For many people, the holidays can result in a lot of debt. Reports estimate that the average
American spent $805 on gifts. To many people, the new year brings extra motivation to tackle
debt. In the bid to do this, many consumers reach out for 0% balance transfer credits. When
transferring balances, pay attention to these tips:
1. Type of Debt: Not all credit cards allow consumers to transfer noncredit
card debts (i.e.
student loans, car loans, etc).
2. Length of 0% Offer: Citibank has the longest 0% balance transfer, an it last 21 months. After
that, the remaining date returns to Citibank’s Annual Percentage Rate.
3. Balance Transfer Fee: Most balance transfer cards charge a transfer fee. The most common fee
is 3%, or a percentage of the amount you transfer. So $30 fee for every $1,000 transferred. The
one exception is the Chase Slate card.
4. 0% on Purchases: Balance transfers are not the same as 0% Annual Percentage Rate. But,
many cards offer both to consumers. 0% purchases means the card issuer waives interest charges
on balances from purchases for a limited time. Double check the 0% offer also applies to balance
5. Credit rating: The best 0% offers require consumers to have excellent credit of at least 700 or
6. Annual Percentage Rates: Balance transfer offers will eventually expire, and when this
happens, the remaining balance will be subject to annual percentage rates. It is important to think
long term about how these rates will affect your debt and if you can handle it
7. Think past the 0%: Think of additional benefits that could complement your card. Chase
Freedom card offers a $150 bonus if you spend $500 on the card in the first three months.
No interest credit cards can be a good way to get out of debt. But make sure to avoid any new
debt and paying off the card before the 0% introductory rate expires.