0 4 min 4 yrs

Credit card companies have been offering various deals and benefits to attract their consumers one of them is free balance transfer. Consumers who want to avoid high interest rates and want to enjoy rewards and points, transfer their balance on zero percent credit cards.

You can move your balance from a credit card to a new credit card with a 0% balance transfer. Many credit card companies offer introductory balance transfer promotions where no interest is charged on the transferred sum, for 6 to 21 months, help you pay off loan faster and at a lower cost. This offer may vary from card to card.

If used wisely a balance transfer may be a good option for paying off your credit loan with less or no interest hence saving you a lot of money in terms of interest. But you need to study properly the credit card offers and deals very carefully before getting one for you. Many transfer cards require unexpected charges and terms, but choosing the right card will help you to keep your debt under control.

You should know that it is not allowed to pay off your credit with zero percent credit cards of same card companies. There is transfer balance fee charged by credit card. Do the math to see if balance transfer fee is worth the amount you will be saving on interest.

Before applying for a balance transfer card, check your credit score to see either you qualify or not. Some balance transfer cards prefer good and excellent score holders for approval.

Some cards fix time duration for balance transfer process, which is mostly 60 days after your account started working. The intro APR period start right after you opened your account not when you make the transfer. If you miss this opportunity, you will minimize the intro APR period. To get most benefit from the intro period, start using it as soon as possible.

The balance transfer cards have limits of amount in terms of debt and exceeding the limit may charge you penalty. Late payments and bouncing of check can also add to more in interest fees. You must do the calculations first to understand how much you will save and benefit from balance transfer and how you will deal with the charges. Beware of any surprise terms which many credit companies do not discuss and clearly mention them on credit card offers.

Applying for a number of credit cards with low introductory rates can affect your credit score negatively. A balance transfer card may hurt or help build credit score, depending on many factors. Carrying excellent credit score may help you qualify for best balance transfer offers.

Some balance transfer card offers no interest charges your balance is paid in full before the end of intro period. But if your card carries balance after intro period, you will be charged with the interest accrued during the interest period.

Balance transfer is a good tool to manage your debt in a better way, by using it to its full advantage. But after paying off your majority balances you should plan your budget to make drastic changes to avoid the need to take such cards in future.