Guide To The Best Balance Transfer Credit Cards

Balance transfer credit cards make an excellent choice for consumers looking to transfer a balance from a higher interest rate credit card to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The APR is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don’t use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant’s credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.

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Credit card issuers keep on adding new features to credit cards to woo potential customers. A credit card balance transfer is
one among them. You can transfer your outstanding card balance (or balances) from your higher interest credit cards onto a
balance transfer credit card with a lower introductory interest rate. American Express was the first credit card issuer to
adopted this strategy and other card issuers quickly followed suit.

To understand the balance transfer process, you need to understand the various terms associated with balance transfers such
as APR, annual fee, introductory rate and balance transfer fees.

The annual percentage rate (APR) is the interest rate that a credit card user has to pay for carrying over a balance,
transferring a balance from another card, or taking out a cash advance. Depending upon the specific card offer, some credit
card companies will also charge an annual fee just for card membership. Unless the card has a significant rewards offer, you
should avoid balance transfer cards that require an annual fee.

An introductory rate is a special annual percentage rate (APR) for a limited time. If you have a good credit history, you may
get the benefit of low introductory rate for a longer period than cardholders with poor or suspect credit histories.

Transferring your Credit Balance

As long as you pay credit card balance in full each month, you should not have to bother with balance transfers.
Unfortunately, credit card debt can build quickly if balances are not paid in pull, but if used correctly a credit card
balance transfer can buy you time so that you may pay down the debt without incurring exorbitant finance charges. Balance
transferring is as simple as filling out the application of your card issuer of choice. But you should carefully investigate
and research the terms and conditions of your new card to avoid things like balance transfer fees, penalties and surcharges
that some cards will employ.

Card companies like Visa, American Express, MasterCard and Discover have many different kinds of cards and many of them have
attractive balance transfer features.

Some questions that you should asking about balance transfer cards:

What is the ongoing APR of the card after the introductory rate expires?

How long the introductory rate last?

Will I be able to payoff the balance transfer by the end of the introductory APR offer?

Does the card offer an introductory APR on new purchases as well as transferred balances?

Are there any balance transfer fees?

Are there any hidden charges?

Some credit card issuers will whack consumers with significantly higher APR’s after the introductory rate expires. If you
plan on carrying the card balance past the introductory rate offer, this particular balance transfer offer may not be
suitable for you.

In this case, finding a card that offers both a balance transfer offer with a lower ongoing interest rate is the most ideal
solution, particularly if you are unable to pay off your debt within the introductory period. At a minimum, you should select
a card that offers a competitively low introductory rate that lasts until you can pay off the amount you transferred.

Many credit card companies will often charge fees for balance transfers. You should be very cautious when selecting balance
transfer credit cards that charge transfer fees, which can be significant. There are a wide variety of card offers that
either do not charge transfer fees at all or have nominal transfer fees that are reasonable. Stick with the balance transfer
offers that do not charge you fees. Additionally, you should also find a balance transfer card that gives you the freedom to
transfer balances throughout the introductory period, not just when you open the account and do the initial balance transfer.

Most of all, do not misinterpret the thought of balance transfers as a way to escape your debt obligation. It does not mean
that you can avoid paying your debt; it simply provides you more time to pay the balance off without incurring steep finance
charges. But if you are not careful, utilizing a balance transfer irresponsibly can often times add significantly to your
debt burden. For example, if you pay only the minimum after transferring your card balance and do not pay down the card
balance by the time the introductory offer expires, plan on paying out significantly more in finance charges.

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A Balance transfer credit card helps the consumers to move an outstanding balance from one credit card to another. This process also helps the consumer to get lower APR. Balance transfer helps the consumers in many ways. By Transferring high balance from the current credit card to a 0% interest rate offered card, the consumer can save a lot. By considering the benefits, we can name the balance transfer credit cards as best financial tools. There are hundreds of new balance transfer credit cards are introduced. Lets see their benefits and detailed descriptions.

Discover® Open Road Card: This card offers 0% Intro APR for purchases and Balance Transfers for 12 months. Provides full 5% Cashback bonus on gas and auto maintenance purchases. Up to 1% Cashback Bonus on all other purchases automatically. Provides unlimited cash rewards that never expire. There is no annual fee. Provides fraud liability guarantee and easiest online account management options. The card members can DOUBLE their Cashback Bonus (turn into ) when they redeem for gift cards or certificates from many of the 70 brand name partners.

