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19 September 2021
12:21 hour

Credit Cards – How They Work

Wallstreet Survivor

01/09/2021 - 16:40

Credit Cards Credit cards are a great tool for making purchases and building your credit, but they can also get you into trouble if you aren’t careful. Here are some credit card facts as well as advice on how to use your card properly. What Is a Credit Card? A credit card is a physical ... Read more The post Credit Cards – How They Work appeared first on Wall Street Survivor.


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  1. Smart ways to make your credit cards work for you (19/02/2021 - Financial Express)
    Many Indians are not aware if used correctly what an important financial tool credit card can be. Usually, a lot of people use credit cards irresponsibly and end up in debt.
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  2. We will be back issuing cards by mid-September, huge potential to tap: Shalini Warrier, executive director, Federal Bank (11/08/2021 - Financial Express)
    According to research, customers reach out to credit cards when the ticket size is large. Youngsters use debit cards when the ticket size is small. That is a reason why we went for credit cards. This is true for even e-commerce platforms. Credit cards are here to stay.
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  3. Your Money: Credit cards, BNPL or EMI cards — What’s best for you? (20/07/2021 - Financial Express)
    Credit cards offer up to 50 days of interest-free periods, EMI options on eligible spends, joining gifts, promotional offers, cashback, reward points, etc.
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  4. NerdWallet: A new breed of credit cards is easier to get, even in hard times (22/04/2021 - Market Watch)
    Some fintech startups picked up the slack when the major credit card issuers slashed credit limits during the pandemic. Here's how some of them work.
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  5. Tips to make the best use of credit cards (17/06/2021 - Financial Express)
    Financial discipline while using credit cards helps build credit history and good credit score that hold in good stead when you apply for bigger loans
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  6. Credit cards: Know the finer details of your credit card (03/06/2021 - Financial Express)
    Many credit cards also come with the facility of converting eligible expenses post-purchase into EMIs to make them more affordable
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  7. 5 ways credit cards can improve your financial health (11/04/2021 - Financial Express)
    When used in a disciplined manner, credit cards can be an excellent tool for managing finances, saving money and building a strong credit score.
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  8. 5 financial benefits of availing credit cards (03/03/2021 - Financial Express)
    For those who can exercise financial discipline and follow good credit habits, credit cards can be an excellent tool for saving money and managing their finances.
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  9. NerdWallet: What are crypto credit cards and should you get one? (01/06/2021 - Market Watch)
    Credit cards offering rewards in digital currencies such as bitcoin are hot right now, but you could get burned. Here's what to know about credit card rewards and cryptocurrency.
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  10. NerdWallet: Are eco-friendly credit cards really good for the environment? (03/06/2021 - Market Watch)
    Many major banks that issue them invest in fossil fuels, so do these credit cards make a difference? Here's the lowdown, and a few things you can do instead.
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  11. Lifting of ban on new credit cards partial relief for HDFC Bank (19/08/2021 - Financial Express)
    In his letter to his colleagues, Jagdishan said in the coming months, HDFC Bank will aggressively go to the market with not just its existing suite of credit cards but also new offerings in the form of co-brands and partnerships.
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  12. NerdWallet: A simple, flat-rate cash-back credit card is a good way to get established and learn whether credit cards are right for you (09/08/2021 - Market Watch)
    If you’re new to credit cards, you might be both intrigued and wary. A no-fee, flat-rate cash-back card could be the answer to your concerns.
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  13. : Banks are offering credit cards to people without credit scores — should you get one? (18/05/2021 - Market Watch)
    ‘Most credit card issuers are still considerably more cautious now than they were pre-COVID.’
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  14. : Banks are offering credit cards to people without credit scores — should you get one? (18/05/2021 - Market Watch)
    ‘Most credit card issuers are still considerably more cautious now than they were pre-COVID.’
