0 Balance Transfer Credit Card
Benefit Of 0 APR Balance Transfer
A 0 balance transfer credit card or 0 APR balance transfers
can be a cheap and effective way to manage your credit borrowings,
when used responsibly.
However, increasing demand for 0% credit cards, not to mention
interest rate rises have seen credit card companies impose higher
balance transfer charges and restrictions on some of what were
previously fee-free credit cards. While finding a 0% card isn't
difficult, you will need to be mindful of the fees and charges it
will cost you to get one.
As you have seen, a balance transfer credit card
offer a means of transferring high interest credit card debt over
to a 0 interest balance transfer credit card, - making your debt
managable while buying you some extra free time to pay off a
Using Balance Transfer Credit
When deciding which balance transfer credit card offer is right for
you, the most important factor will be the 0% element. Moving
an existing high interest credit card balance over to a 0 balance
transfer product, is an excellent way to get yourself some free
credit, at the same time you are reducing your credit card credit
To use 0 interest credit card offers to your advantage, you will
need to source the longest 0 APR balance transfer period you can
get. This will typically be 3-6 months and even up to
1 year or so.
A second important consideration will be the
cost element. A 0 APR balance transfer credit card does not mean
you will not incur a balance transfer charge or even an annual
credit card fee, so do your homework and aim to find a fee free
balance transfer or better still, a no fee credit card.
Once you have accepted the best balance transfer credit card
offer, move the money immediately. Most balance transfer credit card
offers will usually have a requirement that you use it within
a period of approximately six weeks before it expires.
If you find that the credit card credit limit on the balance
transfer credit card is insufficient to cover the existing
credit card debt to be transferred, there is nothing to stop
you from transferring the maximum you are allowed. You can
always source another 0 balance transfer credit card to
accommodate the remaining debt.
Stay alert to other fantastic no fee balance transfer credit
card offers and especially during the last two months before
your existing 0 balance transfer credit card offer expires.
This is important, since you will want to apply for a new
0% credit card balance transfer to start the process all over
again. But you must be sure to do the balance transfer
to the new card well before the transfer period on the existing
You can continue repeating the above steps over time, which
will keep your debt interest free. A word of warning! Never
spend on any of your 0 balance transfer credit cards, no matter
how tempting the cashback rewards or incentives
are, unless of course the 0% balance transfer rate also applies
to any purchases.
Just don't delay in shifting over to the new 0 balance transfer
credit card. If you leave it too late, the interest will
rise to an extortionate level on your existing card and erode
any gains you have made.
The real beauty of this system of getting free credit is that
it enables you to pay off a greater amount of your debt instead
of your repayments servicing high interest charges.
Risks Associated With Juggling
0 Balance Transfer Credit Cards
How many credit card balance transfers should you do?
Although using the 0% balance transfer credit card strategy is an
excellent way to avoid paying interest on credit card credit
borrowings, you need to approach this practice with caution.
The best customers from a credit card company's perspective
are those from whom they profit through interest payments.
Further, credit card suppliers take a dim view of people who
consistently balance transfer debt to evade paying interest.
Too many balance transfers can therefore lead to credit card
companies blocking your applications, which carry the risk of
you being left with a large credit card debt balance at a
significantly higher rate of interest once the low introductory
APR rate period expires.
In addition, if you simply continue to obtain 0 balance transfer
credit cards from different credit card companies without
reducing your credit card credit debt in the process, you send
a message to the credit card companies that you are in a dire
financial state and are desperate for credit card credit. This
can seriously harm your credit standing and future borrowing
It is crucial that you are not late with, nor miss any of your
repayments. If you do, you run the risk of losing your
0 balance transfer credit card rate and your account being
reverted to a much higher interest and/or being charged a penalty
fee. You should at the very least ensure you make the
minimum payment by the due date.
How many credit card balance transfers you choose to do is down
to you. Just remember that when used wisely, credit cards can be
an effective financial tool - provided you:
Control the frequency and use of 0 balance transfer credit cards
Be sure to never miss or make late payments
Make note of any balance transfer charges or annual fees
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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