0 Balance Transfer Fee Credit Cards0 balance credit cards can provide a valuable solution for anyone attempting to pay off a credit card with a high-interest rate. These types of credit cards can help you pay your debt faster, allow you to save money on your interest, increase your current credit, consolidate your monthly payments, and improve your overall credit score.
Zero balance credit cards can come in handy, especially to those trying to manage debts. This can be attributed to the fact that these cards function by transferring any existing balance to a card that has a lower interest rate. Additionally, with a zero balance transfer card, you can pay off any outstanding credit card debt by seamlessly moving the present balance from one card to another.
About Transfer Fees:With 0 balance transfer fee cards, what you should bear in mind is the fact that when you execute a transfer, you will be subjected to transaction fees, which may range between 3%-5% depending on the credit card issuer, and the money transferred. However, this should not discourage you because if you happen to use a high-interest rate card, you will end up spending more and get charged higher rates.
Offers provided by zero balance cards are temporary, and usually, last between 6-21 months. Therefore, you should not be entirely comfortable when you have a low APR since it will revert to higher APR once the offer is over. Apart from this, when performing a balance transfer, it is highly advisable to complete the payment within the offer period. The notion behind this argument can be based on the fact that if you fail to pay off the balance within the given time, the interest will accrue again, throwing you into more debts.
Different Options From Different Banks:Different banks provide different zero balance transfer cards, and the one you choose solely lies on your preferences or urgency. Some of the top banks that offer these types of cards are such as Citibank, Capital One, HSBC, and Chase Bank.
The 0 balance transfer card from Citi Bank, for instance, gives you the opportunity to earn at least 2% on each purchase you make, while at the same time, giving you 1% cashback when you buy. However, for you to be eligible for cashback, you must first pay the minimum on due time. The balance transfer offer stands at 0% intro APR on balance transfers for 18 months. After the 18 months have elapsed, you will be required to pay an APR of between 15.9%-25.99%. The Capital One zero balance, on the other hand, has a 0% introduction APR on any balance transfers done for 15 months, with a 16.24% -26.24% variables after the 15 months have elapsed. No annual or foreign transfer fees are charged on the card.
If you have decided to pursue a zero balance transfer credit offer, always make sure that you are fully aware of the terms and conditions offered by the bank. For instance, it is important to know when the 0% APR will expire, the minimum monthly payment, the balance transfer fee, and what will be the regular APR fees once the intro rates have expired. As a point of advice, always try your best to pay off the balance before the 0% intro APR has expired.