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  15. AFRM (22/02/2021 - Reddit Stock Market)
    I’ve posted an image highlighting my thoughts on Affirm. It was a company suggested to me in another post. Upon seeing the name, I did not immediately recognize it. However I realized a few minutes into my searches that I have seen the option to check out with Affirm all over the internet. I really do believe in this business model. Credit cards are a joke. The interest they charge is complete bulls*it. Not to mention some charge annual fees. I’ve heard some cards charge inactivity fees… it’s all sounding like a model of the past. Enter companies like Affirm, Klarna, and Afterpay. This is the way of the future. It’s an option available to many who aren’t even eligible for credit cards -whether for lack of credit, or because of bad credit. Whatever the case, it provides people with a simple, transparent way to finance larger (or smaller purchases). Take a look. Let me know what you think. https://preview.redd.it/3mruixdmj3j61.jpg?width=1745&format=pjpg&auto=webp&s=3f6e39fc89aa76144cd6658d7ec5828af7af0d9a   submitted by   /u/scatterbraimedddd [link]   [comments]
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  16. Credit card issuances decline in Feb; ICICI Bank leads new issuances (21/04/2021 - Financial Express)
    Interestingly, ICICI Bank held a 70% share in new credit cards issued in December 2020 — the same month when the RBI barred market leader HDFC Bank from issuing fresh cards as penalty for repeated digital outages.
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  17. : Synchrony is planning to get cardholders to use their cards more (08/07/2021 - Market Watch)
    The retail loyalty landscape is shifting, but a top manager of store credit cards sees an opportunity, not a threat, in the new ways that merchants are trying to build relationships with customers.
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  18. RBL Bank enters into agreement with Visa Worldwide to issue credit cards (15/07/2021 - Money Works 4 Me)
    The bank currently issues cards only on the Mastercard network
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  19. Want to get instant cashback on online transactions? Here comes a new-age credit card (18/06/2021 - Financial Express)
    The recent country-wide lockdown and increasing work from home trend have led to a rise in online shopping with cards emerging as a preferred mode of payment.
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  20. Credit Line vs Credit Card vs Short-Term Loans: Why credit line scores over other options (10/05/2021 - Financial Express)
    While people are aware of credit cards and term loans, very few people know that credit line or line of credit may be availed by individuals also.
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  21. RBL Bank starts issuing credit cards to new customers on Visa’s payment network (15/09/2021 - Money Works 4 Me)
    These cards are designed to offer smart, convenient and secure transactions, along with attractive reward propositions to customers
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  22. NerdWallet: How to find the best credit card for international travel (10/05/2021 - Market Watch)
    Many of the perks provided by credit cards are good only in the U.S. — here are some tips and tricks for a smart credit card strategy if you often travel abroad.
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  23. Important things to keep in mind while using a credit card (10/06/2021 - Financial Express)
    Credit cards usually offer an interest-free period of up to 51 days. However, this facility is not applicable on ATM cash withdrawals using a credit card. You will be charged interest from the day you make the withdrawal.
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  24. ICICI Bank's customers can now pay any banks credit cards dues instantly (08/09/2021 - Money Works 4 Me)
    The new feature also eliminates the hassle of visiting numerous websites by customers to manage or pay dues of multiple cards
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  25. Breaking Master/Visa credit card oligopoly, UPI-based mobile card finds takers in India [Features Inside] (24/03/2021 - Financial Express)
    vCard is a digital credit card incorporating multiple tech innovations. It is fundamentally different from the plastic credit cards being offered by banks
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  26. 5 warning signs of incorrect credit card usage (04/09/2021 - Financial Express)
    If handled carelessly, credit cards can adversely impact your financial health for a long time to time. These five common signs indicate you are using your credit card the wrong way.
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  27. HDFC Bank looking to regain lost market share in 1 year after RBI lifts credit card ban (23/08/2021 - Money Works 4 Me)
    The largest private sector lender by assets was allowed to issue new credit cards by the RBI last week
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  28. Shopping credit cards in high demand, lower discretionary spends hit lifestyle cards: Report (27/05/2021 - Financial Express)
    The report indicates that people have been doing a balancing act – keeping their discretionary spends low while trying to balance safety and security.
