The snowball method focuses on paying off the smallest debt first, regardless of the interest rate, while still making minimum
payments on your other card cards and debt.
The card is especially great for consumers who spend mostly in non-traditional categories that don't earn
bonuses on other cards with either rotating or set merchant categories.
The calculation reflects 20 % of monthly spend on eligible travel, dining and entertainment purchases and 80 % of the
spend on all other card purchases.
On top of that, unused accounts don't do much to help your score — unless you need them to offset high
debt on other cards.
The bonus categories make it easy to rack up significant numbers of points and they can combine with points
earned on other cards to unlock excellent redemption values.
Therefore, you are working three times as hard to get the same bonus that you could
get on other cards of this type.
Credit cards — You can't technically pay off one credit card with another, but you can get a cash advance assuming you have available
credit on the other card.
If you have additional funds available after paying off the canceled card, pay down your balances
on other cards as much as possible before you close the account.
Therefore, you are working three times as hard to get the same bonus that you could get
on other cards of this type.
If your purchases don't fall into the bonus categories
offered on other cards, the simple earning structure on either of these cards might serve you well.
It's important to continue monitoring and making payments
on your other card account (s) until you confirm the balance transfer is complete.
We've talked about making your minimum payments
on other cards while working to pay down those with the highest interest.
You can find similar
benefits on other cards, though those usually require you to search for the lower prices yourself, which can be time consuming.
Since I was carrying a balance of nearly $ 20,000
on the other cards at about 8 % this would save me about $ 1800 the first year!
Another alternative is to pitch those customers a balance - transfer credit card that would consolidate the balances
held on other cards and reduce the rate they're paying on their debt.
However, if your credit reports show balances
on any other cards then read on, as closing cards could hurt your score if you're not careful.
At the same time, the other bonuses
on other cards usually only require far less spending to reach the same rewards.
And you'll still have all your regular expenses to continue helping you on your way toward the minimum spend
requirements on other cards.
It comes with an exceptional 4.0 percent back on dining, which is not found as a permanent category bonus
on any other card currently available.
You also get two points per dollar spent on the first $ 50,000 at gas stations and hotel stays purchased through the hotel, and one point per
dollar on all other card purchases.
Our editor's take: Earn higher cash - back rates in popular business spending categories, 1
percent on other card purchases, and pay no annual fee.
This makes sense because this card is targeted at people seeking to make balance transfers, meaning they have outstanding
debt on other cards.
Therefore, even though the total value isn't as high as what we
see on some other cards, you are likely to find more opportunities to use it.
Before using a credit card in this manner, we would only charge around $ 300 - 500 /
month on our other cards, and pay the balance in full every month.
If you have
points on other cards, move them all to one account so you can redeem them for bigger awards.