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Credit Card Applications » Questions » User Questions » Balance Transfers » What are the factors that can influence the decision of 0 percent balance transfers?

What are the factors that can influence the decision of 0 percent balance transfers?

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Applying for a balance transfer may be the best solution for you if you are buried under debts you are finding tough to repay. The banks are also more than eager to offer great deals to people who are willing to apply for balance transfers, since it means an inflow of new customers from whom they can make more money. Hence, it is not uncommon to see banks advertising 0 percent offer on balance transfers for anyone who intends to opt for it. While the concept of 0 percent interest may seem to be very appealing, there are various other factors that have an impact as well. Overlooking these critical factors may lead you to regret your decision in the long run. Let us take a look at the other factors that can influence the transfer.

The first factor that you need to look into is the annual fee on the card. Though some banks offer zero percent interest for balance transfers, they make up for the loss of interest by charging very high annual fees. It is imperative that you don`t opt for these cards. There are a few banks that offer interest free balance transfers on cards that have no annual fees. Though it may take some time to get the list of such banks, it is worth the time and effort since it is sure to save you a significant amount of money.

The next factor that can have an impact on you is the interest rate that the bank charges for the purchases made using the card and also the consecutive balance transfers. Some banks increase the interest rates in order to compensate for the loss of interest on the first balance transfer. Moreover, there are also banks that do not opt for this strategy to make up for the loss. Look out for the banks that fall in the latter category.

The overhead charges and the fees on the card are the other factors that can have an influence on the outstanding debts on the credit card. Hence, when you choose a card that offers 0 percent balance transfers find out the processing fees on the card. If they are way too high, then it is recommended that you seek other options. Find out about late payment fees and other financial charges associated with the card well before you apply for interest free balance transfers.

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Intro APR on Balance Transfer: 0% (21 months)*
For Excellent/Good Credit
Intro APR on Balance Transfer: 0% (12 months (on balance transfers made within 45 days of account opening))
For Excellent/Good Credit
Intro APR on Balance Transfer: 0% (18 months)*
For Excellent/Good Credit
* Click apply to read the full Terms and Conditions.

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