 credit limit. So why go with a secured card? Because unlike debit cards, secured cards report to the credit bureaus, so on-time payments, extra monthly payments and good behavior will build your credit score.   After a while, if you manage your account responsibly, your credit line may increase automatically without additional deposits.  Many secured credit card issuers have been known to change the status of your credit card from secured to unsecured after a specific amount of time paying on time, keeping your balance you carry around 30% of your credit limit and never going over your credit limit.  Once they do this, they typically refund your deposit to you in the form of a check.  Make sure you always keep your address and telephone information

up-to-date.

2. Where Can I Get a Secured Credit Card?

About half of the nation’s credit unions offer secured cards, so if you’re a member of a union, that’s a good place to start. One drawback with credit unions is that many only report to one credit bureau and if you’re looking to establish or rebuild your credit, you’ll want to make sure the card is reported to all three credit bureaus. If you’re not a member or your union doesn’t offer one, check out our recommendations for secured credit cards at the bottom of this article.  .

3. How Much Will a Secured Card Cost Me?

As with any credit card it pays to read the fine print. Annual fees, application fees, and monthly charges can eat up your entire balance, so make sure you shop around to find the best deal. Also, some things, like the application fee, can often be negotiable… so, negotiate.

4. How Much is the Normal Deposit?

Secured credit cards normally require an initial deposit in the range of $200-$2,000. This will be your credit limit, and over time, you may build unsecured credit on top of that.

5. Do All Secured Cards Report to All Three Credit Card Bureaus?

Having a credit card goes far beyond being able to buy shoes online. The most important part is that you’re building credit, and this can only be done if the issuer is reporting your on-time payments and other factors to the credit reporting bureaus. Some will not report, some will only report to one, and others send your information to all three. If you start receiving mailers from other credit cards after several payments, this is an indicator that they do report; however, it’s best to read carefully through the terms and conditions – or simply ask the issuer up front –and choose a card that does report.

6. How Long Will It Take Me to Qualify for a Regular Credit Card?

If you manage your new secured credit card impeccably, the credit card issuer will want to keep you as a customer. Typically after a year of good credit card management, the issuer will automatically initiate your move to unsecured credit.  If after a year your issuer does not automatically upgrade your account to a traditional unsecured credit account, give them a call and ask them to do so.

7. What Happens to the Deposit?

Whatever money you put down as a deposit gets put into an account of your choice, usually a savings account, money market or certificate of deposit. You will earn the same amount of interest on this deposit as you would if you had put it in a normal bank account. After you close your secured credit card, the deposit will typically be held for a couple of billing cycles to cover any stray charges. Ask the issuer for exact time periods.

8. What Are the Best Ways to Use a Secured Card to Build Credit?

Just like with an unsecured credit card, you’ll want to pay on time and keep your revolving utilization – the proportion of your balance in relation to the credit limit – as low as possible. Using the card regularly and paying in full will also show that you are a good credit risk. However, advisors warn to shed your secured credit card as soon as possible for unsecured credit. Even though secured cards may seem safer and encourage savings, because of their higher annual fees and interest rates, an unsecured card will be better in the long run. So, use the secured credit card as a stepping stone to build credit and learn responsibility, then move on.  If you have your secured credit card account for two years or more and it has been changed to a unsecured credit card, do not close the account before you negotiate a lower interest rate with no annual fee to keep you as a customer.  Closing your credit card accounts that have been in good standing for two years or more will cause your credit score to drop.  Yes, you can be penalized for closing a credit card account that you have kept paid on time and under the credit limit.  As odd as it sounds, it will take you a while to build your score back up after closing an account.

Our recommendations for secured credit cards are as follows and we update the list regularly:

Open Sky by Capital Bank                              $200 - $3,000. 17.5% APR. $29 Annual Fee.

Unity Visa by OneUnited Bank                 $250 - $10,000.  17.99% APR. $39 Annual Fee.

USAA Secured Platinum Card                  $250 - $5,000.     9.90% APR.   $35 Annual Fee.

USAA Secured Platinum American Express Card  
                                                                                $250 - $5,000. 9.90% APR. $35 Annual Fee.

