Why should I use a 0% balance transfer scheme? - Balance Transfers Questions


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Why should I use a 0% balance transfer scheme?

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The balance transfer is one of the most customer friendly offers devised by credit card companies. A credit card balance transfer refers to the transfer of credit balance from one credit card Company to another. Often, credit card companies levy an introductory or entry charge for those customers who wish to join a new credit card company. A zero percent balance transfer, hence, refers to a balance transfer that does not include an introductory fee. In order to maximize the zero percent balance transfer, you must understand the extent and utility of the offer.

Let us begin with why people opt for the balance transfer: A balance transfer is seen as a way to reduce the high amounts of accumulated interest on credit card expenditure. A transfer of credit balance is usually from a one company to another credit card company that is offering better interest rates. The transfer refers only to the credit balance. The customer will be obligated to follow all the rulings of the new credit card company. People also utilize the balance transfers to maximize benefits and maintain their credit scores.

Not all companies offer the zero percent balance transfer. Credit card companies that offer this scheme may make up for it with slightly higher interest rates. It is considered useful to accurately analyze one`s reason for making the balance transfer. If it is to reduce interest related debt in the credit card company, then the best option would be to find a credit card company that offers the lowest interest rate for credit expenditure. Furthermore, almost all credit card companies offer a grace periodЎЇ.

A grace period is a short period of time during which the interest rates are even lower than the usual interest rates levied by that particular credit card company. What many thrifty credit companies do is they transfer their credit balance and pay the interest rates offered during the grace period and then transfer their balance again to another credit card company to enjoy yet another grace period. These constant shifts are fast gaining popularity.

While one may not be able to transfer balances between more than 5 or 6 companies, one will save a considerable amount making the transfers during the grace period. A zero percent balance transfer is the best form of a grace period. Some people also choose to transfer their remaining credit balances to savings accounts that offer high interest rates and even manage to make some money by doing so.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Intro APR on Balance Transfer: 0% (18 months)

Ongoing APR on Balance Transfer: See terms

Excellent, Good Credit

Intro APR on Balance Transfer: 0%* (21 months on Balance Transfers*)

Ongoing APR on Balance Transfer: 14.49% - 24.49%* (Variable)

Excellent, Good Credit

Intro APR on Balance Transfer: 0%* (18 months on Balance Transfers*)

Ongoing APR on Balance Transfer: 14.99% - 24.99%* (Variable)

Excellent, Good Credit

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