Balance Transfer Credit Cards
When you come right down to it, 0% credit card offers can provide a wide array of benefits and advantages to the disciplined and vigilant card holder. Under most circumstances it works like this: You sign up for the card, receive a 0% annual percentage rate for an introductory amount of time or in some cases until you pay off the balance entirely at which time it resets back to a normal (high) rate. Consumers have utilized these cards for a umber of purposes. Some wish to transfer over some of their remaining debts onto a card that won't have interest eating away at their monthly payments. Others like to have them as a temporary cash infusion at 0% interest in case of emergencies. Still others actually continually roll a sum of money onto these cards, keeping the actual cash they took out in interest bearing accounts. Whatever purpose you intend for them, it's important to stay on top of your credit and debt usage and while taking advantage of what balance transfer cards have to offer.
The primary purpose of balance transfer credit card offers is the removal of debt. Most commonly utilizing these cards will give you 8-12 months of paying off your debt interest free. Given the recent turmoil in the credit card markets, in some cases the time frame has been toned down to 3-6 months, but if you keep an eye out you may be able to find a better deal. As always, reading through the fine print of each card offer will let you know whether a good deal is available or if your potential benefit will be eaten by fees. Many card companies will hit you with a “balance transfer fee” around 3%, which varies from card to card. Be sure that no other fees other than the balance transfer fee will be charged, or you're at risk of removing any potential gain that could be had from its use. It's also possible to find a card offer with no transfer fee at all, but it's much rarer. Your best bet is to hold off until you find an offer you're comfortable with before pulling the trigger.
Once you have an offer that you're happy with, you'll need to fill out an application. After receiving the card in the mail you'll begin the transfer process by calling to activate your card. You can ask the card company for your options in having the old balance paid off. In some cases you can ask for a check or applied to your old balance in some other way.
In closing, taking advantage of balance transfer credit card offers can provide you with an easy way to pay off debts or even earn interest on 0% offers, but watch out for common traps. Fees can eat up your returns or remove any benefit from doing the transfer at all, so read and re-read the fine print. Also it's important to keep in mind that using too many balance transfers can have a negative impact on your credit score, so keep an eye on that as well. Good luck!
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