First Progress Platinum Prestige MasterCard  
                                                                            $300 - $2,000. 11.99% APR.    $44 Annual Fee.

primor™ Secured Visa Classic Card   $200 - $5,000.       13.99% APR.    $39 Annual Fee.

primor™ Secured Visa Gold Card        $200 - $5,000.          9.99% APR.    $49 Annual Fee.

Why Don’t My Credit Cards Ever Show a Zero Balance on My Credit Reports?

Why Don’t My Credit Cards Ever Show a Zero Balance on My Credit Reports?

You’ve done your homework and you know that paying off your credit cards in full each month is the smart move.  You’re avoiding expensive interest charges and you’re avoiding excessive credit card debt. And, you know that maintaining a low balance relative to the credit limit is a great way to earn solid credit scores.  The cherry on top is that you check your credit reports several times each year to ensure the data is accurate.

By all accounts you’re well engaged with the important facets of all things consumer credit. But, one thing has you baffled. Every time you check your credit reports the credit cards that you use always show that you have an outstanding balance. How can that be true given that you pay them off each and every month?

The answer is…

Credit card issuers update the information in your credit files only once each month. And, their update occurs soon after your statement closing date. The statement closing date is the end of you monthly billing cycle.  It’s also the same date that your balance due is determined, which is what’s included in your billing statement.

You’ll notice that the balance on your credit report is the same balance as was on your prior month’s billing statement. So, if your balance due in September was $1,000 then the balance reported to the credit bureaus as of September will also be $1,000. That’s not a coincidence. As long as you get a statement will a balance greater than zero, your credit reports will always show that there’s a balance due on your credit card accounts.

Here’s how to beat the system

It’s true that if you continue to simply pay your bill in full by the due date you’ll never have a zero balance on your credit reports. However, there are a few legitimate ways to beat the system but they’re going to require some strategy on your part.  Here are the two ways to ensure a zero balance shows up on your credit reports.

1.  Stop using the card for one full billing cycle.

If you pay your balance in full each month BUT then use the card again you’re always going to have a balance the following month and, therefore, will always have a balance on your credit reports. But, if you’ll pay your bill in full and also stop using the card your next statement will have a zero balance due.

This isn’t an optimal strategy because those of us who use credit cards responsibly recognize that they make our lives much more efficient and not using it just to force a zero balance on our credit reports isn’t a viable long term strategy.

2.  Pay the balance in full by the statement closing date.

Your statement balance is a product of any unpaid balance carried over from the prior month + interest + fees – payments – credits.  If you can get that math to equal $0 then your statement will also have a $0 balance due.

This isn’t very hard to accomplish because all you have to do is pay off your existing balance online a few days before the statement closing date. That will result in your balance being zero on your statement. And, it will also result in a zero balance on the account as reported to the credit reporting agencies. This strategy is much more attractive because you can still use your credit card. But, you will forgo the grace period because you’re paying off the balance even before the billing statement has been generated.

Sign up for a secured card to help rebuild your credit by clicking on one of our links on the right. 

Email us at: info@CherokeeFinancialinc.com for the opportunity to make money from your excellent credit on any of your high limit credit cards that have at least 2 years payment history.  You'll be surprised to find that doing something simple will put money in your pocket to pay down your

debt or use however you want.

Why There's No Such Thing As Too Many Credit Cards

Why There’s No Such Thing As

Too Many Credit Cards

John Ulzheimer has 13 credit cards, but he’s never paid a cent in interest, his credit score stays above 800, and he’s never dug his way out of consumer debt.

That’s because he knows exactly what he’s doing.

Ulzheimer, credit expert at CreditSesame.com, has over 23 years of experience in the consumer credit industry and has even worked for credit bureau Equifax and for FICO, the creators of the most widely used credit score in the country.

“The initial strategy wasn’t to just open a bunch of cards,” he remembers, “but when I went to work for FICO, I realized that if you have a lot of cards, pay them all on time, and keep your balances low, you’re actually benefiting from that.”

“A lot of people are critical of my example,” he acknowledges. “But having a lot of cards is only a problem if you aren’t responsible with them — if you let the cards control you.”