Discover® More Clear Card: This card offers 0% Intro APR for purchases and Balance Transfers for 12 months and 5% cash back bonus on purchases in popular categories that change four times a year like home, apparel and more. Provides up to 1% cash back bonus on all other purchases automatically and unlimited cash rewards that never expire. Provides fraud liability guarantee and easiest online account management options. There is no annual fee and the card members can DOUBLE their cash back bonus (turn into ) when they redeem for gift cards or certificates from 70 brand name partners.

BoatU.S.™ Platinum Plus® Visa® Card: This card offers 0% Intro Annual Percentage Rate (APR)on balance transfers and cash advance checks for the first 12 billing cycles. The card user can earn 1 point for every net retail purchase dollar spent and also he can redeem points for travel, merchandise, gift certificates, and cash. Provides Access to the MyConciergeSM service, a unique personal assistance service. There is absolute fraud protection against unauthorized use, online and offline. And there is no annual fee.

Chase Platinum Visa® Card: This Card offers 0% Intro APR for up to 12 months on purchases and balance transfers. The time period for the introductory APR and the balances to which it will apply will be based on the review of applicant’s application and credit history. There is no annual fee. Provides Flexible Rewards Program like the the card member earns one point per dollar spent. Provides redeem for the card users choice of Cash Back, Merchandise, Travel or Gift Cards. Also provides FREE Online Account Access and FREE travel services including Auto Rental Insurance and worldwide Travel Accident Insurance.

Bank of America Visa® Platinum Plus®: This card offers 0% Intro APR on purchases and balance transfers for the first 6 months. There is no annual fee. Offers Credit lines as high as ,000, Online Banking Service and total security protection.

Citi® Driver’s Edge® Card for College Students: This card offers 0% APR for Six months on purchases, Cash Advances, and Balance Transfers – No Balance Transfer Fee with this Offer. Helps the card members to build credit history and the card users will earn rebates towards any car, new or used. Provide offers like, Get Cash for Miles Driven and free online account management.

Blue from American Express®: This card offers Fee-Free Rewards Program and 0% APR for up to 15 months. There is no annual fee. Provides low balance transfer APR – 4.99% Fixed APR for the life of the balance. Actuallly Blue is named as the card members launch pad to standout shopping and entertainment rewards and one-of-a-kind experiences.

Citi PremierPassSM: This card offers 0% APR on Balance Transfers for Twelve Months and the card member will get 5,000 Bonus Points after the first purchase. The card member will earn one point for every dollar spent on purchases and also earn one point for every three miles flown on any Airline. There is no annual fee.

TripRewards® MasterCard® Credit Card: This card offers 0% introductory APR on balance transfers and cash advance checks for the first 12 billing cycles. The card member earn 2 points for every in net retail purchases and earn 13 points for every spent for qualifying TripRewards hotel stays. There is no annual fee. Provides 24-hour online access and Absolute Fraud Protection.

Blue Cash® from American Express: This card offers up to 5% Cash Back with unlimited Cash Rewards and unlimited cash back earnings. Offers 0% Intro APR for 6 months and low balance transfer rate – 4.99% fixed APR for the life of the balance. There is no annual fee.

Blue Sky® from American Express: This card offers Redeem points to save on any airline, hotel, rental car or cruise – and there are no blackout dates or travel restrictions. The card member earns 1 point for every dollar spend. There are No blackout dates, no travel restrictions and there is no annual fee. Provides 0% intro APR. The card users get world class cardmember benefits including Travel Accident Insurance, Buyers Assurance Plan, and Return Protection.

SkyPoints™ Credit Card from Delta and American Express: This card offers discounts on Delta and Song® flights for as few as 3,000 SkyPoints. And the card member get up to 2,500 SkyPoints with his first purchase. Also provides double SkyPoints on everyday purchases. The card member get one SkyPoint for every other eligible dollar spent. And there is no annual fee for the first year — a savings.

JetBlue Business Credit Card from American Express: This card offers 25 TrueBlue points, worth 1/4 of a free flight, after the first purchase and double award dollars on JetBlue purchases, gas, wireless phone charges, and other business needs. Provides statement credit after the first purchase and 5% savings on all JetBlue flights purchased directly, using JetBlue Business Card. Automatic discounts at leading merchants through the OPEN Savings program. Provides protection on travel, Car Rental Loss and Damage Insurance, Baggage Insurance, and more.

