Tips On Using 0 Balance Transfer Credit Cards
Using 0 balance transfer credit cards to save on paying your debts is always one of the most popular methods of saving cash on balance transfer. If you are thinking of doing the same things, this article can help you transfer balances from higher rate cards to 0 balance transfer credit cards. Below are some tips on using 0 balance transfer credit cards in managing debts:
1. Beware of post-introductory period payments.
You might be tempted to transfer debts to your 0 balance transfer credit cards because of the low interest rates. Inquire if there are imposed minimum amounts for transfer after the introductory period. Chances are, the provider of your 0 balance transfer credit cards is counting on you not being able to clear your debt before the introductory period is up. This way, it can charge you with the higher regular rate.
2. Clarify if the introductory period covers new purchases.
Never assume that the introductory period for your 0 balance transfer credit cards will cover new purchases apart from those that were transferred from your credit cards with higher rates. The best thing to do is to talk to the provider of your balance transfer credit cards and inquire about this. If your new 0 balance transfer credit cards do not cover new purchases, keep them out of sight and don't use them for additional purchases. If this is the case, new purchases are charged in a much higher rate that is more difficult to clear and manage.
3. Consider how long you can pay off the balance.
Most 0 balance transfer credit cards have high annual fees. If you plan on taking your own sweet time in clearing of the debt you transferred to your 0 balance transfer credit cards, it might be better to just stick with your original credit cards. Sure, if you can clear your debt in a year, then paying an annual fee is not going to be too hard but if you think that you will need more than a year to clear your debts, reconsider transferring debts to 0 balance transfer credit cards with high annual fees. 4. Get familiar with penalties.
Even 0 balance transfer credit cards impose penalties on late payments. Most often than not, these penalty charges are even higher than those for regular credit cards. A popular penalty is the removal of the 0 balance clause in your credit card contract. If you miss your payments for a number of times, you might find yourself paying a higher penalty charge with than if you pay them on regular credit cards. Your 0 balance transfer credit cards may just end up as regular credit cards albeit with a higher interest rate and penalty charge.
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