Here, we’ve highlighted nine of the credit lessons to learn from Ulzheimer’s experience. Even if you plan to stick with the three or four held by the average American consumer, see what you can glean:

1. Have a reason for opening each card.

You should have a use in mind for every card before you apply. Ulzheimer only opens cards that have a purpose, like his Delta Reserve card. “I live in Atlanta and fly Delta all the time,” he explains, “and the card earns Medallion miles, which allow me to do things like upgrade to first class and check bags for free. It makes my travel much more convenient and enjoyable.”

2. Keep your cards open.

Unless you’re paying exorbitant fees, or find that you can’t control yourself with too much credit, there’s no reason to close your cards. While closing a card won’t shorten your account history, it will decrease your total amount of credit available and therefore increase your credit utilization rate, which could have an adverse effect on your credit score. Ulzheimer’s oldest card is from 1999.

3. Keep your cards active.

“I don’t use all 13 cards at the same time,” explains Ulzheimer. “I rotate one or two into regular use to make sure they all get some activity, so the issuer doesn’t proactively close them.” Credit card companies want you to use their cards, so if you haven’t touched yours in awhile, they can take it upon themselves to lower your balance or close the card altogether. They must notify you if they do, but why would you want to take that chance?

4. Be deliberate about which card you choose to use.

On the recommendation of his accountant, Ulzheimer uses a business credit card for his professional expenses, a credit union card for small, everyday purchases like gas or dry cleaning, and his favorite rewards card — the Delta Reserve — for bigger purchases, like furniture or auto work. When he signed his son up for a summer of camps, he used three of the cards that have lain dormant for a few months.

5. Never spend money just to get rewards.

“I call this chasing rewards, where you buy things or open cards you wouldn’t normally to get the points,” Ulzheimer says, noting that he uses his cards only to spend money he would anyway. “It’s incredibly dangerous. Most people who find themselves in terrible credit card debt attribute it to using cards this way.”

6. Get close with your account statements.

Ulzheimer logs into his accounts every day — sometimes more than once. He doesn’t find it difficult to keep track of them because he’s familiar with exactly which cards he’s using and how much he’s spending. “I’m very engaged with my bank accounts,” he says.

7. Be on top of your payments.

Ulzheimer pays all of his credit card bills manually — no auto-pay for him — and makes a point of logging into his account and paying the balance even before the statement period closes and a bill is sent to him. “That way, I never carry a balance, and it doesn’t show up on my credit report,” he explains.

8. Space out your new accounts.

There’s no need to go out and get a dozen credit cards today. In fact, Ulzheimer advises against it. “Don’t acquire a bunch of cards all at one time because the hard inquiries will destroy your credit score, and you probably won’t be approved for all of them,” he says. “This is a long-term strategy.”

9. Use credit cards as they were intended.

Credit cards aren’t meant to let you spend money you don’t have, and treating them that way is what gets too many of us in trouble. “You have to use credit cards for what they were designed for: convenient shopping,” cautions Ulzheimer.

Sign up for a secured card to help rebuild your credit by clicking on one of our links on the right.  

How To Disable RFID Chips

RFID tags contain a tiny microchip that is attached to an antenna. RFID stands for Radio Frequency IDentification, and can be used to remotely identify and track the item containing the RFID chip using radio waves. RFID chips are used in everyday life in things such as credit cards, toll road payment cards, passports and money. RFID chips are even implanted into pets and humans for tracking purposes.










Instructions:
       
1. Determine the location of the RFID chip. Check for a shortened signature box on the backside of a credit card if the RFID chip is difficult to locate. The RFID chip should be to the right of the shortened signature box.
       
2. Position a screw driver or other similarly-shaped metal object over the RFID chip.
       
3. Strike the screw driver with a hammer, driving the screw driver's metal edge into the RFID chip. Repeat until the RFID chip has been completely smashed.
       
4. Place the RFID chip inside of a microwave oven and turn on the power. The RFID chip will be rendered useless after being exposed to the microwave for only a second or two.

To remove the RFID chip from a plastic credit card without destroying it completely, soak the card in paint thinner or nail polish remover for a few hours and then peel back the plastic to remove the chip.