Bank of America Visa Signature® with WorldPoints™: This card offers 0% Intro (APR)on balance transfers and cash advance checks for the first 12 billing cycles. The card members will earn 1 point for every dollar spend in net retail purchases. The points are redeemable for cash, brand name merchandise, travel with no blackout dates, dining certificates and more. There is no annual fee. The card members can take advantage of preferred seating – Visa Signature Access gives the card user an exclusive entry to exciting events as well as the best seats at sports, entertainment, and cultural venues. Provides ability to reserve last-minute tables at popular restaurants – Visa Signature Dining makes it easy to get preferrred reservations, discounts, and special offers at the nation’s hottest restaurants. The card member enjoy more savings and more extras and will get discounts at select merchants, valuable upgrades, and savings of up to 50% on accommodations at spectacular places.

Efectiva™ Visa®: This card member will earn points towards cash back. This card offers 0% (APR) on purchases and balance transfers for the first 6 billing cycles. The card member earn 5 bonus points with the first purchase. Additional advantage is that the card member get bilingual communications and services in English or Spanish. There is no annual fee.

Citi PremierPass® Card – Elite Level: This card offers low APR on balance transfers for 12 months. The card members will earn 1 Flight Point for every mile they fly on any airline — or anyone else whose ticket bought with the card, Earns 2 Purchase Points for every dollar spend at gas stations, supermarkets, and drugstores, plus earn 1 Purchase Point for every other dollar spend. Provides unlimited companion travel (minimum fare requirements apply). The card members can redeem points for: flights on any airline with no blackout dates. Provides retail gift cards, electronics, and even statement credits through ThankYou Network, the free rewards program from Citi. Exclusive bonus offer is the card member earn 15,000 bonus points after his first purchase is made within 60 days of account opening.

AT&T Universal Platinum Card: This card offers 0% APR on Balance Transfers for Twelve Months – a Balance Transfer Fee Applies with this Offer. The card member save on Phone Services used everyday and provides up to 30 free phone Minutes per month – Anytime, Anywhere. And there is no annual fee.

Union Plus® MasterCard: This card offers FREE rewards program designed for hard-working union members. The card members get 2,000 bonus points after first purchase, more than halfway to a Gift Card. Also earns 1 point for every dollar spent anywhere and Earns 2 Points for every dollar spent at gas stations, grocery stores, and drug stores. There are no balance transfer Fees and APR stays FIXED until the balance is paid in full. There is 1.99% introductory APR on new purchases. There is no annual fee and no liability for unauthorized use.

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Balance transfer credit cards can be an effective solution, properly used, for consolidating existing debts and avoiding a high APR on an existing card. However, customers should be aware of what to know before applying for a card, as well as what problems balance transfer cards will not solve. Customers should be aware of whether or not the balance transfer card’s introductory rate increases over time, canceling out the benefits of the balance transfer card offers in the first place. They should also be aware that previous bad credit history can complicate the use of a balance transfer credit card, and that only prudent overall financial habits in conjunction with occasional balance transfer use makes for a lasting solution.

Anyone who’s used a credit card for any period of time has likely found himself or herself faced at least once with the specter of debt: perhaps a paycheck doesn’t clear in time, a friend’s assistance fails to come through, a last-minute furniture sale attracts no customers. The outstanding balance is high, and an interest rate that at first seemed only theoretical (“I won’t have to worry about that,” the user thinks, “as long as I’m careful”) now seems disturbingly real. This situation is always possible, a natural product of any necessary financial risk, and there’s no shame in it. All that matters is finding a solution for the situation.

And solutions exist. It’s a common enough situation, in fact, that an entire variety of credit card has sprung up to cater to exactly this kind of user: balance transfer credit cards. The principle behind a balance transfer credit card is simple: the card encourages its user to consolidate his or her outstanding balance onto a single card with a very low introductory APR, often 0%. The user is then free from whatever higher APR might have crept up on his or her existing card, and it seems as if all financial worries have been eliminated in a moment by balance transfer credit cards: the magic bullet, it would seem, of the financial world.

But it’s important to realize that a balance transfer credit card is not a magic bullet: it’s a financial solution, like any other, with its own advantages and potential pitfalls. And it’s important for the potential balance transfer customer to keep a few things in mind when considering whether or not to save money by using balance transfers to consolidate debts.

The most crucial factor to consider is that the introductory rate on most balance transfer credit cards does not last forever. If the user thinks of balance transfers as outright eliminating debt problems–or at least eliminating them until some nebulous future time–that user could potentially run out the initial 0% grace period (most often twelve months) and find himself or herself faced with an APR that typically ranges anywhere from to –not an unreasonable rate for someone who’s expecting it, but otherwise a possibly disastrous surprise.

