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If you're seeking a short-term loan to make a down payment or for improvements on a property, check out your own wallet before visiting your neighborhood bank.

Credit cards can be a terrific way to finance your real estate endeavors, as long as you use them wisely. That means accepting only those cards you think you can use, reading the fine print, planning carefully how to use them and then sticking to the plan. And don't forget to factor in a strategy for paying off what you already owe.

Wise use of the cards also can help you build good credit and even track expenses (if you use different cards for different types of purchases). Most cards will even let you make a interest-free loan to yourself, if you pay off charges before the end of the grace period, usually about 28 days.

Balance transfers

If the offers flooding your mailbox are tempting you to play the balance-transfer game, make sure you know what the rules are.

Here's how it works: You get an offer from a credit-card company offering a low, low interest rate on balance transfers. By accepting, you can pay off a higher-interest balance on another card, a credit line or installment loan--usually anything with an account number.

It may sound like a great way to pay off that high-interest department store card, but before you accept, check the details: Is there a fee to transfer balances? Does the card have an annual fee? How long is the rate good for? What does the rate increase to after the introductory period is over?

You can save significantly by taking advantage of the introductory rates. The key is to keep a calendar--you need to know when the introductory cycle is over, so you can either pay the balance off before the interest rate goes up or transfer it to a card with a more favorable rate.

Cash advances

If it's cash you're looking for--beware. Cash advances usually carry a fee--3 percent of the amount sought, for example, and they hardly ever qualify for the low interest rate specials.

Before you accept a new card offer, take a closer look at the ones you already have. If your history is good, your current creditor may be willing to offer you concessions to keep your business. Call the customer service department and tell the representative the details of the offer you are considering. The company may be willing to give you a special rate for purchases, a low interest rate all the time or no-fee transfers. Doesn't hurt to ask for an increase in your credit limit either. Often, all it takes is a phone call.

This way you avoid the pitfall of having handfuls of credit cards that you don't use. Besides being a paperwork nightmare, it could negatively affect your credit since potential lenders look at the amount of credit available to you (not necessarily the amount you are using) to judge whether you are a good candidate.

Secured cards

Don't have any cards because of bad credit? Consider obtaining a "secured" card, where you can charge up to the amount (and sometimes over) of a deposit you have supplied. This can quickly build up your credit.
Be sure that any offer you accept is from a reputable company. You can get a recent list of the best consumer credit cards by sending a $5 check to CardTrak, P.O. Box 1700, Frederick, Md. 21702, or by checking most large-circulation newspapers.

Example

Credit-card balance: $4,500
Payment per month: $230
Interest paid for six months at 16.9 percent: $346
Interest paid for six months at special rate of 2.9 percent: $49
Savings by transferring balance for six months: $297

Key to success: Move or pay off balance at end of introductory period.

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