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Tuesday, May 21, 2024   

Switching heads and bodies
by Scott Bilker
Scott Bilker is the author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. He's also the founder of DebtSmart.com. More about and DebtSmart can be found in the online media kit.
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Scott Bilker

Have you heard this one? A graphic designer working on a high school yearbook mixed the heads and bodies of students. The yearbook company said that it was an "honest mistake." They said the high school required them to make heads the same size and eyes at the same level in all photos, but they clearly went too far. This is a case where digital switching didnít turn out to be profitable because the graphic design company had to pay to reprint all the yearbooks. So what does this have to do with your credit cards?

The graphic designer took switching to a new level. And Iím saying to you that we need to take switching our credit cards to a new level if we want keep our money.

I always switch up which credit cards I use. Not forever. Just for a while. Thatís because I donít want any bank to get cozy with my business. I want them on their toes. Plus, I want to get the lowest rates. And you can too.

I get furious when banks take advantage of me jacking up my rates just because they can. My credit score is 805, and they still mess with me. They still charge me late fees or overlimit fees. I get those fees reversed, but that takes time. Now here comes the good part.

Because I have so many credit cards, Iím always in a position to stick it the banks. I punish them at will! Not only do I transfer my balance from one card to another, Iíll use different cards for purchases as well. The key to being able to do this is to have credit options. You need to have a few lines of credit. Let me explain.

First of all, if youíre maxed out on one card, youíre trapped if you donít have other cards. If that bank raises your rate, itís going to take time to get a new card to transfer that balance. Every day that goes by is a day the banks are charging you interest. For example.

If you owe $10,000, and the bank jacks your rate to 21%, youíre paying almost $6 per day in interest. So, if it takes 45 days to get a new card, it cost you nearly $300. Yikes, thatís expensive. So what can you do?

Well, if you have high interest rate debt, you should be looking to transfer that balance right now. I mean this very moment (and Iíll get to that in a second). Also, you should be sure to have a few credit cards with a zero balance so you can switch to them if any other banks try to take advantage of you. Okay, hereís what to do.

I have a powerful list of credit cards that I would recommend you apply for online right now. You can find it at http://www.debtsmart.com/cards/

Many people have asked me, ďAre these the best banks.Ē Well, no...and yes. Thatís because all these banks have been good to me or bad to me at some point in time. By having many cards, and using them against each other, I am able to maintain low rates. In fact, I havenít paid one cent in interest payments for almost ten years.

Get a new card, use it to transfer your balances, use it to punish other banks, and use it responsibly, and you will profit. Now thatís a switch that works! Hereís one important tip.

When applying for new lines of credit online, or on an application, be sure to do a balance transfer during the online application process because this increases your chances of getting approved for the card. This may be all it takes to get past the application process, so grab your credit card statements and start applying for new cards now! http://www.debtsmart.com/cards/



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