How 0 Balance Transfer Credit Cards Work

There are a number of creditors that offer 0 balance transfer credit cards as an introductory rate for new card applicants. Some cards also have fixed low-percent APR when you transfer your balance to another card. This lets you take advantage of paying low fees for transferring your balances to pay off credit card debts.

Some VISA credit card offers provide 0% intro APR balance transfers with APR percentage of as low as 11.99%8 (V). If you use your zero balance transfer card to pay off your other card bills can lower your balance as long as you pay them off steadily during the introductory period. It is an ingenious trick to repay your remaining balances without additional interest or fees.

Most credit companies offer 0 balance transfer credit cards to attract new clients to switch services. This lets you consolidate all your card debts into one card making you pay just one bill at affordable rates without interest for as long as the promo period lasts. After the introductory promo rate of 0% expires, creditors are able to make more money by hiking the APR and late fee penalties.

Anyone can apply for these types of cards. There are similar offers from MasterCard and at least a couple of VISA credit card offers. There are some websites that offer several different types of cards from various creditors in one site. You can make comparisons online and make a more informed decision when all the cards are laid out for you in one page.

Some websites offer online applications and approvals so you wont have to visit several banks or creditors to get your card. If your credit score is good, you may even get instant approval and get your card in the mail in about a month. Once you get your balance transfer card, you should learn how to use it properly.

The actual balance transfers may take days or a couple of weeks to process between cards. During this waiting period, your balance interest still mounts up. You still have to pay normal interest rates till your balance is officially transferred to your zero balance cards. Be sure to always check the higher APR rate that is applicable to the remaining balance. Pay this fee immediately before cut-off time.

If your credit history is very good, dont be surprised to receive VISA credit card offers for 0 balance transfer credit cards in your mail every so often. Depending on your credit score, you may receive zero percent or low-interest rate offers. Your monthly income and debt ratio may also dictate the kind of card you will be offered.

Some creditors will only honour a limited amount of balance to your zero balance transfer card. This decision by your creditors is also based on your credit history and other factors such as your ability to repay debts. If your balance exceeds the limit, your remaining balance in your holding account will still accumulate normal interest rates that you will have to pay.