0 Balance Transfer Credit Cards

Looking to get 0 balance transfer credit cards for debt consolidation? Credit cards with zero APR introductory offers are, theoretically, a good source of funds for consolidating your credit card debt. You can put all your credit card debts in one place by transferring your debt to a new credit card with 0% rate of interest for an introductory period.

Zero percent interest credit cards come in many offers and deals. In order to get the real balance transfer benefits of a new credit card you need to compare different 0 balance transfer credit card offers. Here are several things to consider before you choose a new lower APR credit card to transfer your high interest credit card balance.

Comparing 0 Balance Transfer Credit Cards

1. Length of introductory period. The period of zero interest varies greatly. Some issuers offer low interest rates for up to 12 months or even more; others allow a fixed low interest rate on the balance. You'll have to calculate whether 12 months of 0% interest or a lower long-term interest rate is better option for paying off the balance.

2. Balance transfer fees. Most credit card companies charge an initial fee to transfer balances, which can amount 3%-4% of the balance and a cap of $50-$75 on the balance transfer fee. Make sure that you know how they charge you for the balance transfer transaction and that the savings you get on interest outweighs this transfer fee.

3. Interest charges for new purchases. Learn what the 0 percent interest applies to. Some credit card issuers only offer the 0 APR on the balance transfer amount and not on new purchases. This means that you will be charged a higher interest rate when you make a purchase.

4. Interest rate after the interest free period expires. You need to know how much the interest rate will increase when the introductory period expires. This is essential for calculating the new interest charges to your remaining balance and your monthly payments. Make sure you have a plan for paying off whatever balance you transfer before the rate increases.

5. Credit limit. Another thing to consider is the credit limit on the new credit card. Is it enough to cover the whole amount of your credit cards balance? Make sure that the new credit limit suits your needs as going over it would take you out of the special introductory offer and lead you to other costly penalties.

6. Other benefits. In addition to any savings you might realize by consolidating your debts, balance transfer credit cards also come with other benefits. Some offer a rewards program. Others provide a low interest rate that kicks in after the introductory period is over. Just determine what benefits that you’ll want to get after your debts are paid off.

Using 0% Interest Balance Transfer Credit Cards

A zero percent balance transfer credit card can be a good debt consolidation, if it is used properly. Once you've transferred your balance, create a payment plan and set aside money each month for payments. Make sure you don’t miss a payment or make payments late otherwise the zero percent interest no longer applies and you’re paying more in interest charges than you were before.

Overall, a 0% interest credit card balance transfer deal can work for consolidating your debts. This is especially true if you pay off the balance before the introductory period runs out. However, as the terms and conditions of these credit card offers vary greatly, be sure to read the fine print. The best 0 balance transfer credit card can save you a lot of money in interest payments.