If you ever found yourself with a high credit card balance and a interest rate that is outrageous to go along with it, you are not the only one with this problem. Almost all households today have credit card debt totaling well over $10,000. While 0% interest balance transfer credit cards are not as plentiful as in the past, they are still out there. If you can get approved for a balance transfer to a low or 0% interest card, it may be something you want to look into.
To determine whether or not a 0% interest rate credit card is the best for you there are a few things to consider. First, understand that in most cases you will need to have a good to excellent credit rating to qualify. If you do not have great credit, this option most likely will not be for you. Also realize that most offers out there are for shorter terms than in the past ranging from approximately 6 -12 months. Balance transfer fees are also on the rise and unlike in the past do not have a cap. You can expect to pay transfer fees of about 3-5% of the total amount you are going to transfer.
To decide if a 0% interest balance card is a good option for you simply look over the pros and cons. Determine the amount you would like to transfer and then take a hard look at your finances. If you are positive that you will be able to pay off the balance during the promotional time period, then you should take the next step. Organize all of your current credit card bills and get ready to determine which 0% interest credit card is right for you.
It will now be very important for you to do some home work. You will want to carefully compare offers between several different credit card companies. Be sure to read the fine print to determine fees, percentage rates and other things that could potentially cost you money. There can be a wide range of fees and you will want to compare figures to determine where you will get the best deal. Also understand that once the promotional time period is up, if you have not paid off the balance in it’s entirety, your interest rate will rise considerably usually to somewher between 11.99-18.99%. It is advisable to look at what the rate will go up to after the promotional period and compare that as well. You will need to weed out any cards that seem higher than the average. Other benefits your new card should offer are no annual or application fees.
While you are waiting for approval and the transfer to go through be sure to continue making monthly payments on your other charge cards. Once you have your new card in hand and have transferred the balance, be warned. You will want to make sure that you never miss a payment. You will need to make your monthly payment, at least the minimum, on time every month. If you miss even one payment you can be hit with a no payment fee and because you have breached the credit card agreement the credit card company can choose to raise your interest rate.
Another thing to note is that it is not advisable to use your new credit card to make purchases. Usually the 0% interest rate only applies to the transfer, not to new purchases. Keep your new purchases separate on another card and make sure anything new you charge you can pay off. The last thing you will want to do is start building up new debt as you pay off the old.
If you are interested in finding a low interest balance transfer credit card go to www.JemCreditCards.com. They have the best credit cards in the business!
Copyright © 2008 Credit Cards: from Choosing Best Credit Card to Application
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