Finance Tips

Whether you are paying a 10% interest rate or 20% interest rate, a 0% balance transfer can save you hundreds of dollars a year in interest. For example, a person with only $2000 in debt on a credit card with a 12% interest rate will spend close to $250 on interest this year. That’s a fairly sizable price for what many consider a small amount of credit card.

In this article, we will explore the simple process of doing an online balance transfer and examine the potential savings.

Step 1 Visit a credit card comparison site to find a credit card that charges a 0% APR on balance transfers for one year. This part shouldn’t be too difficult, as many credit cards provide these offers. (Keep in mind, however, that you can’t transfer a balance to a new card from the same issuer. Thus, if your debt is with one bank, you must transfer it to a different bank. This does not mean you can’t transfer a balance from one Visa to another. The Visa must simply be issued by a different bank.)

Step 2 Before you apply, closely review the credit card’s terms and conditions. Some credit cards advertise a 0% APR for 1 year, but upon closer look, reserve the right to only offer the 0% rate for 3 to 6 months.

Step 3 Once you’ve determined that the length of the balance transfer is 1 year, take a look at the interest rate offered at the end of the introductory period. Try to find a credit card with a low long term APR. However, if you do not repay your balance in full by the end of the 0% period, you can always look into transferring your balance again.

Step 4 Now that you’ve found the right credit card, complete the online application and submit your balance transfer information online. This will expedite the process of moving your balance from the high interest credit card to the one with the 0% APR.

Doing a 0% balance transfer online is a simple process that can save you hundreds, if not thousands of dollars in interest over the course of a year. If you are currently paying your credit card company money to borrow funds, balance transfers are an easy way to stop this trend. All it takes is ten minutes to get a new credit card. There are very few other things you can do to save this much money so quickly. And there are very few reasons not to take advantage of 0% balance transfers.

Banks are fairly imaginative people. I can give it to them for thinking new ways to entice you to keep spending despite these hard times. Now, they have come up with these new 0 balance transfer credit cards offers with enticing features to match.

So, exactly what are these new 0 balance transfer credit cards offers flooding the market nowadays? They are new ways of luring and hooking new customers with excellent histories. Those with low bank ratings need not apply for these new ones at all. They will surely get turned down as issuers are not entirely stupid people.

Since the economy has turned upside down lately with no relief in sight for the near future, people who still have managed to maintain their bank payments with no late or missed payments is getting fewer. Many people have fallen in their standings and issuers are in a rush to pirate the existing good clients away from their present issuers.

One way to do that is to offer these 0 balance transfer credit cards, the zero there meaning zero interest for the first 12 months from date of approval. It will allow you to switch your existing high-interest outstanding payment from the present account to another bank issuer. That switch alone will save you a bundle if you are carrying a substantial payment monthly.

Even counting the one-time service fees (capped at US$35 or US$50 depending on the issuer) or 3% of the transferred amount (whichever is lower), it still makes sense on your part to effect the switch. This is because some 0 balance transfer credit cards also allow you to make purchases for the first six months at no purchases. The catch is that you need to closely monitor all your monthly due dates so as not to miss or make a single late payment.

If you even make one late payment that zero interest offers evaporates quickly. You are highlighted as a high-risk visa holder who can default anytime. The new interest rate could even be higher than what your previous charges were.

People who keep changing their visa accounts are called “hoppers” who pose a big risk to issuers. These types of people are in continual danger of defaulting because they have already maxed out their existing visa limits.

Using 0 balance transfer credit cards features can give you significant relief from the usual money woes. This is only a temporary solution at best so you need to find ways to cut your expenses or increase your income sources or both at the same time. 0 Balance transfer credit cards allow you to consolidate all debts into only one account.