Facts To Note About 0% Balance Transfer Credit Cards
With the competition going tougher by the minute
, credit card companies come up with new and exciting ways to attract potential card holders. One of the most exciting deals in the market is the zero percent balance transfer credit card.
As its name implies, a 0% credit card balance transfer is best suited for people with existing balances from other credit cards with high interest rates. By moving your balances to the new zero interest rate credit card, you can start paying off your debts minus the additional interest charges.
A 0% balance transfer credit card gives you a chance to pay off all your balances without interest rate within the allotted time period. This time period may be from 6 months to 12 months or longer depending on the credit card issuer. Imagine how much money you can save from the interest charges alone when you transfer over your balances from a high-rate card.
Risks to Avoid from Your 0% APR Balance Transfer Card
However, as promising as they seem to be, not all balance transfer credit cards with zero interest rate give the best deals. Here are some factors that you should not fail to miss when choosing a balance transfer credit card:
* High balance transfer fees. You may be offered 0% APR, but would you be charged with a high transfer fee? Some 0% balance transfer credit cards will cost you as much as $50 for every balance you transfer. You'll still want to look for a credit card with reasonable transfer fees.
* High penalty charges. Watch out for a 0% balance transfer card that imposed high penalty charges if you fail to submit your monthly payment on time. You can also get disqualified from enjoying the 0% interest rate if you missed or delayed with just a single payment. Even worse, some credit cards will change your 0% APR to a variable APR that can increase unpredictably.
* High interest rates after the introductory offer. How much will the interest rate be after you enjoyed the zero percent APR for six months. Watch out! You can be confronted with an unreasonable interest rate right after your sixth month introductory period ends.
Do You Need a Zero Interest Balance Transfer Credit Card?
A zero percent balance transfer credit isn't really for everyone. If you're only going to transfer a small amount of balance, then perhaps there's no need for you to apply for a 0% balance transfer card and focus on paying off your balance instead. Also, credit cards with 0% APR offers usually require good to excellent credit from a card holder. If you have poor credit, you could be denied when you submit your application.
If you do need a 0% balance transfer card, make sure that you are aware of the complete terms and conditions of the card. Take advantage of the introductory period and do your best to finish paying the entire balance you transferred over to your zero interest balance transfer card.
Copyright (c) 2009 Liz Roberts
by: Liz Roberts
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