One way to make the most out of your credit card is to take advantage of its zero interest rate offer. Usually the 0% APR applies to balance transfers which means you can pay off the balances you’ve transferred without the interest rate for the entire introductory period. The introductory period may last from 6 months to 12 months, so you can imagine how much you can save by not paying any interest.
How Balance Transfer Cards Can Help
Balance transfers are great if you have outstanding balances from other credit cards with high interest rates. By transferring over your outstanding balances to a 0% APR card, you can work on paying off only the original amount of your debts.
However, transferring balances must be done with great care. First of all, you want to make sure that you have chosen the right balance transfer card. See to it that it does not impose unreasonable costs or an unfair interest rate for new purchases. Make sure that the regular APR will still be reasonable when the introductory period ends.
It is very important for you to pay off all the balances you transferred within the zero-interest period. Also, be sure to submit your payments on time to avoid being penalized with late fees which can be higher than what regular credit cards impose.
Terms and Conditions
After shopping around, spend extra time analyzing the Terms & Conditions of your chosen balance transfer card. Some credit cards may require at least 2 to 4 weeks of processing the balance transfers so you want to make sure that you are still submitting payments to your old card to avoid late penalty fees.
Once your balance transfer has been completed, you should receive a notice from your balance transfer credit card issuer. You can also call the issuer to follow up the status of your balance transfer. Request for an update billing statement from your old credit cards to make sure that you don’t have any outstanding balance left in that account.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!