So potential customers should make certain to research the full details on any balance transfer credit card (or any credit card) before making the decision to apply. Some cards also have options that could be deal-breakers (an high initial balance transfer may be required), or options that could be highly useful (some cards allow the user to maintain the initial 0% rate until all initial balances are paid off.) As in any situation involving credit or finance, the informed customer is always the more effective customer.

Another, perhaps more fundamental factor to consider before applying for a balance transfer credit card: balance transfers are not, in and of themselves, a cure for existing debt problems. They are a treatment, and one that only works in conjunction with good financial habits all around. Some balance transfer credit cards determine their introductory APR or regular APR (or both) by looking at the applicant’s overall credit history, meaning that in these cases existing financial problems, rather than being eliminated by a card, will actually prevent the card from doing its work. So balance transfer credit cards should not be looked at as a lifeline or a magic bullet, an excuse for building up high balances in hopes that a timely transfer will wipe all history out: rather, balance transfer credit cards are a tool, one useful only when accompanied by general financial prudence.

No one is perfect, and in the case that things go wrong and debts mount with no immediate method of paying them off in sight, consolidating balances can be a powerful (if in many cases temporary) remedy. But before making the decision to apply, customers must remember first of all to become informed about their options, and must further remember the first rule of finance: never assume the existence of a magic solution to problems; never substitute an attractive credit option for judiciousness and a sound financial plan.

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Are high credit card fees giving you sleepless nights? Think smart: balance transfers could be an intelligent short-term solution. The following article can be used as an introductory guide and a primer on the use of balance transfers that discusses the intricacies of balance transfer details. Transfer the weight off your shoulders and get a balance transfer credit card with a lower rate of interest. However, make sure to run through the terms and conditions of the new balance transfer card, to make sure you win in the long run.

If you are not really keen on getting a new card, tell your existing company that you want to transfer your balance to another card that offers a much lower rate. Your existing credit card company just might offer you a better deal. If not, then go ahead and call the competition!

So what is so great about balance transfers? Balance transfers to a card with a lower rate can significantly cut down your interest and fees. The most common rate of interest offered by companies on balance transfers is 0% for 3 to 12 months. If you are fortunate and your credit is good enough, you might qualify for a 0% interest card for 12 months on balance transfers and purchases. Be aware, however, that some cards, will link the introductory annual percentage rate (APR) to the billing cycle of the card.

There could be some additional perks available on your balance transfer card as well:

1) Your new card may charge no annual fees.

2) The grace period on payments might be longer.

3) Rewards like cash back on purchases might be available.

4) Discounts from certain retailers, identity theft protection, and even car insurance can be thrown in as well!

How Do I Get One?

You will be required to go through some basic application procedures and paperwork on a balance transfer. You could write a balance transfer on one of the convenience checks that the card issuer will provide after getting approval on the card. These function just like normal checks but there are some things to be aware of, such as expiration dates. Time can cost big money, in this case, with the old interest rates snapping at your heels. How much you can transfer will depend entirely on the credit limit of your new card.

The fees for balance transfers are similar to that of cash advances, but often times, fees will be waived for the very best card offers. If there are associated transfer fees on the card, it is advisable that you avoid transferring small balances, as the transaction fees might undercut your potential savings. Some additional fees on these cards might include:

1) Late Fees: Once the introductory period on your balance transfer ends, you will start incurring finance charges on the remaining balance. Late fees on these card offers are particularly expensive. In order to avoid these exorbitant fees, make sure that you mail payment well in advance of the due date. If you are using an ATM deposit, stay informed about the processing time of your payment. Banks either charge a flat fee, such as or , or a percentage, such as 5%, of the minimum payment due, for example

2) Over-Credit Limit Fees: Each time you charge your card beyond the credit limit, the bank has the ability to impose a fee. It is possible that many of these aforementioned fees will gather simultaneously (in addition to interest charges) during the same billing period! Banks usually charge or for this fee or up to 5% of the amount on the exceeded limit amount.

3) Lost Card Replacement Fees: If you ever happen to lose your card, some banks might charge you anything between and for a replacement.

The most important thing to remember regarding balance transfer credit cards is to make all your payments on time and pay off the outstanding balance within the introductory time frame. Usually, there is no grace period offered up for balance transfers and unless you have snapped up an introductory 0% APR, interest will begin to accrue immediately. The calculation can get a little tricky too. Your initial repayments will first go towards clearing the balance transfer amount before making a dent in any outstanding balance created from recent purchases with the card. So if you want to avoid this mess, keep a separate card for balance transfers and another one for regular purchases.

