Finance Tips

Zero percent balance transfer credit cards are a successful marketing strategy of credit card providers which provide enormous benefits to customers. The inducement of zero interest charges, even if only for a limited period, is highly attractive to credit card borrowers. Whether people are suffering serious financial disadvantage as a result of credit card debt or simply paying more than they have to, balance transfers to low rate cards just make sense. If interest payments are robbing your family of a decent quality of life and financial security, then transferring your credit card balance to an introductory card can give you much needed respite and an opportunity to get back on your feet.

There is no doubt that juggling high monthly credit card payments on multiple cards is a recipe for financial stress and even disaster. The opportunity to alleviate that stress and preventing financial derailment offered by zero percent balance transfer credit cards is worth taking advantage of. There is so much competition between credit card providers for balance transfers that you will have a lot of different cards to choose from.

The most beneficial zero percent balance transfer credit cards are those with an introductory period of at least twelve months, low or no balance transfer fees, and competitive ongoing fees and charges. Any respite from high interest charges is better than none, however, the longer that period can be, the better off you will be. As well as looking for the longest zero interest term possible, you should also consider the cost of transferring your balance, ongoing fees and charges and the potential costs if penalties come into play. Take the time to read the terms and conditions of any credit card you are interested in applying for in order to avoid costly mistakes.

A selection of zero percent balance transfer credit cards can be found online by simply conducting an internet search. The quickest and easiest way to compare introductory offers is to take advantage of a credit card website that has already done the initial ground work for you. These sites offer a range of alternatives that you can consider and provide all the relevant information to help you decide. Generally speaking, they also provide the opportunity to apply online via a web form. This is the most convenient way to organize a balance transfer as you can do it when it suits you and not a lending institution.

It is important to make the most of zero percent balance transfer credit cards by using as much of the interest savings as possible to reduce your credit card balance. The introductory period will come to an end and you will once again have to pay normal interest payments unless you choose to transfer your balance to another introductory offer card. Therefore, it is essential that you make the most of your interest free period. Use as much of your interest savings as possible to reduce your credit card balance while removing the financial stress of your previous situation. If you do this, you will move from debt to stability and find yourself in a much more empowering position.

If you have any kind of existing credit card balances, balance transfer credit cards may be just the thing you need to reduce your credit card debt. They can also help you save money in other ways, too. Here are some ways that a balance transfer credit card can save you some money.

0% APR Interest

The first way it can save you money is that, hopefully, the new card gives you a 0% APR interest introductory offer for balance transfers. You will need to double-check the fine print on the credit card to be sure that this rate applies to balance transfers. Most often it applies to the interest rate on your purchases, and only on some cards will it apply to transfers. If you also get that rate of interest on your transfers, then be sure to notice how long that you get that rate for. The rate on balance transfers is often different than the length of the introductory offer.

The 0% APR interest generally applies to your purchases made during the introductory time period. This gives you great savings over that time frame, but be sure to pay off the balance each month – and on time, for the best savings. Any late fees take away any savings you get, otherwise, and you may actually end up paying more than if you had made your purchase at retail prices.

Balance Transfer Fees

Another thing you need to look for is to see if there are any fees associated with the transfers. Some balance transfer credit cards will charge up to a hefty 4% of any amount transferred to the card. While this figure may sound good when compared to the interest on the other card, keep in mind that many cards will not charge anything.

Rewards

Choose your balance transfer credit card on the basis of this option, too, since you can definitely save some money here, if you get the right card. Rewards come in many types, but if you get one that is geared to your needs (most expenses per month), then you will probably be able to save considerably. A card with rewards on it means that you get either discounts on future purchases, rebates or cash back. This amount of savings can certainly add up after a while, and can put a smile on your face when your bill comes each month.

Remember to compare a number of balance transfer credit cards in order to see what kinds of deals are available. Also, be sure to look at the various fees, so that you do not lose the value of your rewards. There can be many fees on a credit card, but by shopping around, you may be able to get one that does not have very many, or, has fees that you can avoid with prompt and full payments. Get as low of an interest rate on the card as you can for the time after the introductory time period runs out – or get a new card.

Now that the holidays have ended, many of us are looking for ways to save some money on those holiday purchases we may have spent a little or a lot extra on and those few extra pounds we gained. However, we can only provide help in the area of saving you money, you’ll have to consult someone else for those few extra pounds. If you weren’t able to pay off your credit card balances right away from the holidays or have some outstanding balances from before the holidays, then consider a balance transfer credit card. A balance transfer credit card can help you save money on your current balances that may be accruing interest.

To help you save more of your hard earned money, here is a list of the best balance transfer credit cards on our website.

1) GM Flexible Earnings Card – With this card, you get a 0% APR for 12 months on up to two balance transfer requests made at the time of your application. Transfer fees of 3% do apply to the balance(s) transferred with a $10 minimum and a $99 maximum. There is no annual fee with the card and new purchases earn 1% cash back or 3% toward an eligible new GM vehicle.

2) Citi Diamond Preferred Card – This card isn’t just named a preferred credit card. This card offers a 0% APR on balance transfers for 6 or 12 months depending on a review of your credit application. The introductory APR and period also apply to new purchases you make. Citi does charge a 3% balance transfer fee on each of the balances transferred with a $5 minimum. The card has no annual fee and a very competitive interest rate after the introductory period.

