Interest is the monetary phenomenon that keeps you in charge card financial obligation. So, avoid it like the pester.
Understandably, it’s challenging for many people to settle all debt at the same time, which is why the Barclaycard Ring MasterCard deserves a mention. The card’s advantages get you on a path towards a debt-free life, mainly due to its no-fee balance transfers and low 8 % APR.
What’re balance transfers?
Balance transfers allow you to settle one card’s balance by obtaining versus another credit card, thus the transfer of the balance. They can be used to turn high-interest financial obligation into low-interest debt. They can help you press balances to 0 % intro APR credit cards. However, typically, the credit card receiving the balance transfer will certainly charge a balance transfer cost of about 3 % of the moved amount.
So, free balance transfers – an uncommon perk found with the Barclaycard Ring MasterCard – open doors to a little financial creativity.
We show you a couple of ways that the card can be used to lower your interest payments:
1. Debt consolidation
What you are doing basically: Use totally free balance transfers to consolidate debt under a low APR.
Got a disturbing amount of high-interest credit card debt? Here comes the Barclaycard Ring MasterCard to conserve the day. Instead of paying interest at those high rates, merely settle those balances through the Ring MasterCard. You won’t be paying interest at whatever the APR may be on your other credit cards.
Additionally, there’s the side advantage of having just one credit card costs to manage. As a fan of minimalism, specifically when it visits individual finances, I think that having a single payment is conducive to successful financial obligation reduction.
Okay, undoubtedly, this “suggestion” is quite a no-brainer for a credit card that never charges balance transfer costs. However, it deserves pointing out since a lot of individuals only utilize balance transfers to postpone financial obligation repayment. It includes moving a balance to a new credit card with a 0 % initial APR. Unless the intro offer consisted of complimentary balance transfers, you’d be stuck with a balance transfer cost. A vicious cycle occurs when you are only making the minimum payment and racking up balance transfer costs.
Do not shot to delay the unavoidable. Consolidate your financial obligation with the Ring MasterCard and make a solid effort to eliminate financial obligation (not hide it inside some imaginary sock drawer).
2. Enjoy rewards at a low APR
What you are doing basically: Neglecting the high interest rates on your benefits charge card.
If you did not know already, charge card that provide benefits will certainly often lug a greater rate of interest. You ‘d be hard-pressed to discover a card that can dispense generous benefits along with a low APR – especially challenging to discover with travel charge card.
With the Barclaycard Ring MasterCard, that truth is possible.
You ‘d spend as you’d with an existing rewards credit card and then move your balance to the Ring MasterCard – free of charge. You can neglect your benefits charge card’s rate of interest since the 8 % APR on the Ring MasterCard is exactly what applies to that balance.
Sure, I’d normally say that you need to not be wielding a cash money back credit card if you are going to lug a balance. However, in the event that you need to do so, you’ll have the Ring MasterCard to reduce the amount of interest that you ‘d have to pay.
3. Avoid 20 to 25 days of interest
What you are doing basically: Acquiring the privilege of an interest-free moratorium. (Applies just if you carry out the balance transfer at the end of the grace period.)
Having to incur interest charges is the worst part of carrying a balance – it’s inevitable. But, with the Ring MasterCard, you can evade a minimum of 20 days of interest charges!
When you settle a balance with a balance transfer at the very end of another card’s grace period (normally the 20 to 25 days following completion of the billing cycle), that balance didn’t accumulate any interest. Interest isn’t charged on purchases when balances are settled in full by the due date. Your other card’s balance was technically “paid off” by the balance transfer. So, no interest accumulated.
However, if you did not settle the other card’s balance and you held the balance on the other card, you would’ve accrued that 20 to 25 days’ worth of interest.
In fact, Ring cardmembers have the ability to link their other credit cards so that they’re alerted to the due dates of these other cards. You’d be offered the option to perform a balance transfer.
How much interest can you avoid reasonably? It may not look like much, however it matters in the long run.
I have made a chart to reveal examples of how much interest you would’ve paid during the moratorium (the exact same amount you would’ve avoided with a free balance transfer):
|Balance||APR||Daily Interest||Interest accrued over 25 days|
With the many means that the Barclaycard Ring MasterCard can assist you minimize interest payments, it’s not a surprise that it’s also topped MyBankTracker’s list of finest low-interest charge card.
Disclaimer: MyBankTracker wasn’t paid to publish this content, which wasn’t supplied, commissioned, evaluated, authorized, or backed by the business whose items are included. We could be made up through an advertiser’s affiliate programs.