When the Joyride Ends

You should be keenly observant of the expiration date of your promotional offer. Once it ends, you will be charged the normal rate of interest. All remaining purchase and balance transfer amounts will be subject to a much higher APR and significantly higher finance charges.

Your credit history will determine your post introductory APR on your balance transfer credit card. So if this APR is higher than the rate on your old balance transfer card, you could incur more expensive finance charges if you carry a balance from month to month. Just make sure that you transfer your balance to a new card that offers both a lower promotional rate as well as a lower ongoing APR.

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0 Intro APR credit cards are used by many people to avoid high interest rates on outstanding balances. As soon as the 0 Intro period expires – they find another credit card with 0 intro offer or low interest offer on balance transfer and switch balances. In the short term it might look as a good strategy, but it has its own drawbacks. Here are few facts, which if overlooked can cost the credit card holder dearly.

1. The credit card companies might stop approving such applications when they find that the applicant has a sustained history of balance transfer misuse.

2. Lenders like people who pay them interest, that’s the main source of their income. So, if the find that when it comes to repaying your debt with interest, you simply cut corners and transfer the balance to a new credit card. They won’t be interested lending to you.

3. With such repeated balance transfers, and closing old credit cards will have an impact on your credit history also. The remarks in your credit report can drive away potential lenders, and you’ll have to face the music even when you apply for other type of loans like auto loan, mortgages, personal loans etc.

4. If a credit card issuer refuses one such request of balance transfer, your entire plans of getting the debt to a low interest rate can be jeopardized and you could be facing high APR’s, which can land you in further trouble.

5. Balance transfer credit cards don’t tolerate late payments, so if you miss out on a particular repayment all the benefit is lost and instantly the high regular APR’s are applied. Again a low rate on balance transfers does not mean the overall APR’s will also be low. There could be different APR’s for purchases, and cash advances.

Though balance transfers are not a bad idea, but excess of everything is bad. Besides, denting your credit history, repeated balance transfers are also a bad financial habit. It is like not facing the eventual reality of repaying your debt. Balance transfers are there for good reasons and should be used as such- in that way they will benefit the credit card holders in a big way.

Continually opening new low interest credit card accounts and shifting money without attacking the overall debt could worry lenders, potentially hurting your chances for borrowing money in the future. Credit card issuers favor customers who pay interest, viewing customers who transfer debts over and over to avoid paying interest as less-than-ideal borrowers.

Such excessive balance transfer behavior can also make it tough to borrow money from other lenders outside of the credit card industry, such when shopping for a home or automobile.

Separately, should you make a misstep — for example, by making a late credit card payment — your credit card’s regular (and undoubtedly much higher) interest rate will get triggered. That could also result in a sudden surge in the APR on your credit card debt.

Another reason to be wary of performing too many balance transfers is that the low interest rate you get with a new balance transfer credit card may just apply to the transferred balance itself. It is important to note whether the low interest rate on balance transfers also applies to purchases.

Should you need to make a new purchase with the card, the interest on your spending could be at the credit card’s regular interest rate. However, certain balance transfer credit cards, like the Discover Platinum Card and the Citi Platinum Select Card, offer low introductory APR’s on both balance transfers and purchases.

Meanwhile, be aware that with a balance transfer credit card, all the payments you make will likely first be applied to the 0% portion of your debt. As a result, any other credit card spending will accumulate interest until the transfer is paid off and you can then tackle the most recent charges.

However, all these warnings do not mean that a credit card balance transfer is always a bad idea. In fact, balance transfer credit cards can really work in your favor if used sparingly. If you don’t go overboard with transferring balances, and pay attention to any balance transfer fees your credit card may carry, transferring your balance to a lower interest credit card can be an excellent way to save yourself some money as you pay down your debt.

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If currently carry a balance on your credit cards, chances are you are spending hundreds, if not thousands of dollars a year on interest. How much money you waste every year will vary based on how much credit card debt you have, but, according to studies, the average American household carries approximately 00 in credit card debt. At a modest interest rate of 12%, this would translate into 0 a year in interest expenses. If the interest rate is higher, say 16%, carrying a balance on your credit card could be costing you over 00 a year in interest!

0% APR balance transfers provide an excellent solution to consumers who carry debt. With one of these offers, you can enjoy an entire year without interest to help you pay down your current debt and prevent compounding interest from moving your credit card balances into the stratosphere. Here we will discuss the benefits of 0% balance transfers.

