Cardholders can avoid interest rates and credit card fees by transferring balances between two credit cards with different closing dates.
It's common knowledge that credit card companies make money by charging cardholders interest rates and other fees. If people didn't have to pay these fees, credit card companies wouldn't make as much money when people use their cards.
When you use a credit card, you have to pay different fees. Late fees, which are charged when a payment is sent more than 30 days late, and over-the-limit fees, which are charged when a cardholder spends more than their credit limit, are the most common fees that cardholders have to pay. The easiest way to avoid these fees is to pay your bills on time each month and not use more than your credit limit.
The interest rate is the fee that the credit card company charges for making it easy to keep a balance on the card after the grace period is over. Different credit cards have different grace periods, which are listed on the monthly statement. If you don't pay off your credit card balance in full by the end of the grace period, the balance will be charged interest. Visit http://www.credit-cards-with-low-apr.com to learn more about credit card rates.
Between the interest rate and the fees, people who use credit cards end up paying a lot more than the amount they bought with the card in the first place. You don't have to pay these fees if you use normal methods. Smart people who use credit cards think of ways to avoid paying fees to credit card companies that aren't obvious.
If you have two credit cards that let you move your balance between them for free, you can keep doing this without having to pay interest or late fees.
For the credit card shuffle to work, the grace periods on the two credit cards must end on different dates. If the closing dates are on the same day, you won't be able to move balances from one credit card to another without paying interest or a late fee or both. If the due dates on your credit cards are the same, you can call the credit card company and ask to change your due date. This will change the date the credit card is due to be paid off.
You must be careful when you move the balances from one credit card to the other. Let's say that Card A is due on the first of the month and Card B is due on the fifteenth. To avoid paying interest on Card A, you must move the entire balance to Card B before the first of the month. Then you must move the balance from Card B to Card A again before the 15th of the month. To avoid paying interest rates and fees, you have to be very careful about when you move money between credit cards.