Balance Transfer Credit Cards with Low Interest Offers at: www.CherokeeFinancialInc.com

How To Keep RFID Cards Safe

RFID credit cards use a radio frequency to transmit personal financial data. They are not swiped through a scanning machine like a traditional credit card. Unfortunately, RFID credit cards can be skimmed when an unauthorized user grabs the unencrypted data from your card using an RFID reader. The technology Website EnGadget found that data from RFID credit cards is easily skimmed using an $8 reader purchased on eBay. Credit card companies are aware of the problem and are creating security fixes, but there are a number of steps you can take to protect your financial information.






Instructions:
       
1. Leave your RFID credit cards at home. If you are concerned about the safety of your information on your card, use it only at home for online purchases. Pay for purchases outside your home with cash or regular credit cards.
       
2. Stack your RFID credit cards together in your wallet. Putting your cards next to one another will make it harder for a scanner to read the data on a particular RFID card. However, this only offers a small amount of protection.
       
3. Wrap your RFID credit cards in aluminum foil before putting them in your wallet. Some users have reported that this simple, homemade technique helps block RFID scanners from reading the card.
       
4. Consider a credit card shield for more advanced protection. There are a number of companies that manufacture shields that hold your credit card when it is not in use. Most companies use aluminum material to prevent RFID scanners from reading the data on your card, and they usually cost less than $10.
     
5. Consider a special wallet, such as a DataSafe wallet, if you would prefer not to have a separate shield for each individual credit card. These wallets look completely normal, but they are manufactured with materials that have been approved by the Government Services Administration to
block RFID transmissions.  The most inexpensive aluminum wallets can be purchased at Family Dollar for around $10.
       
6. Monitor your credit card statements regularly for errors or odd charges. Credit card theft and fraud can occur even after taking the best precautions, but regularly monitoring your bank statements can alert you to any suspicious activity.

In addition to keeping a close eye on your credit card statements, it is always a good idea to monitor your credit report. This can alert you to any unauthorized accounts that have been opened in your name. It can help you protect your credit.

For All Of Your Credit Card, Prepaid Debit Card, Checking & Savings Accounts, Loans & Credit Monitoring Needs, Visit: www.CherokeeFinancialInc.com

How Long Does it Take an Average Person to Pay Off Their Credit Card Debt?

Unfortunately, paying off credit card debt is not always a simple and straightforward process -- especially when all you can make is the minimum payment each month. Continuous use of the card while trying to pay it off further complicates the matter. Examine how long it can take the average person to pay off credit card debt to understand the importance of a debt payoff strategy.

The average American carries about $4,200 in credit card debt. Consumers use credit card funds for everything from emergencies to buying gas and food. The best practice to avoid piling up credit card debt is to pay off the balance in full each month. Otherwise you must meet the minimum payment requirements of the creditor, which starts at about 2 percent of the balance.


   
Downsides of Credit Card Debt

Choosing to carry a credit card debt balance for a long term could negatively affect your ability to get other forms of credit. For example, mortgage lenders look at your debt-to-income ratio when evaluating you for a mortgage loan. The more credit card debt you have, the higher that ratio, which lowers your chance of approval. Credit card debt is also very costly in terms of the average rates and fees. Some creditors charge as much as 79.9 percent annually.
   
Average Time to Payoff

The average amount of time it takes to pay off debt varies according to the account holder's rate, balance and spending habits. The average credit card rate is about 14.72 percent (estimate as of 2011) and as discussed, the average person has about $4,200 of credit card debt (estimate as of 2011). Based on those figures (and assuming a minimum payment of 2 percent of the balance) making the minimum payment each month would take more than 24 years to pay off. Technically the debt can persist forever if the account holder continues to use the card.
   
Suggestions

 Determine how long it will take for you to pay off your own credit card debt using the Bankrate minimum payment calculator. Then take every step possible to reduce the amount of time it will take you to pay off your credit card debt. One way is to enact a debt payoff strategy that requires you to pay more than your required payment each month. The more extra principal you pay each month over the minimum, the less time it will take to achieve a zero balance. Another strategy to pay off the credit card early is to consolidate the debt into a lower interest account, such as a refinanced mortgage loan. Consult a financial counselor for advice before taking that step.