The best type of 0% offers are for no fee balance transfers. Buried in the fine print of nearly all credit card applications is the balance transfer fee. This nuisance fee applies to 3% of all balances transferred. Over the past year, balance transfer fees have risen quite a bit. Generally, the maximum dollar amount does not exceed – per transaction. However, a few sneaky companies have put no limit on fees.

Fortunately, with a no fee balance transfer, you can avoid these fees. In some instances, the fee to transfer a balance can add up to 0 or 0 on an 00 balance transfer, depending on how many different cards you need to transfer balances from.

Because there are a limited number of no fee balance transfer credit cards on the market, the next best option for balance transfers is to find a credit card that offers a 0% APR on purchases and balance transfers for 1 year. While the number of these offers is becoming somewhat limited, finding a credit card that offers 0 APR balance transfers as well as a 0 APR on purchases is easier than finding a no fee balance transfer credit card.

To select the best balance transfer credit card, begin by looking at the dollar cap on fees for each transaction. This can be especially helpful if you are simply transferring a balance from one credit card. For example, if you have an 00 balance on a single card, your maximum balance transfer fee will be to , or around 1% of the transaction.

The effect of balance transfer fees grows when you have many small balances on multiple cards, as each card you transfer will be counted as a single transaction with a 3% fee. For example, if you have one credit card with a 00 balance, two credit cards with a 00 balance and a third credit card with a 00 balance, your total balance transfer fee will be 5 or 2.4% of the balance.

Even though paying a balance transfer fee isn’t the most pleasant of experiences, the savings you can reap with 0 balance transfers more than offsets this annoying fee. For example, if you are transferring 00 from a single credit card with a 15% interest rate, your total interest savings, including fees, will be close to 00. Now, even if you have to transfer balances from multiple credit cards, and thus pay multiple fees, you will still be saving over 00 on interest. Plus, this doesn’t even take into account the amount of money you will save with your 0% interest rate on purchases.

Aside from 0 balance transfers, there is one last type of balance transfer offer. This is the fixed APR balance transfer. For some people, it may be worthwhile to use 0 balance transfers for a number of years, transferring your debt from one company to another until the balance is repaid. However, there is always the chance you may not get approved for a 0% rate in the future. If you would prefer to avoid this risk, a fixed APR balance transfer may be right for you.

With a fixed APR balance transfer, you pay a set rate until your balance is repaid in full. For example, a typical fixed APR balance transfer offer will provide a 5.99% interest rate for life. A few credit cards offer no fee fixed APR balance transfers, but the majority do not. Thus, if you opt for a fixed APR balance transfer over a 0 APR balance transfer, your interest rate in the first year will be closer to 8.99% with fees. However, if you know it will take you many years to repay your balance, the long term rate of 5.99% can provide great savings and the security of knowing your interest rate won’t be going through the roof anytime soon.

Overall, the best option for consumers looking to lower their credit card interest rates is a 0 APR no fee balance transfer. However, since these offers are difficult to come by, the next best option is to find a credit card that offers 0 APR balance transfers and a 0 APR on purchases as well. Lastly, consumers looking to pay down their debt over the long term may want to consider a fixed APR balance transfer. However, as with any type of credit card, always look for one with low or no balance transfer fees.

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Before you transfer that hefty credit card balance to another credit card account, be sure to read the fine print and ask questions or you could end up paying transaction fees and a much higher interest rate than you expected. A lot of the information is hard to decipher so read through credit card offers a few times.

Different credit card companies offer different things, for example, some offer waive fees for “initial balance transfers” only, while other companies charge transaction fees as high as 4 percent, so the higher the balance the higher the transaction fee. If that is the case every other transfer is treated as cash advances and is subject to cash advance fees.

[ReviewAZON asin="1581605013" display="inlinepost"]There are some pretty intriguing benefits of credit card balance transfers, including lowering interest rates, consolidating credit card debt, and improving credit report. Lowered interest rates allow credit users to lower minimum monthly payment and pay off balances sooner. Consolidated credit card debt lowers minimum monthly payment requirements and pay off balances quicker.

Balance transfers can help improve your credit report; by putting all your outstanding balances from multiple cards onto one card leaving you without a balance on the cards you’re transferring from.

In your effort to erase credit card debt, consider consolidating your balances. However, before deciding to transfer your credit card balance, you need read over the fine print. Credit card balance transfers can consolidate your credit, provide low interest rates, improve you credit reports, free up cash, and its simple to do.

