Where to Find 0 Interest Balance Transfer Credit Cards
In an economy where interest rates are on the rise and credit cards are difficult to obtain and maintain, you can still find a gem here and there. Banks desperately need to retain their client base because few new customers are available to support their banking system. In many cases, this leads to special offers for valuable, loyal customers, such as a 0 interest balance transfer credit card. Often, you’ll find that the offer of a balance transfer at a 0% interest rate is a temporary one, coming from one of your existing cards. The point is to get you to transfer balances from cards maintained by other banks and then, when the 0 interest runs out, you’ll be paying interest on your balance to this bank. However, in the current state of desperation, many banks are offering zero percent for life on balance transfers. What does this mean for the bottom line? First, you’ll want to take into account the transaction fee for a balance transfer, even to a 0 interest balance transfer credit card. These are usually 3-5% of the amount transferred, varying from one card to another. However, if your interest rate on the balance to be transferred is more than that, it is worthwhile to make the transfer. At the same time, if it is an existing card making such an offer, you may want to consider paying off the existing balance first, since payments are applied the balance at 0 interest first, then to the balance upon which you are paying interest. Of course, balance transfers are an excellent way to consolidate credit cards and minimize your debt. You will no longer be compounding interest on a great deal of your outstanding debt,meaning that you save money in the end. Also, it’s easier to keep up with a single payment as opposed to keeping track of several. If you have the opportunity and enough of a credit line, it is a wise investment to take advantage of a 0 interest balance transfer credit card.
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