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.

Applying for a no balance transfer fee credit card has become very popular. During these difficult economic times the consumers are trying hard to cut expenses and for people in credit card debt it can be mean a significant amount of money saved by reducing the interest rates on the credit cards with large balances.

Many cards offer a 0% introductory offer for a period of time and that means you can apply the entire payment to the principal and as a result significantly reduce your debt as long as you maintain the same monthly payment as if you would have been charged interest.

The selection of cards with no balance transfer fee is decreasing, but even if you are charged a fee it can still be a good deal. The standard transaction fee is 3%, but the rate on your current card is probably closer to 10% APR. That means if you have a $4000 balance that is being transferred you will be saving almost $400 in interest the first year without paying a fee, but even with the fee you are still saving over $250 compared to your current card.

This is a very good deal for the consumer, but it is important to stay disciplined during the introductory period. If you read the fine print it will indicate that if you fail to make a payment on time you will be charged the default rate, which is over 20%. If this happens you are not only paying a higher interest, but you have also increased your balance by 3% if you were unable to find a card with no balance transfer fee.

You also need to remember that the introductory offer will expire at one point. Unless you plan on paying off your debt within this period it is important to find a card that offers the same or lower rate than your current card.

Anytime you can make a purchase of good and services and do not pay interest it is to your advantage. You are using other peoples money, OPM, and it gives you a leg up. The disadvantage is paying off that debt in the future. The key is to use the opportunity to your advantage and not end up paying your hard earned dollars in interest payments.

The Good

Paying no interest gives the purchaser leverage with their funds. Many issuers offer this rate and it simply takes a little investigative work to find a good card. It is a simple task to go on line and see multiple offers for 0% APR. This is a wise move for a family that needs to micro manage their funds. A family can float debt for a time and use this credit line to get through a rough time in their personal budget.

If you are currently carrying a balance on a standard card at 12% to 18%, look for an offer on a balance transfer card. Most of these cards offer 0% on the transfer balance from 3 to 12 months. This can give you immediate relief on an existing balance. The key is to budget your funds and get this balance paid off before the introductory period is over.

The Bad

In spite of the good intentions one may have there are some traps along the path. First and foremost is to avoid being in the position that makes you carry a balance on your credit card. We have all had an emergency arise and being here can happen to anyone. Life seems to have a way of sneaking up on us now and then.

Transferring your balance to another card is a good strategic move if you find yourself in a bind. Making this move too often can have a negative influence on your credit rating. Opening and closing credit cards is not favored by credit reporting agencies. Be careful about doing this too often.

Credit card issuers that offer this 0% rate will usually limit the time. Most offers are between 3 and 12 months. Take note of the time frame. If you apply for a balance transfer card you may 0% on the balance but you will pay interest on any new purchases.

There is both good and bad for 0% credit card offers. Using these cards is wise but be aware of the fine print and use a budget to get it paid off during the time allowed. Compare some of these offers.

Are you in the market for credit card transfers? Without question balance transfer offers hold the potential for cardholders to realize substantial savings. Note that I used the word potential here. When contemplating transferring a balance from one card to the next, there are several factors to take into account.

First and foremost you are going to want to familiarize yourself with the terms of the offer. You can do that by reading the disclosure statement, which is sometimes also referred to as the terms and conditions. There you will find all the important details including information about the interest rates, fees and payment periods, credit limits, etc.

Oftentimes credit card transfers will be advertised with a 0% or low APR introductory rate. These will be offered for usually 6 months and sometimes up to 12 months. They can be a great deal if you are currently carrying a balance on a high interest rate card. But you also must look past that as well.

When I say look past that I mean you have to know what the interest rate is going to be when the introductory rate expires. If you are going to aggressively pay down your current balance then finding a 0% APR or low interest rate credit card transfers is a fantastic way to pay off the principal while being charged little or no interest.

However, many people make the mistake of either forgetting or not realizing that the predetermined interest rates on the offer will kick in when the introductory period ends. Be sure that you know exactly what those rates will be before you transfer your balance.

Be honest with yourself and question whether you will be able to pay off your balance in full before the introductory period expires. If you do not believe that you will be able to pay it off then you have to make sure that the interest rates will be affordable and not excessively high.

Compare those rates with what you are paying now and that will help you determine if doing a balance transfer is in fact in your best interest. You also must take into account any and all fees that are charged such as annual fees, late fees, and so on. All these factors determine how much your credit is going to cost you.

And finally, and this is very, very important, you must know what the balance transfer fee is going to be. Most major issuers now charge a fee to transfer balances from one credit card to another. It usually ranges in the neighborhood of around 3% of the total to be transferred but it can be higher or lower depending upon the offer.

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.