To Apply for Lower Interest Credit Cards with Balance Transfer Offers, Visit:  www.CherokeeFinancialInc.com

How to Pay Off Credit Card Debt with Micropayments

Making micropayments enables you to more quickly erase your credit card debt.  A micropayment system can help you pay down your credit card debt faster. Most people pay their bill monthly, which allows more interest to accrue because companies compute that on an average daily balance. However, making several payments each month as money becomes available enables you to lower your average daily balance, thereby lowering interest. As you pay off accounts through this micropayment system, more money becomes available to accelerate your payoff plan.


Instructions:    

1.  Create a budget, allocating the minimum payment due on each of your accounts. Be sure that you hold back money for paying regular bills as they come due. If you are depositing money into a savings account, be sure to include that in your budget. Even if you are in debt, it is wise to save money each month in an emergency fund.

2. Set up online bill pay for all your credit cards. This will save you money on postage and check printing, thereby providing more you can allocate to micropayments.
     
3. Pay your bills on time and as soon as possible, instead of piling up a stack of bills for your monthly or biweekly bill paying session.  If you have extra money at this point, add it to one of your credit card payments.

4. Make a goal to save or earn a specific amount of extra money for weekly micropayments. Most people should be able to come up with at least $15 to $25 weekly in savings and/or extra income.
     
5. Focus on paying off one account at a time with weekly micropayments in addition to your minimum monthly balance due. If your goal is to pay off the card at the highest rate first, then that is where you will apply those payments.

6. Continue paying the initial minimum payment on this card until it is paid off, regardless of how much your minimum payment is reduced.

When that account is paid in full, transfer the minimum payment you were making to the next credit card on your payoff plan and repeat the process.

 Reducing Credit Card Debt is Easier Than You Think.  You can combine the micropayment system with other payoff plans. If you are paying extra monthly to pay down your highest interest rate card
first, spreading out that extra money could actually reduce the total amount of interest you will pay.

For Credit Cards with Lower Rates with Balance Transfer Option, Visit: www.CherokeeFinancialInc.com

Should I Pay Off My Second Mortgage Or My Credit Cards First?

When choosing between bad options, choose the one that harms you least. 

 You could lose your home
   
Your second mortgage, if you get into financial trouble, could cost you your house. Your credit cards, no matter how bad your finances get, can't put you out on the street, though they can wreck your credit rating if you go too long without paying them.

When Your Credit Card Bills Are Higher Than Your Mortgage

If you're paying more on credit cards than you are on the second mortgage each month, it's worth it to trim the fat off of your expenses and run that credit card bill down to nothing--then retire the card. Debt consolidations may be worth exploring in this instance.
   
Bottom Line

Unless your mortgage is "upside down," where the total debt owed exceeds the value of your home, you are almost always better off paying off the second mortgage ahead of paying off the credit cards if you have to make a choice between the two. If you are capable of paying both debts off, put extra money toward paying off the one with the highest interest rate.



For all Your Financial Needs, Visit:  www.CherokeeFinancialInc.com

Consumer Debt Relief Tips

Relieving yourself from consumer debt will allow your money to grow.

It doesn't take long to get into debt, but trying to pay off consumer debt can be overwhelming. Being in debt creates stress and frustration and prevents the consumer from living life to the fullest. There are strategies to help those in debt begin to pay off credit card balances and to avoid consumer debt in the long run.

Pay Down Debt

It is important to stop using credit cards when you are trying to decrease your debt. Pay as much as you can on the card that holds the highest interest rate and pay the minimum balance on all other cards. When that card is paid off, use the same method on the card holding the next highest interest rate. This strategy protects your credit score and allows you to feel success as each card is paid off. If you do not have extra funds to begin paying down your debt, consider taking a part-time job and use your paychecks exclusively for paying off debt.
   
Debt Negotiation

Another strategy is debt negotiation. Contact creditors in person or by phone to try to get interest rates lowered on the high-interest balances.  You may qualify for this if you can prove you are currently facing a financial hardship. Creditors do not have to lower their rates, but it may be in their best interests if it allows the consumer to pay off the balance.
   
Debt Consolidation

Consolidation combines smaller debts into one larger loan with only one payment per month. Debt consolidation turns unsecured debt into secured debt. The debt becomes secured by the consumer's property, which may be seized if the consumer fails to pay.
   
Credit Counseling

Credit counselors assist those in debt to develop budgets. They advise on managing money and may provide follow-up workshops or other sessions.  It is important to research credit counselors carefully and not to do business with anyone who charges high fees. You do not want to get further into debt.
   
