BALANCE TRANSFER. You have a few credit cards that you are currently paying the minimum payment on, which has high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various different credit cards in order to pay it off faster without any more interest or finance charges incurred. 11a) Explain how credit card companies make money on balance transfers (a minimum of 3 ways). 11b) Explain how you would use a balance transfer correctly and “win in the balance transfer game”.

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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BALANCE TRANSFER. You have a few credit cards that you are
currently paying the minimum payment on, which has high interest rates. You
cannot pay it all off before the end of the month and as a result have only been
paying the minimum. Recently you receive an offer for 0% balance transfer
and think it is a good idea to transfer your balances from the various different
credit cards in order to pay it off faster without any more interest or finance
charges incurred.
11a) Explain how credit card companies make money on balance transfers (a
minimum of 3 ways).
11b) Explain how you would use a balance transfer correctly and “win in the
balance transfer game”.
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