Friday, August 15, 2003

Thing to Watch Out for No. 27
When you start getting your credit in shape, you'll start getting better credit card offers. The 0% fixed rate for __ months offer is inevitable. If you go ahead and transfer, be sure to check out the Purchases APR before you buy anything with that card, even if you plan to pay it off the next month. Most credit card companies have what is effectively a First In, Last Out policy. Your payments go to the lowest interest item first. So if you do a big transfer at 0%, then a small purchase at 15%, you'll be paying that 15% until the big chunk's paid down. Hey, why else would they offer you 0% interest on a big chunk of change? This is capitalism, not charity work.

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