Should You Make a Balance Transfer on the 0 Interest Credit Card?

There are plenty of 0 interest credit cards on offer these days. And it makes perfect sense to transfer your balances from other credit card accounts to the 0 interest accounts. But it’s not always as simple as that. There are several considerations to be made before you make your balance transfer. Here’s a list of questions to help you make an informed decision.

Does the 0 interest offer apply for balance transfers?

Many 0 interest credit cards offer the 0 interest rate to purchases, but the same does not necessarily apply to balance transfers. Some 0 interest credit cards do not cater for balance transfers and even if they do, the introductory period for purchases and balance transfers can be different.

How long does the 0 interest rate last?

0 interest credit cards are a great way to save money on minimum repayment. But how long does it lasts? Some offers last only 3 months while others can be as long as 16 months. The length of offer on purchases and balance transfer may also be different. It’s important to keep track of the dates because you should try your best to reduce as much debt as possible before interest begins to be charged on it.

Are there balance transfer fees and what is the cap?

The next thing to know is the fees involved in making the transfer over to your 0 interest credit card. Most credit cards have a fee based on the amount of total balance transferred and have a minimum charge. You should also find out if there is a cap on the fees, and there isn’t any, you should do your maths carefully before transferring all your balances out.

What is the APR after the introductory period?

The 0 interest offer will end eventually and you will be charged with the standard APRs for the card. So what is this APR after the introductory offer? Is it more or less than the credit card which you transferred the balances from? You don’t want to save on the introductory period only to pay for more later after the introductory period.

What is the terms and conditions?

Like any credit card, these 0 interest credit cards come with terms and conditions. These are similar to other credit cards, but every credit card will have slightly difference terms pertaining to their unique offers. You should know what you can or cannot do with the card or you might risk getting your 0 interest offer revoked. You could even end up having a default rate charged on you for your mistake.

Once you are clear of what you’re getting into, you should do your maths carefully and go ahead with your transfers only when you are confident that it will be beneficial to you.