credit card

Understanding Credit Card Balance Transfers

A balance transfer is when you pay off a higher interest credit card with a lower interest credit card. You're transferring the balance from one credit card to another. A lot people use this strategy with their personal finances to get out of credit card debt. Credit card companies will often advertise balance transfer deals where no interest will be charged for a certain period of time. For example 0% interest (APR) on balance transfers for 12 months. Sounds like a pretty good deal, right? It can be, but there are some things you should know before making the transfer.

Check Yourself Before You Wreck Yourself: Understanding Your Credit Score

Knowing your credit score is straight forward. You can sign up for an app like Credit Karma and they'll give you credit score. If you apply for a mortgage, the broker will run your credit and they'll tell you your credit score.

Getting your score isn't the problem, the allusiveness lies in understanding how your credit score is actually calculated. The exact formula used to calculate your credit score is like Coca Cola's secret recipe; it's not public information. We do know that calculation consists of five different elements and the weight or level of impact each elements has.

Let's Talk About Your Credit Card Debt

Let's Talk About Your Credit Card Debt

Before I dive into credit card debt, let's talk about luck, personal responsibility and the role they both play in having your finances in order. I only bring this us up so we can go into this conversation with proper perspective. 

It's important to understand that having your finances in order is first a matter of luck and then a matter of personal responsibility.