 How to Avoid a 0% APR Balance Transfer Mistake
A 0% APR balance transfer provides a great opportunity to save money on interest. However, there are three pitfalls one must avoid to insure a 0% balance transfer doesn't become a balance transfer mistake.
- Continue to make payments on your old credit cards until your new credit card has completed the balance transfer: It can take anywhere from a few days to a few weeks for a balance transfer to clear with your old credit card company. Until it has, don't neglect bills from your old credit card.
- Pay your new balance transfer bill on time: Obviously it is important to pay one's credit card bills on time. However, with a 0% introductory rate it is even more so. Why? Because the fine print states that a late payment can void the 0% APR balance transfer offer. In other words, if you miss a payment, you lose your special balance transfer rate.
- Don't run up a bill on your old credit card and waste money paying interest on new purchases: Getting a credit card that offers a 0% APR on balance transfers and purchases is a good way to avoid this pitfall.
If you avoid these three pitfalls, you are prepared to maximize the savings a 0% balance transfer credit card provides.
Recent Smart Balance Transfer Bloggings
The Worst Credit Card of 2009: The worst credit card company of 2009 doesn't offer 0% balance transfers and, surprisingly, isn't issued by Citibank. This "bad credit" credit card charges over $250 in fees and preys on customers with bad credit who can't qualify for a 29.99% APR. Citibank Continues Interest Rate Increases: Citibank continues to raise interest rates and draw the ire of customers whose low apr credit cards have become high interest jokes. 0% balance transfers are one option customers can pursue. Opting out and getting a new credit card is often the best approach. 0% Balance Transfer Offers Today: Finding a good 0% balance transfer offer is not as easy as it was a year ago. Most balance transfer credit cards only offer 0% rates for 6 months, though the best balance transfer credit cards still provide 0% interest rates for 12 months. Credit Card Defaults Fall: Credit card defaults fell slightly last month, but elevated default levels will decrease the availablitly of low rate balance transfer and 0% APR credit card deals, as well as lead to increases in balance transfer fees and annual fees. Bank of America Credit Card Annual Fees: Credit card companies have been increasing balance transfer fees, cash advance fees and interest rates all year long. Recently, Bank of America announced they would be raising annual fees on some credit cards. So far, we haven't heard from impacted consumers, but annual fees may become very common.
*Important Disclaimer: See credit card applications for complete terms and conditions. While Smart Balance Transfers makes reasonable efforts to maintain accurate information, all credit card information is presented without warranty. When you click an "Apply" button, you can review the credit card terms and conditions on the issuing company's website.
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