If you are considering applying for a 0 balance transfer no fee credit card, there are a number of factors to bear in mind. While the mention of a 0% interest rate might be enticing, the low rate offered should not be your only consideration. There are a number of factors that can influence whether transferring your entire credit card balance to a new card is actually a good idea or not. By paying attention to additional factors, you can make an informed decision regarding your credit card status.
How Long is the 0% Offer Valid?
This is one of the key factors to bear in mind. Just because a credit card company is offering a 0% interest rate on balance transfers, accepting that rate might not be in your best interest if that rate is only good for three months. You need to read all of the fine print on any credit card offer to ensure that the low rate does not expire in a very short period of time. If you will only be free of interest charges for three to six months, switching your existing credit card balance to a new card might not be advisable. If your interest rate is going to be significantly higher once your 0% rate expires, you might be better off sticking with your current credit card company.
Will a Transfer Fee Be Applied to Your Balance Transfer?
This is another extremely important question to answer. For those lacking experience with balance transfer credit cards, the concept of having to pay a fee to transfer debt from one card to another could be a foreign concept. While not all charge card companies impose a balance transfer fee, some companies do impose this fee and call it a variety of different names. One company might label this fee as a balance transfer fee while another might chalk it up to an administration fee. Just because you think you are signing up for a no fee for balance transfers credit card, if that fee is simply labelled as something else, you might still be incurring an unexpected charge. Prior to accepting a new credit card, make sure you that all promises are in writing so that you are not met with unexpected financial surprises.
What is Your APR Going to Be After Your 0% Grace Period?
Before you agree to accept a new credit card promising you no balance transfer fee and an introductory interest rate of 0%, determine exactly what your interest rate will be once your grace period has ended. Some credit card companies will offer rates as low as 12.9%. Others can have interest rates as high as 24.9%. Having such a wide disparity in interest rate offers can make deciding upon a 0% interest rate card a difficult decision indeed. While you might initially be enticed by not having to pay any interest on your current credit card debt, your enchantment with your new card might start to wane when you suddenly have to start paying a significantly higher rate. If you understand what your eventual interest rate will be before you sign up for a new card, you can make an informed decision that suits your needs now and into the future.
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