Why should one choose a combination of 0% balance... - Balance Transfers Questions


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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 on | Updated on December 5th, 2010
The content is accurate at the time of publication and is subject to change.

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.

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% 15 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.49% - 25.49% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

Intro APR on Balance Transfer: 0% Intro APR for 12 months

Ongoing APR on Balance Transfer: Variable APR of 15.24%, 19.24% or 25.24%

Balance Transfer Fee: Either $10 or 4%, whichever is greater, will apply on each balance transfer and credit card check

Good, Excellent Credit
See Rates & Fees

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

Ongoing APR on Balance Transfer: 15.99% - 25.99% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

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