When you’re applying online for a 0% balance transfer, there are a few areas of the application that you should examine particularly close. Here’s a rundown on what to look for on a balance transfer application.
1.) Duration of the 0% APR balance transfer period: Most credit cards that advertise 0% APR balance transfers for a year give approved customers a 0% APR for 1 year. However, some credit card companies offer consumers a shorter duration on balance transfers if they do not meet certain credit requirements. To be sure you will be offered 0% for 1 year, check the rate information in the terms and conditions of the application.
2.) What the 0% APR applies to: Some credit cards offer a 0% rate on purchases and balance transfers, while others offer a 0% rate on one or the other. If you will be using your credit card for purchases, be sure you are applying for a credit card that offers a 0% interest rate on balance transfers as well as purchases. If the credit card does not offer 0% interest on both, any purchases you make will be charged a higher interest rate and all payments you make will reduce the balance at 0%, not the higher interest rate.
3.) Default Terms: Default, in a nutshell, is an action that voids your 0% interest rate. It is vitally important to pay your 0% balance transfer credit card on time every month. Failure to do so will void your special interest rate and elevate your APR to a standard rate.
4.) Balance Transfer Fees: While a small handful of credit cards offer no fee balance transfers, the majority charge a 3% fee. Of the credit cards that do charge a balance transfer fee, the usual maximum is the greater of 3% or $75. However, some credit cards do not impose a dollar limit on balance transfer fees. In the fees section of the terms and conditions, be sure the application lists a maximum fee. (This applies more to individuals transferring more than $2500, as that is when the $75 balance transfer fee threshold is crossed.)
Overall, 0% APR balance transfers are a great way to save money. Heck, I’ve got a whole website devoted to them. Just be sure to check the fine print before applying and, of course, apply online at Smart Balance Transfers.
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