Save money with a zero percent balance transfer by reviewing fees first
A zero percent balance transfer can be a great way to save money, but only if you do your research before moving you balance. Many people hastily move balances around from credit card to credit card under the simple belief that zero percent balances have to be the best cards, but failure to read the terms and conditions of these cards can end up getting you in more trouble then you started with. The following few paragraphs will discuss how to look at all associated fees and conditions carefully so that when you move your balance it will be the right decision.
The very first thing you need to look at when you start to look at zero percent balance transfer cards is how long your balance will actually stay at zero percent. Ideally you want a card that offers you six to 12 months of zero free balances so that you have time pay off the balance. Some cards only offer three months and then the APR jumps up to a ridiculous rate that can be as high as twice as much as you are paying right now. Obviously, this is not going to be the best deal for you because you will likely end up owning more in interest then you got away with paying for the three months.
This brings up the next point; which is the APR of any zero balance transfer credit card once the grace period of zero percent interest has ended. Even if you get a card that offers you 12 months an ending APR that is 24% or more is going to end up killing your finances if you cannot afford to pay off your entire balance in this timeframe. Therefore, you need to pay close attention to the APR and consider what you can reasonably afford to pay off on the card. The amount of the balance is a large factor, because small balances are not going to add up quickly, but a large balance will catch up with you sooner than you think.
Finally, you need to look at what fees are associated with a missed payment on the zero percent transfer card. Some credit card companies will immediately jump to a high APR of 25% or more with just one missed payment, and the days of zero interest will be gone. Thus, it is very important to make sure that you know what late fees and penalties are assessed in this situation and make sure that you are capable of never incurring them. By checking out the penalties, eventual APR, transfer fees, and other fees well in advance of your transfer you can make sure that you are really saving money when you move money onto a zero percent balance transfer card