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  29. 5 tips for maximising cashback on your credit card (21/06/2021 - The Motley Fool UK)
    Cashback credit cards give you money back with every purchase, but not everyone uses them to their full potential. Here are a few surprising but simple tips for maximising cashback on your credit card. How do cashback credit cards work? Cashback is a method of earning money when you make purchases. When you buy something using a credit card that offers cashback, a percentage of the cost is refunded to you. For example, if your card offers 1% cashback and you spend £100 in a shop, you will receive £1 back. Cashback can be given on specific items, at specific shops, or on everything you buy. Usually, cashback is paid annually, though there are some cards that will pay cashback monthly. What are some ways of maximising cashback on my credit card? 1. Review the terms and conditions Credit cards come with different terms and conditions. Make sure you read these terms and conditions before you take one out. Some cards may only offer cashback if you shop at specific participating stores. If you do not shop at these locations, the card will be of little use to you. In addition, some cards may only give you cashback once you reach a minimum monthly spending limit. 2. Find a card that offers cashback on your biggest spending Begin by going over your budget or spending patterns and establishing the categories that you spend the most money in. This could be groceries, outdoor dining, fuel or something else. To maximise your cashback, look for a credit card that offers the highest cashback or a cashback bonus on these major spending categories. 3. Use multiple cards While juggling more than one credit card could complicate your personal financial planning, it could make maximising cashback easier. For example, you could get one card that gives you bonus cashback on everyday groceries and another that gives you bonus cashback on fuel. By examining your budget and goals, you can figure out the card combination that will work best for you. If managing multiple credit cards at the same time appears to be too much for you, consider getting one that offers bonuses or higher cashback in two or more categories where you spend a lot of money. 4. Shop smartly If you choose a card that gives you a high amount of cashback on fuel or on bills, try to use your card every time for this particular expense instead of using cash or your debit card. If you go for a card that offers higher cashback when you shop online, try to make the majority of your purchases online rather than in store to maximise the amount of cashback you can get from the credit card. 5. Sign up for extra earning opportunities Some credit cards have limited-time offers to earn bonus cashback. Do your homework and try to find a card with a good sign-up bonus to maximise your cashback. That being said, there may be a minimum spending requirement, so before you take out the card, make sure that this minimum spending requirement is one you can meet. Final word Cashback is a simple and easy way to put some of the money you spend on your credit card back into your pocket. If you are in the market for a cashback credit card, take a look at our comparison of the top-rated cashback credit cards in the UK. Finally, remember the golden rule of cashback credit cards: always pay off your balance in full each month. Otherwise, the money you earn in cashback will be eroded by interest charges. Try to avoid going above and beyond in your spending just to get more cashback. You may then find it difficult to pay off your balances. The post 5 tips for maximising cashback on your credit card appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Will the BP share price continue to climb? Here’s why these UK share prices are shaking wildly today! Cristiano Ronaldo vs the Coca-Cola share price: here’s my view Is the Greatland Gold (GGP) share price set to explode? Why is the Argo Blockchain (ARB) share price crashing in 2021?
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  30. NerdWallet: 8 tips for maximizing your credit card rewards (01/04/2021 - Market Watch)
    Want to make your credit cards more rewarding this year? The key is to make sure they still align with your spending habits and goals.
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  31. Personal Finance Daily: Wealthy people changed the way they gave to charity during the pandemic and banks are offering credit cards to people without credit scores — should you get one? (18/05/2021 - Market Watch)

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  32. The Wall Street Journal: Major U.S. banks will issue credit cards to people with no credit scores as early as this year (13/05/2021 - Market Watch)
    Some of the largest U.S. banks plan to start sharing data on customers’ deposit accounts as part of a government-backed initiative to extend credit to people who have traditionally lacked opportunities to borrow.
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  33. NerdWallet: See how this 24-year-old paid off $20k in credit card debt in less than a year (17/06/2021 - Market Watch)
    Along with student loans, she had racked up four credit cards by charging food, textbooks, school supplies and other expenses.
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  34. NerdWallet: See how this 24-year-old paid off $20k in credit card debt in less than a year (17/06/2021 - Market Watch)
    Along with student loans, she had racked up four credit cards by charging food, textbooks, school supplies and other expenses.
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  35. Economic Report: Consumer credit rises at fastest rate in 10 years as Americans give their credit cards a workout (06/08/2021 - Market Watch)
    Americans increased their use of credit in June at the fastest rate in 10 years in a show of confidence for the U.S. economy before the delta strain of the coronavirus emerged.
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  36. FREO Neobank for Millennials: Digital savings account, uber-flexible credit line, Credit and EMI Cards, BNPL – all in one place (09/06/2021 - Financial Express)
    The neobanking company claims to provide value to customers as a single point of access to a variety of financial products throughout their lives. With this neo banking platform FREO, one can easily build their financial health, get credit, save, and spend in smarter ways.
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  37. Common reasons why we fall into a credit card debt trap & how to get out of it (08/08/2021 - Financial Express)
    In order to make the most of our credit cards, we should to be able to identify signs which show that we are falling into a debt trap.
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  38. YOUR MONEY: Know tax implications of credit card transactions (15/06/2021 - Financial Express)
    Attractions such as discounts, cash backs, travel miles, sign up bonuses and reward points offered by merchant dealers or banks, make credit cards a lucrative medium for making digital payments.
