Have you got one of those special credit card advance offers in the mail? Before you toss it out, maybe just take a good look at what they are offering. You just might be able to take advantage of this advance and win!
If you are being offered an advance up to your limit, here is how you can take advantage of this offer and win. As most of us know, credit companies tend to charge notoriously high interest rates.
Ask Yourself These Questions
If you receive an offer for an advance check or cash in your account for zero percent for a year, read the fine print, and then consider your personality. Before you accept this deal, you need to ask yourself.
Are you disciplined enough to pay this back before the year is up?
Are you good with credit? Be honest here
Do you have another card you can use for day to day purchases?
If you answered yes to the above questions, then you can win at this game and use their money for free. But you will need to follow a few rules. Otherwise they will win at this game and we don't want that to happen do we?
Circle the Date
The first thing you do is find out when this special deal is over. They are not likely going to warn you, so circle the date on your calendar now. Actually circle the date about a week before so you can have enough time to get that last payment to them. Circle it in red and be ready.
Day to Day Purchases
Make sure you do not use this account for day to day purchases, as when you make your payments, they will go to the advance, and not the purchases first. That means that your purchases could be sitting on your account until the cash advance is paid off, and depending on how long that takes you, your purchases will be accumulating high interest charges (depending on what your regular interest charges are). This would then defeat the purpose of the advance at zero percent. Read the fine print, it will tell you that any payments will go to the lower interest item first, which would be the advance, and that means unless you pay that advance off instantly the other purchases will sit there being charged the higher regular interest. This is how they make their money.
So, before you take that cash advance, make sure that card is empty if it is for an existing card.
Set Aside Payments for Credit Card Advance
Take the amount you are going to get from your cash advance, and figure out how much per month you need to put away to have enough to pay it off in the amount of time they allowed you at that special rate of interest or zero interest. For example, if you are offered 5000.00 for a zero interest advance, you are going to need to set aside approximately 417.00 per month.
Take that amount and put it into a high interest savings account faithfully each month. Then when it is time to pay off that credit card advance, use this money.
Win/Win at the Credit Card Advance Game
This could be a win/win, as you get to use their money for free, and get some interest off it from the savings account. Just take the time to circle the date, put it away each month, don't use it for purchases, and you can win at the credit card advance game.!