If you take a look at the credit card market today, one of the most popular ones is the 0% balance transfer credit cards. Have you considered the advantages that a zero balance transfer can bring you?
Zero Percent Interest Credit Card Advantages
Sum up all your budgets into one. If you own multiple cards with varying payment due dates and varying interest rates, transferring all these balances over to a zero percent interest will save you from confusion or missing your deadlines.
Save by not paying the additional interest rate. One of the best advantages of a 0% balance transfer is that it enables you to save from shouldering the additional interest charges. If the one you own today charge you with high APR, moving them over to a 0% interest will literally save you thousands of dollars. Thus, you can focus on paying the original amount you owe, minus the monthly interest charges. Would not that be an overwhelming savings for you?
Choosing the Right 0% APR Balance Transfer Credit card
In choosing a 0% balance transfer card, what factors should you consider? Take note that the zero percent rate will not last forever. It is only offered for a limited period of time. This means, you can only avail of the 0% interest within the introductory period. Some issuers give a six-month introductory offer while other offer the zero interest for as long as 12 months or more. Afterwards, your interest rate will be based on the card's regular charges.
It is important to remember that some cards with a zero percent interest offer may charge unreasonably high rates once the introductory period expires. Before signing up, you'll want to make sure the rates will still remain at a reasonable level for a long time. Also, you should do your best to pay off all the balances you transferred before the introductory period ends.
Transferring over your existing balances from one to another should be done with great caution. You'll want to make sure that the one you are transferring over does not only offer a zero percent interest but reasonable terms and conditions as well. Transfer only the balances from your high-rate credit cards. If you're current credit card keeps you reasonably low interest, then sometimes there's no need for you to make the move at all.
Remember, your main objective in transferring over balances from an old card to a new one should be to be able to get off your credit debts more easily. However, once you have managed to get off from your debt, be careful about the tendency to splurge or lose control over your spending. Do not forget that the 0% interest will only apply to the balances you've transferred over and not with the purchases you incurred using your new credit card.