0 balance transfer credit cards

If you’re deep in credit card debt, a 0 percent interest balance transfer credit card is an excellent tool for debt elimination. The zero APR credit card is offered by credit card companies as a means of getting you to switch accounts to them, and typically offer a low — often 0%, but typically 2-3% — initial interest rate for the first six to twelve months.

The strategy is simple. Transfer your high balance accounts to a 0 APR credit card, cut back on frills and aggressively pay down the transferred balance.

It’s very important to remain fiscally disciplined. While doing this, get in the habit of not using credit for anything. The weak point of the strategy is you. Get out of the habit of carrying your credit cards with you; if you absolutely have to use the plastic money to purchase things, use the debit card for your bank account instead.

There’s more to debt elimination than just the use of a zero percent interest credit card. You also need to log what you spend money on, and why. Look for expenses that can be trimmed out. Do you hit up a Starbucks every morning on the way to work? Those $4 lattes, over a typical 23 day workweek, add up to $92 that can go directly to debt reduction.

Do you eat out for lunch rather than packing one yourself? Most lunches can be packed for $1 per day or so; compare this to the typical $7 lunch at a fast food joint, and multiply by the number of working days in a month; just this little switch can trim $138 from your expenditures in a month. Combine that with skipping the morning latte, and you’re on track to pay off $3,000 in credit card debts in one year. At a 0% interest balance transfer card’s introductory rate, that $3,000 goes directly into principal reduction, not paying off interest.

Not all 0% interest balance transfer credit card offers are identical — be sure to shop around. Likewise, be sure to mark the payment dates on your calendar and send them in a week early or pay them electronically. If you’re very careful about watching the low interest credit card offers, you can stage debts between multiple cards, taking advantage of low interest rates.

Each time you’re about to run through the low interest introductory rate, be prepared to move the balance to another low interest introductory rate card. You can’t do this indefinitely, because each time you do a balance transfer of this nature it shows up on your credit report, and eventually, the offers will dry up.

Finding a good 0 percent interest balance transfer credit card can take a bit of research, but with the aim of getting out of debt, the effort pays off quickly.

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Balance transfer credit cards are cards that are ideally suited to serving as rollover credit card accounts for those who are looking to simplify their finances by merging all of their credit card account balances into one single account. This process helps the consumer gain control of his or her finances by simplifying the process of paying and also has the potential to save the consumer money if the balance transfer credit cards offer competitive interest rates or other perks.

Those who are looking to merge all of their accounts using balance transfer credit cards need to keep a few things in mind. The most important consideration when shopping for balance transfer credit cards is the interest rate. There are two components of interest rate that should be considered on balance transfer credit cards. The first rate is the introductory rate. This is a rate, generally much smaller than the long term interest rate, that will be applied to the credit card balance for a limited time period, typically a year or shorter.

Many cards that are designed to function specifically as balance transfer credit cards offer very low introductory rates–some even go so far as to offer a zero percent interest rate for a fixed amount of time. These low introductory rates are great for those who are in the process of actively reducing their credit card balances. By using balance transfer credit cards that charge a zero percent introductory interest rate, it is possible to gain a temporary respite from the cycle of ever increasing interest payments.

Of course, introductory rates are meant to be short term incentives, and after the introductory period has expired, the long term interest rate will be applied. This interest rate is always much higher than the introductory rate. Therefore, those using balance transfer credit cards should strive to pay down their balance as much as possible during the period in which the introductory rate is in effect.

It is important to find out if the balance transfer credit cards that the consumer is considering charge an initial interest fee on the account transfer balance. These charges are always undesirable and the consumer should only consider applying for balance transfer credit cards that apply such a fee if the introductory and long term interest rates are appealing enough to offset the extra initial payment or if a bad credit situation forces the consumer to consider less than optimal offers.

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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.

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The practice of transferring the balance of one credit card with a high interest rate to another credit card with a lower interest rate is a fairly common way to consolidate debt, but very few people know how to make effective balance transfers. The goal of balance transfers is very simple: to save money. If you are not, then you are probably not utilizing balance transfers effectively.

The following factors will determine how and when you should make balance transfers so that you maximize the benefits.

Credit History

If you have a poor credit history, then you have a lower chance of securing a credit card with a low interest rate. Credit card companies base their decisions upon consumers’ credit scores and collection accounts, so it will help if you are familiar with your credit report. That way, you aren’t applying for several credit cards at once, thus planting those applications on your credit report.

Those with high credit scores can usually obtain a credit card with a low APR (annual percentage rate) or even a 0% APR. Many credit card offers include 0% interest on balance transfers for the first six-to-twelve months, which can save you hundreds of dollars immediately.

Credit Card Balance

A high credit card balance will make it more difficult to execute a single balance transfer. Most credit cards have limits on how much debt you can transfer at one time; sometimes the limit is as high as $10,000, while others might be as low as $2,000. Do your homework before applying for credit cards and find out what the balance transfer limit will be. That way you aren’t obtaining a credit card for which you will have no use.

Balance Transfer Fees

Many credit card companies charge fees for balance transfers, which are typically around 3% of the transfer amount. Although most credit cards have caps on the fee amount for a balance transfer, you should always read the terms and conditions to make sure. Compare the fees that credit card companies charge, and choose one that offers a low or no balance transfer fee.

Debt Management

Sometimes, it isn’t the credit card that’s the problem. People who lack the ability to effectively manage debt will not reap the rewards of balance transfers. Even if you take debt from several different places and put it into one account, you are still going to owe the money.

Keep a folder that contains all of the information you have about your credit card debt. Research balance transfers carefully, and when you have chosen the right card, begin to manage your debt. Decide how much of the debt you will pay off each month, and stick to that, no matter what other problems or temptations might crop up in your life. Balance transfers won’t help if you never begin to pay off the debt.

Balance transfers can be valuable tools if you know how to use them effectively. Pay careful attention to your debt and do proper research on the management of that debt. While credit cards can ultimately be your best resource for debt management, they can also cause a wealth of problems if you are not prudent in your solutions.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com

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