Transferring credit card balances with a high interest rate to another provider offering 0 balance transfer plans can be very beneficial. Cardholders will save money by merely paying the principal amount of the new card’s balance. The new card then pays the remaining balances of the old card. As an added bonus, the cardholder will not be obliged to pay the interest rates for the balances. This is better than accumulating high interest every month on an old card.
Maximizing the Benefits of the Offer

To get the most out of a zero balance transfer, clients need to settle their balances before the offer expires. Offers like this usually last only for a specific period. It could be just a few months to one year at most. Cardholders looking for the best offer should see to it that the period of the offer is within the time that they can pay off all the balances.
Before even considering a zero offer, it is equally important to see the interest rate after the offer expires. It might be that the current interest rate is lower than the new provider’s standard rate once the rate is reverted back. If it is not possible to pay off all the balances within the promo period, cardholders might end up paying higher than their previous card because of higher interest rate.

Penalties for Late Payment

If possible, clients should avoid delayed payments on zero balance transfer. Otherwise, the offer may not give full benefits since the provider may charge a higher interest rate for the unpaid balances. Worse, there may be hidden charges and fees that will go with the unpaid balances. It is always important to read details about the offer.

Getting a High Credit Limit

A good credit record is the key to getting high credit limits. The higher the credit limit, the higher the chances that balances will be accommodated. Plus, there might even be something left for new purchases. Cardholders should bear in mind that providers may require interest rates on new purchases. There are, however providers that still extend zero interest on new purchases as well. When shopping around, it is advisable to look at this feature.

Cardholders should only accept a zero balance transfer offer if they can truly maximize its benefits. Otherwise, the risks involved may be greater for them to handle if they cannot play by the rules.

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