Maximizing the Offer of 0 Balance Transfer Credit Card

By Leni Parrish on August 4, 2009

Are you trying to get away from the burden of high interest rate of your credit card? Then you can do this and more with balance transfer. You can save some considerable amount with 0 balance transfer credit card offers that are available anywhere today.

The idea of a 0 balance transfer credit card is that you transfer balances from current card to the new card with the offer. Instead of paying off the interest rate plus principal of the old card, the new card issuer will pay off the balances and transfer these to your new card. Having zero interest, you will save from high interest rate when you pay them off at the specified time. Be sure to comply and pay off every balance of the new card. Otherwise, the zero balance will not apply and you end up paying the current issuer’s interest rate.

It is important that before you accept or apply the offer for balance transfer with zero interest, you must be able to pay off the whole balance within the specific period. This is your only way to truly enjoy the offer. It is very importan

The Drawback

So, it seems that a zero balance transfer is advantageous if you understand how to handle it. Nevertheless, even if you think you can deal with this, try not to decide immediately. Think if you can take the drawbacks:

  • Be aware that despite the good offers, there could be a required fee and charge with the new credit card. Know the hidden costs and see which among the providers offer the least fees.
  • Hopping from one card to another will show on your credit record. The impact could be negative as credit utilization comprises a primary point on the credit score.
  • Applying for the balance transfer requires a process that includes approval from the new issuer. It is possible that not all of your transfers will be approved; leaving you with two debts instead.

The idea of good management is always perfect for credit cards. The key is to always pay off balances. The zero transfer is just another offer that you can enjoy if you know how to use credit cards responsibly. It is a way to minimize payment but never as an escape to pay what is due.

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