What You Must Know About 0 Balance Transfers
0 balance transfer cards can be the ideal solution for people who have credit card debt. While these offers certainly have their benefits, you should assess the facts before you decide to get one. If you do not understand the important facts, things can get complicated.
Read the Fine Print and Compare Offers
This is the most time consuming aspect but the most important. Card companies are always coming up with new offers to entice people to get cards. These usually do not have annual fees, but check the terms and conditions to be sure. Also remember that 0% APR intro offers are not given by all cards.
Understand the Balance Deal Limitations
Unlike in the past, the 0% is now available for fixed terms only (i.e., a year). During the time credit flowed easily, low interest rates were offered after the 0% offer.
This usually is not the case anymore. However, there are still some good deals out there. You simply have to analyze the offers and compare the rates set after the promo period elapses.
Balance Transfer Fees
Not only will rates be adjusted after the 0% period is finished, but there may also be balance transfer fees. The rate is around 3%. Here you need to make a decision: if you pay the balance within the 0% time frame, then you should get a transfer card. Again, you need to read the conditions so you know the exact time period allotted for the 0 balance transfer.
Sometimes the card company offers can be difficult to understand. If there is something you cannot comprehend, make inquiries. The terms should state the penalties for unfulfilled payments. If it is not, ask. You should also figure out how your card payment will be set against your current debt.
For Loan Applicants
If you are getting a big loan, you need to carefully assess the pros and cons that much more. Making a transfer can have a negative effect on your credit standing. Unless it is really necessary, it is probably best if your present card standing remains unchanged to a year of the loan.
Use the Card Prudently
The urge to use the new card will always be there, but resist it. A lot of potential problems can be prevented by using different cards for buying and balance transferring.
Closing the Deal with the Old Card
Some people like to close their old card when they get the new one. The fewer cards you hold, the easier it will be to track your finances. If you do close it, make sure you follow the exact procedures. Mishandling your old credit cards can have a negative effect on your score.
Also remember that certain amounts have to be paid if you have a balance. Check with the company for the exact amount; do not presumptions.
Getting a 0 balance transfer card can be a great way to deal with debt. As long as you are aware of how these programs work, you will be able to use these to lessen your financial burden.