3) Blue from American Express – No more feeling blue about high interest rate balances when you apply because you can get a 4.99% fixed APR for the life of the balance! A 3% balance transfer fee applies to each balance transferred and transfer fees are capped with a $5 minimum and a $99 maximum. All your new purchases receive 0% APR for up to 15 months and no annual fee.

4) Chase Platinum Visa Card – This card from Chase will let you transfer balances and receive 0% APR for up to 12 months. The introductory APR and period is also available on all purchases. All balance transfers are assessed a 3% fee with a $5 minimum and a $75 maximum. There is not annual fee to use this card.

5) Bank of America WorldPoints Platinum Plus MasterCard – This versatile card from Bank of America almost does it all; 0% APR balance transfers for 12 months, a very competitive APR on purchases and one of the most comprehensive reward programs available. Transfers are charged 3% of the balance or a minimum of $10. Bank of America does not charge an annual fee on this card. For those with large balances to transfer, Bank of America is generally considered to be the most generous with credit limit amounts.

For more information on each of these cards, please click on their corresponding links for access to further information and a secure online application.

Finding a credit card that offers no fee balance transfer is not as easy as it once was. Two years ago, more than a dozen credit cards offered these deals. At the time of writing, only two credit card companies offer no fee balance transfers. Altogether, they offer only three credit cards.

If you are unfamiliar with balance transfers, let me begin by explaining the fee structure. With most offers, credit card companies charge three percent up to a maximum of seventy five dollars for every balance you transfer. (Some companies have even eliminated the maximum fee or raised it to as much as two hundred and fifty dollars.) For the purpose of this article, we’ll work with the average balance transfer card. Below are three balance transfer situations that illustrate the costliness of transfer fees.

Situation #1: You have three credit cards, each with a twenty five hundred dollar balance. Each balance you transfer will cost you three percent of twenty five hundred dollars, or seventy five dollars. This will bring your total fees to two hundred and twenty five dollars. While this is still substantially less than the one thousand or more you would pay in interest, it does reduce your savings by twenty five percent.

Situation #2: You have a balance of five thousand dollars on one card and twenty five hundred dollars on another. Each transfer will cost you seventy five dollars in fees, bringing your total balance transfer expense to one hundred and fifty dollars. While this is a slight savings from Situation #1, you still lose a decent portion of your overall savings.

Situation #3: You have one credit card with a balance of seventy five hundred dollars. Because of the seventy five dollar maximum, your total fee will only be seventy five dollars, or one percent of the amount you transfer. This does help reduce you balance transfer fees to a reasonable level. However, why not avoid the fees altogether.

The way to avoid the seventy five to two hundred and twenty five dollars in fees you would incur when transferring a balance, opt for a zero percent interest credit card that offers no fee balance transfers. As their name implies, this type of credit card will save you on the annoying fees attached to most balance transfer offers.

There are a few things one must keep in mind about no fee balance transfers. First of all, most of these offers only provide a zero percent interest rate on balance transfers, not on purchases. Thus, if you apply for one of these cards, be sure to avoid making new charges on it. Secondly, be sure to make your transfers when you apply, as most no fee balance transfers require you to transfer your balances when you submit your online application. Lastly, since you are not paying interest for a full year, don’t feel rushed to pay off your credit card. Stash your money in a high yield savings account and earn interest on your money until the zero percent interest rate is about to expire. This way, you not only save a few hundred or a few thousand with your 0% balance transfer, you can also earn another four to five percent on your money.

What would you say if I tell you that credit cards could be beneficial for you in some situations? While many will advise you stay away from credit cards, there are specific situations where getting a credit card is highly recommendable, if you are struggling with your monthly bills, something no unusual nowadays because of the world economic state, then consider apply for a credit card with zero APR on balance transfers.

Credit cards providers are very active offering promotions and uncountable bonus that you can get just by using your ones, after all their business is all about you using them. However, after a while our human nature is exposed and we realize that we are carrying to much debt, we crossed the line and it is time to do something about it, if we do not do it, then we will pay a higher monthly interest rate that, sooner or later will be impossible to pay with the well know consequences, poor credit score or bad credit records for example.

Zero APR balance transfer credit card then, are a good alternative if we are planning getting control of our finance, as you can see 0% interest rate sounds too good from the beginning, while this is undoubtedly true there are still some aspects to be analyzed and, we have listed them for easy research.

1.- A zero APR for a period of time of 1-2 months is not useful at all, then you need to apply with a credit card provider offering you a zero APR for a span of time as long as possible.

2.- It could be obvious but if you have to pay any fee for balance transfer, then “0% APR balance transfer” is not true, just make sure that you pay nothing, zero, nada for these kind of transactions.

3.- After the introductory period of time with 0% APR (as long as…) you will start paying the regular APR, then the one offering the lower regular APR got some extra points in your credit card providers list.

4.- Are you allowed to transfer the entire balance of your high interest credit card, or just a part of it? you will not get all the benefits if you can transfer just some part of your balance.

5.- Are the purchases made with your credit card 0% APR? it is on your best interest having zero APR on your purchases as well and, as a bonus, a good reward program would work very good.

6.- Are you going to pay on time? if you fail making your payments on the due date, you will be charged the regular interest rate, instead of the zero APR introductory rate offered.

To sum up, consumers having credit cards debt have an option with 0% APR cards, they just need to be sure they are getting a zero APR for as long as possible, that there is no payment for balance transfer and that they can transfer the total balance and not just part of it, then getting a low regular interest rate after the introductory span of time offer is highly recommendable, and as usual, understand that by paying on time it is the only way to keep the zero APR offer while building good credit history.