Credit Card Question & Answer
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Questions » User Questions » Balance Transfers » Why should one choose a combination of 0% balance transfer and an interest free APR period?

Why should one choose a combination of 0% balance transfer and an interest free APR period?

Answered by , at
Add to Favorites:

Balance transfers are becoming an increasingly common option, with more and more people opting for it every day. While some individuals might take the balance transfer route one in a while, there are those that do it quite frequently. This could be disastrous in the long run. Each time balance transfers are completed the credit rating of the individual goes down. It is also not a wise idea to keep applying for new cards when the application is rejected once or twice, as this will also bring down the credit rating even further.

With 0% balance transfers, one can save quite a lot of money and should look for credit cards with a longer 0% balance transfer period. For those who have very high balances on their cards there could be a saving of hundreds and thousands of precious dollars.

Credit card companies try new and innovative ways to entice customers and offer sweeteners every now and then. Offers seem to be improving each day as credit card companies are not only offering a 0% balance transfer but also combining it with an interest-free APR period, especially on new purchases. The 0% introductory annual percentage rate or the intro APR is another addition to the existing freebies. These deals are also known as the free-free balance transfer offers.

The whole process revolves around the interest rates. For example, if one has to pay $100 each month on a credit card which charges heavy interest, most of the $100 would be used to pay the interest that has been accrued on the balance. On the other hand, if one had to transfer the same balance onto another new credit card which has a 0% introductory annual percentage (intro APR) on balance transfers, then the same amount of a $100 which is the monthly payment would be used towards paying the principal balance primarily and this would in turn enable the customer to pay off the balance within a shorter timeframe and in turn amount to huge savings.

One must check thoroughly before zeroing in on a new credit card to do the balance transfers. With so many companies vying for business and with so much competition, one can get a very good deal by just checking different cards online. It is wise to let the credit card companies compete for business and offer the best deals possible.

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
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.

Other Questions in
Balance Transfers