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  39. Economic Report: Consumer credit soars 10% in biggest gain since 2016 (08/07/2021 - Market Watch)
    Americans whipped out their credit cards in May and borrowed the most amount of money in five years, reflecting growing optimism about the economic recovery and a greater willingness of consumers to spend.
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  40. What is a store credit card? (01/04/2021 - The Motley Fool UK)
    Who doesn’t love getting a little bit extra for their shopping? Store credit cards can offer discounts or money off vouchers. But they can also tie you into shopping with one retailer. We take a look at what they are and what you need to consider before getting one. What is a store card? A store card is a credit card issued by a retailer. Typically, it can only be used with that specific store, although that is not always the case these days. Retailers like to offer store credit cards in order to guarantee customer loyalty. So you will most likely be offered discounts off your shopping or receive invitations to exclusive shopping events if you are a cardholder. A store card operates in the same way as a credit card. So you buy things using your card, and then you are required to pay off the balance at the end of the month. And just like a credit card, if you fail to pay off the balance in full you will be charged interest. [top_pitch] What is the difference between a store card and a credit card? A store card is essentially a credit card, but it is designed for use at a particular retail chain. It is important to not confuse a store card with a credit card linked to a store. John Lewis Partnership, Marks & Spencer, Tesco, Sainsbury’s and Asda all offer a store-branded credit card. But the key difference is that these cards can be used anywhere. They are not tied to being used only in the named chain. The traditional store credit card is different in that it is restricted for use at the specified retail chain. This is obviously great if you shop at that retailer a lot. But it can feel restrictive and it may not be the best deal overall. [middle_pitch] What are the advantages and disadvantages? As with anything, there are good and bad aspects to these types of cards. Let’s take a look. Advantages Discounts: A big perk of having a store credit card is that you will often receive discounts or other special offers. These will either come in the form of money off vouchers or a percentage off your bill. Other perks: You may find that as a store credit cardholder you will get exclusive access to presale events. You may also be offered other perks such as free delivery on online orders. Disadvantages Higher interest: The main thing to be aware of when it comes to a store credit card is that the interest rate tends to be higher than that of a regular credit card. In some cases, you could be looking as high as 30%. This is not a problem if you pay off your balance in full each month. However, if you leave any sort of outstanding balance, you could see your interest charges rise quite rapidly. Restrictive: By their nature, these types of cards can only be used with one retail chain. If you don’t use that particular chain that frequently, or need to use a credit card for other things, then it may not be the right kind of card for you. Impact on your credit score: Having a store credit card will affect your credit score. Lenders take into account all of your open credit accounts, so you may find that holding a card like this could impact future credit applications. Are they different to reward cards? Yes, they are different to reward credit cards. While a store credit card may offer discounts and perks, a reward credit card enables you to collect points every time you shop, no matter where you choose to use it. Reward points can typically then be used for money off your bill or you can exchange the points for vouchers. For example, credit cards that help you earn Nectar points or are part of the Tesco Clubcard scheme are a form of reward credit card. While they can be attached to a retailer, they are different from a store credit card because you can earn these reward points through other retailers too. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why I’d buy Next shares now Why the easyJet share price doesn’t tempt me What is an innovative finance ISA, or IFISA? How does the UK State Pension work for immigrants? Should I buy Royal Mail shares now that it’s paying a one-off dividend? The post What is a store credit card? appeared first on The Motley Fool UK.
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  41. Standing instructions for recurring transactions on cards to get impacted from April 1- Here is what to do (31/03/2021 - Financial Express)
    If you have given any standing instructions on your debit cards or credit cards for recurring transactions, they may get impacted from April 1.
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  42. Do you have an emergency fund? (14/06/2021 - Reddit Stocks)
    I have 25k In an HYSA getting about .40%, I have a credit cards with $0 balance with roughly 25k as a limit spread across 2 cards. I also have a brokerage account with many stocks that have reached long term capital gains status, and are up 50-100%. I am soliciting opinions on whether or not an emergency fund is a suboptimal idea with today’s interest rates and markets at ATH. Do you investors have an emergency fund? Or is it all in the market? Thanks in advance!   submitted by   /u/Pantsisacat [link]   [comments]
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  43. HDFC Bank’s credit card base shrinks by 3L during Dec-Mar (21/05/2021 - Financial Express)
    According to data released by the central bank, the number of credit cards outstanding at HDFC Bank fell by about 3.23 lakh between December 2020 and March 2021 to 1.5 crore.