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In today’s credit market, consumers are inundated with seemingly endless 0 balance transfer credit card offers from credit card companies.

On television, radio and online, as well as in the mail and traditional print media, advertising targeted to households carrying high-interest credit card debt sings the praises of the credit card balance transfer, of the ease of consolidating debt and the savings it will produce.

Before deciding to go forward with balance transfer credit cards, there are some things cardholders should know in order to make an informed decision.

What Types Of  0 Balance Transfers Credit Cards Are Available?

There are two different credit card transfer types, limited duration and fixed-rate balance transfers.

Fixed-rate balance transfers offer a rate of repayment that will never change over the life of the debt, as long as the cardholder does not go into default. Limited duration balance transfers feature 0 interest credit card to induce the cardholder to make the transfer, then switch to a regular rate after the introductory period ends.

In today’s market, limited duration balance transfers dominate, because they are easy to obtain and they immediately save the cardholder money, buying them time to pay down the debt.

What Is The Duration Of The Balance Transfer Period?

Regardless of transfer type, 0 APR balance transfer does not remain interest-free for life. Many low interest credit card offers come with a promotional rate of somewhere between 0 and 2.9%, but these rates expire, sometimes at 6 or 12 months, and then the accounts go to the regular annual rate, which in today’s market is an adjustable rate based on the prime rate.

This does not mean that interest free credit cards are not a good deal; it only means cardholders should do their homework and investigate their options prior to transferring their balances.

How Do I Initiate A Balance Transfer?

A credit card balance transfer is simply the act by a credit card company on behalf of a cardholder of transferring the debt held by that cardholder from one credit card to another, usually for the sake of long-term interest savings. Initiating a balance transfer is simple.

Cardholders usually just have to call a card company and speak to a company representative, verifying information to ascertain their identity, and authorize the transfer. The rest of the work is done by the credit card company.

Credit Card Debt Consolidation

Consolidating credit card debt is the act of combining all credit card balances into one account.

Debt consolidation is a good idea if the debt holder is able to save money in interest, adding to their ability to repay the debt, but cardholders are cautioned against keeping too many open lines of credit during the repayment process.  Doing so could negatively impact credit scores and a their ability to obtain loans for homes and vehicles.

Taking advantage of 0 interest credit cards is a smart financial move for cardholders if they first consider all the factors involved and make an informed decision.

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Once you have determined that debt credit card debt consolidation is right for you, it is time to explore the options for debt consolidation.  These options can vary depending upon your credit score, security and other personal factors.

Let’s take a brief look at your debt consolidation options.

Secured Debt Consolidation Loans

If you own your own home, and you have equity in your property, then you can take out a new mortgage or a second mortgage (these are called home equity loans) with a new lender consolidate debt at a low interest rate.

Even in today’s economy, the process is quick and straight forward. Howeve, beware that these loans are not instant loans.  You will have to obtain an appraisal and arrange for a closing through a title company.  At closing you get a check for the amount of money in excess of that needed to pay off the first mortgage.  You then use the money to pay off the various creditors.  Because the loan is secured with your residence or other real estate, the loan is called a secured loan.  Therefore, the risk is great that you will lose your home if you do not make the monthly payments in a timely fashion.

Unsecured Debt Consolidation Loans

If secured loans are “secured” by property, then “unsecured” loans are secured by nothing more than your promise to repay the lender.  So, basically the lender will loans you money without the means to repossess any property if you default on your payments.  As a result, the interest rates and fees are higher on unsecured debt consolidation loan.  This is to compensate the lender for the risk factor involved.

There are two basic types of unsecured debt consolidation loans.  Let’s take a look at each.

Credit Card Balance Transfers. If you have a good credit score, you will be eligible for credit card balance transfer offers to consolidate other credit cards debts at a low (or even zero percent) interest rate.  The major drawbacks to this type of transfer is that the low interest period is usually pretty short (6 to 12 months) and the transfers carry a balance transfer fee of 3% to 4%.  If you cannot pay off the balance within the repayment period, you have to roll the balance over onto another card and pay another balance transfer fee.  If you are unable to find another offer, you will be stuck with the regular interest rate on the card after the transfer period expires.

Bank Debt Consolidation Loan. Again, if you have good credit, you can apply to your local bank for a debt consolidation loan.  The bank will typically charge a higher interest rate on the loan because it is not secured by property.  But, the process will be straightforward and the term will be longer, thereby decreasing the monthly payments.  You will not have to roll the loan over every six to twelve months either.  So, this option, while carrying higher interest, is also more user friendly.  These are cash loans so the bank will deposit the loan proceeds in your account and you will have to write a check to each creditor.