Adjust Attitude Toward Spending

Think about the underlying causes of getting into debt. Are you spending as a form of recreation or to make yourself feel better? Once your debt is paid off, you do not want to adopt the same spending pattern as before. Living within your means is healthful for your bank account and for your emotions.

For Lower Interest Credit Cards & Balance Transfer Credit Cards, 
Visit: www.CherokeeFinancialInc.com

How to Transfer Credit Card Debt to Avoid Interest

Credit cards are an ever-increasing part of our capitalistic culture and the credit card companies know this. They are raising interest rates and penalty fees, making it very easy for the average person to become consumed by their debt even more quickly than before. However, by making smart balance transfers, you can pay off your credit card debt and avoid paying those astronomical interest fees. It just takes a little discipline and organization.

Things You'll Need: Credit card offers






Instructions:
       
1. Make a list of your credit card balances. Organize this list by highest interest rate to lowest interest rate.
       
2. Search for a balance transfer offer with an introductory interest rate offer of zero percent.
       
3. Transfer as much of your debt as you can to this card, starting with the balance on your highest interest rate card.
       
4. Find as many zero percent interest rate offers as you can qualify for, and continue to transfer your debt with the highest interest rates.
       
5. Create a spreadsheet to keep track of when your introductory offers will end.
       
6. Repeat steps 2 through 6 one month before the end of each of your introductory periods.

If you can make more than the minimum payment every month, do it. This will help you pay down your debt even faster.

Balance transfers can take a few weeks to be finalized, so if your due date is coming up, check with your credit card company to see if you need to make a payment. You don't want to end up with a late fee after you've done all this work!

Read the fine print with every offer!

NOTE: You must transfer your balances again to another zero percent interest offer before your existing introductory offer is over. Otherwise, you will get slammed with their interest rates while you are looking for another offer.

For Some Of The Best Offers for Lower Interest Credit Cards and Balance Transfer Credit Cards, Visit: www.CherokeeFinancialInc.com

When You Pay Off A Credit Card, How Long Does It Take To Show On Your Credit Report?

Paying off credit card debt is a major stress reliever and a financial achievement for anyone who has previously struggled with debt and credit score problems. It often takes years or even decades to get out of debt. Significant credit card debt can negatively affect your credit for a long time, denying you the ability to buy a house or car or secure another type of loan. Thankfully, credit card debt and its effect on credit scores are temporary. Your credit score improves once the debt is paid, though the amount of time it takes to improve varies by situation.







Billing Cycles

A paid-off balance usually will show up on your credit report within one to two billing cycles, or 30 to 60 days. Sometimes it shows up faster; it depends on when the credit card company reports the payment to the credit bureaus. Check your credit report a month after paying off your credit card. If you do not see the payment reflected on your credit report, call the credit card company to find out when they will be reporting the payment. Request that they report it as soon as possible.
   
Negative Records

If your credit card was seriously delinquent, it might take more time for the delinquency to disappear from your credit report. Credit card accounts that are charged off or sent to collections are reported to the credit bureaus. Those charges stay on your credit report for seven years. Bankruptcies stay on your report for 10 years. If you pay the card off, it will be marked as "paid" on your credit report, but the
charge-off or collection status remains for seven years.
   
Errors

If you paid off a credit card but the payment has not shown up on the credit report for several months, it might be due to an error on your credit report. Call the credit card company to make sure they reported the payment to the credit bureaus. If that does not resolve the issue, send a letter to the credit card company requesting that they review the situation and include all supporting documents, such as bank statements that verify the payment amount and date. The credit card company is legally required to investigate and report back to you within 30 days. If an error is determined, the credit card company will contact the credit bureaus to update your credit report.
   
Effects of Paying Debt

In almost all cases, paying off your credit card will improve your credit score. It might improve it slightly, or it might improve the score significantly. Several variables affect how much your score will change, including the limit on the credit card and your overall debt and financial history. It might be more beneficial for you to pay off the card but keep the account open rather than close it completely. Use the card to make purchases, then pay off the debt immediately each month. This will demonstrate responsible use of the card, which will help your credit report and credit score.

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