A 0% Balance Transfer Credit Cards offers an introductory period with zero percent interest on balance transfers from other credit cards, meaning you can move your balance to it without incurring interest for anywhere from 12-21 months after making the transfer.
What is a 0% balance transfer credit card?
A 0% balance transfer credit card is a type of credit card that offers an introductory period with zero percent interest on balance transfers from other credit cards. This means that you can move your balance to the new card without incurring interest for a certain period of time, typically 12-21 months.
How do 0% balance transfer credit cards work?
When you apply for a 0% transfer balance credit cards, you will be given a credit limit. You can then transfer up to the full amount of your credit limit from another credit card to the new card. The balance transfer will be processed as a cash advance, which means that you will not be charged any interest on the transferred balance for the introductory period.
What are the benefits of using a 0% balance transfer credit card?
There are several benefits to using a 0% balance transfer credit card. First, you can save money on interest. If you have high-interest credit card debt, transferring it to a 0% balance transfer card can save you hundreds or even thousands of dollars in interest charges.
Second, a 0% Balance Transfer Credit Cards credit cards can give you some breathing room when it comes to paying off debt. If your monthly payments on your current credit cards are difficult to manage, having a longer period of time to pay off your debt can make it easier to budget and stay on track.
Third, using a 0% balance transfer card can help improve your credit score. By making timely and full payments on your new card, you can build your credit history and improve your credit score.
What are the drawbacks of using a 0% balance transfer credit card?
There are also some drawbacks to using a 0% transfer balance credit cards. First, there is typically a balance transfer fee, which is a percentage of the amount you transfer. This fee can range from 2-5%, so it’s important to factor this into your decision.
Second, you need to make sure that you pay off the balance before the end of the introductory period. If you don’t, you’ll start accruing interest at the regular rate, which could be very high.
Third, you need to use your 0% balance transfer card responsibly. If you use it to make new purchases, you could end up adding even more debt to your balance.
How to use a 0 transfer balance credit cards wisely
Here are some tips for using a 0% balance transfer credit card wisely:
- Do your research. Compare different cards to find one that offers the longest introductory period and the lowest balance transfer fee.
- Make a plan. Decide how much you want to transfer and how long you think it will take you to pay off the balance.
- Make timely payments. Pay your bill in full each month to avoid interest charges.
- Don’t use the card for new purchases. Use the card only to transfer your existing debt.
Best 0% balance transfer credit cards
If you’re considering using a 0% transfer balance credit cards, here are some of the best cards on the market:
- Wells Fargo Reflect® Card
- Citi® Diamond Preferred® Card
- Citi Simplicity® Card
- Chase Freedom Unlimited®
- Chase Freedom Flex℠
These cards offer long introductory periods with no balance transfer fees, making them a good option for those who are looking to save money on interest and pay off debt.
Before you apply
Before you apply for a 0% balance transfer credit card, be sure to read the terms and conditions carefully. This will help you understand the fees and interest rates associated with the card, as well as any other potential restrictions.
Conclusion
0% transfer balance credit cards can be a helpful tool for managing debt. However, it’s important to weigh the potential advantages and drawbacks before applying for one. By following the tips in this article, you can use a 0% balance transfer card to your advantage and save money on interest.