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  44. ‘Neutral’ on SBI Cards and Payment Services: Motilal Oswal (02/03/2021 - Financial Express)
    SBI Cards and Payments Services (SBICARD) has strengthened its position as the second-largest card player in the country — with market share of ~19% in o/s cards and ~20% in overall spends.
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  45. Digital wallets emerge second-most popular in-store payment method (22/03/2021 - Financial Express)
    Debit cards and credit cards had a share of 20% and 12%, respectively. The report projected that digital wallets would overtake cash as the most popular in-store payment method by 2024, accounting for 33% of payments.
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  46. NerdWallet: Should you use ‘buy now, pay later’ services instead of credit cards? (01/07/2021 - Market Watch)
    Its predictability seems to resonate with a lot of consumers. Here's what to consider when deciding which one is better for you.
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  47. Wells Fargo seeks to simplify rewards in new line of Visa credit cards (08/06/2021 - Seeking Alpha)

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  48. 10 dos and don’ts of a 0% balance transfer card (17/06/2021 - The Motley Fool UK)
    If you have credit card debt, signing up for a 0% balance transfer credit card can slash the interest you pay to zero, enabling you to focus on paying off your balance rather than servicing the interest. It can also help improve your credit rating. Take a look at these ten dos and don’ts to help you work out whether a 0% balance transfer card is right for you. 1. DO choose the right 0% length for you The longest 0% cards typically charge a fee, meaning you’ll pay 1-3% of the balance you are looking to shift. If this seems hefty, or if you know you can pay off your balance earlier, it’s worth considering a no-fee balance transfer card. These generally offer shorter 0% periods than cards with a fee, but they are a better option if you don’t have the money for an upfront fee. 2. DO be aware that the 0% length on some balance transfer cards are ‘up to’ While many of the market-leading 0% cards will advertise their long 0% periods, be mindful that some of these lengths are ‘up to’. This means you could be offered a shorter 0% period depending on your credit score.  3. DO transfer your balance within the set period Most balance transfer credit cards require you to move your balance from your existing card to the new card within a set time limit. The transfer period is typically 1-3 months after you take out the card. If you don’t move your balance within this time, you won’t get the 0% period.  4. DO pay off your debt before the 0% period ends When deciding on which card to go for, ensure that you can pay off your debt within the 0% timeframe to avoid paying interest. To do this, calculate how much you can afford to pay off each month. If you can’t pay off your balance within the 0% timeframe, then you may be able to do another balance transfer in the future. 5. DO note that you can’t always transfer a balance within the same banking group Some providers won’t let you shift your balance to them if you have a credit card balance with another bank in the same banking group. For example, if you’re looking to transfer a balance from a NatWest credit card, it’s likely you won’t be able to shift it to an RBS credit card as they’re sister banks. Always read the terms and conditions before applying. 6. DON’T assume long 0% periods will continue While current 0% offerings are significant, they aren’t quite as generous as they once were. This trend may continue, meaning that balance transfer cards with lengthy 0% periods may not be as widespread in future. Don’t bank on being able to transfer your debt year after year with the same 0% periods. 7. DON’T miss a monthly payment While a 0% balance transfer credit card can mean you’ll pay no interest on your debt, it doesn’t mean you’ve nothing to pay. Always make at least the minimum monthly payment to ensure you don’t lose the 0% period.  8. DON’T assume you’ll get to shift all of your debt Credit limits vary from person to person. If you have a poor credit score, then it’s possible that even if you’re accepted for a card, you may only be able to shift part of your existing balance. If this happens, it’s worth shifting what you can to ensure you minimise the interest you pay on your existing card. 9. DON’T spend or withdraw cash on a 0% balance transfer card If you spend or withdraw cash on your new card, you’ll lose the 0% balance transfer period. If you need a card that allows you to spend or withdraw cash, look at 0% purchase cards instead. 10. DON’T apply for just any 0% balance transfer card Every application you make for a 0% balance transfer card goes on your credit file. Too many applications in a short space of time can make it difficult for you to obtain credit in future, so it’s best to limit them. To help with this, use an eligibility checker to see the cards you’ll most likely be accepted for. It’s also worth learning more about your credit score and improving your credit rating if you need to. The post 10 dos and don’ts of a 0% balance transfer card appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The i3 Energy share price leaps after dividend announcement! Is this AIM stock a screaming buy for me after its robust results? Is this awful survey bad news for the Deliveroo share price? Is Volex a share to buy today? Is the Ceres Power share price attractive?
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  49. NerdWallet: How would ‘free college’ actually work? What experts say could be in the cards (10/03/2021 - Market Watch)
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