Want to transfer your high interest credit card balance to a 0% interest or 0% balance transfer credit cards? Good for you because a credit card with zero APR introductory offer can help consolidate your credit card debt and reduce your interest cost, if you can find one. You can put all your debts into one place by transferring them to a new credit card with 0% interest rate.
Zero percent interest credit cards come in many offers and deals. To get the real benefits of a credit card for transferring balance you’ll need to compare different 0% balance transfer credit cards offers. Below you can find several things to consider before you get a new low APR credit card.
Things to Look At On 0% Balance Transfer Credit Cards Offers
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 up to 18 months. Other banks allow a fixed low interest rate on the balance. You’ll have to compare whether 12 months of 0% interest or a low but longer-term interest rate is better option for paying off the balance.
2. Balance transfer fees. You’re lucky if you can get a card with no balance transfer fee because most companies charge an initial fee to transfer balances, which can amount 3%-4% of the balance and a cap of $50-$75 on the fee. Make sure you check how they charge you for the transaction and whether the savings you get on the 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 new purchase.
4. Interest rate after the interest free period expires. How much is the interest rate when the introductory period expires? This is essential for calculating the new interest charges to your remaining balance and your monthly payments as well. 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 high enough to cover the whole amount of your credit cards balance? Make sure 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, 0% 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.
Get One of the Best 0% Balance Transfer Credit Cards
Once you have found the best zero percent balance transfer credit card check your credit rating. Usually only people with good credit scores can qualify for zero or low interest rate offers. If you have fair credit, for example, check with issuing companies whether you can get a card and at what rate. Also, because the terms and conditions of these offers may vary greatly make sure you read the fine print.
Once you get a card that you want start consolidating your credit card debt by transferring your balance to the new card. Also, remember to 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. Once again, make your monthly payments on time. Ensure that your dues are cleared regularly and you’ll be sure that the zero or low-interest rate remains low.
What to Do Now?
Just try to get one of rare few 0% balance transfer credit cards for consolidating your debts. The 0% balance transfer credit card will work for you if you pay off the balance before the introductory period runs out. The longer the introductory period the more money you can save from interest payments.