Bad Credit Loans For Debt Consolidation

If you have a bad credit score, you are going to have to explore the possibility of a bad credit loan for debt consolidation.  Note that with the recent FICO 08 changes, occasional missed or late payments do not adversely affect your credit score as badly as they once did.  However, defaults and bankruptcies still have the same effect.

Just as it is for bad credit personal loans, the interest rate and fees are much higher for loan consolidation if you have bad credit.  If at all possible, post some sort of collateral to try to entice lenders to make consolidation loans at lower interest rates.  If you must take out an unsecured debt consolidation loan, you need to carefully weigh the interest and other costs against the need to consolidate debt and act accordingly.

Beware Of Hidden Fees And Other Costs

There can be other costs involved in securing a debt loan to consolidate credit card debt.  These include arrangement fees and redemption penalties on your existing credit agreements.  Investigate these possibilities before you consolidate debt into a new loan.  Also, look out for companies that advertise ‘no added fees’.  Sometimes their interest rates are much higher.

The best way of finding a lender is to do your homework. Check out one of the many comparison sites on the internet to compare different debt consolidation companies.

After all, it costs nothing to shop around.

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Here are a few tips to apply for credit cards and begin saving interest now.

Find Low or Zero Interest Credit Cards

When searching for the cheapest credit cards, there are a few different things to take into account. The best credit cards offer an introductory rate that can be as low as 0 percent APR. This is great, but before you consider these 0 interest credit card offers, you want to be sure you know all of the details.  Some credit card deals are not really “deals” at all.

Find out how long the introductory rate will last.  Typically, the no interest rate is given to a new cardholder for the first six months. So, the next step is to check the regular APR to find out what your rate will switch to once the introductory rate has concluded.

You will also want to be aware of any additional fees that are associated with the new card, such as an annual fee. There are many zero percent credit cards that you can obtain without an annual fee.

Since you are trying to save money, it is suggested you choose a credit card offer that does not charge an annual fee on their credit card.

Initiate a No Interest Balance Transfer

Using balance transfer credit cards can be done in two different ways.

The first and most recommended is to find a company that offers 0 interest on the entire life of a balance transfer. Companies offering this option are looking to gain you as a long time customer. Any purchases you make on your card will be billed at the regular interest rate, but the balance you have transferred will be at no interest until you have paid it off.

This is an excellent way to save money and cut down interest costs. This is also the most advised option. If you are unable to find a company that offers a no interest balance transfer, the second option would be to find a card that has a great introductory rate.

In this case, it would be wise to pay off as much of the balance transferred as possible before the rate goes up.

Consolidate Credit Card Debt

Consolidating your credit card debt can save you a lot of money in the long run!

If you have several credit cards, it is suggested that they be consolidated onto one of the many low interest credit cards out there in order to money in interest payments. Take a look at your credit card statements to verify the interest rates you are currently paying.

Depending on your financial situation, you will want to take some or all of your credit cards and open one new account that has the best overall interest and benefits for you.

Instead of making three different minimum payments, make only one to a company that is giving you either a low or a no interest rate.

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These promises are incredibly inviting offers to those in our society most suffering under the burden of unemployment and staggering debt.  Unfortunately, many of those caught in this trap are left deeper in debt, without legitimate alternatives and nowhere to turn for help.

Do not let this be you!!!  If you are considering using debt consolidators to consolidate loans, watch out for these traps and pitfalls.

The Bad Credit Loan

Credit card consolidation loans (the good ones) are not easy to get.  This is because you probably need a debt reduction loan because you have missed a few payments on your credit cards and your credit score has taken a major hit.

If you are a credit risk, the debt consolidator will promise easy debt settlement, and you with a bad credit loan and paying high interest rates (higher than you are paying now).  Even though your monthly payment is lower, you will pay more interest over a longer period of time.

Debt Consolidators Will Take Care of Everything

The credit consolidation company promises to make your life easier by negotiating lower interest rates and payments.  You need only make one easy monthly payment.

Look For High Hidden Fees. In reality, many debt consolidators charge a fee as a portion of the payment you make.  This fee is usually around 10%. They forward the payments to the creditors and get an additional 10% to 15% from the creditor as well.  Is it really worth paying someone else to negotiate lower interest rates, stretch out your repayment schedule and pay off the highest-interest debts first?

They Might Make Late Payments. Another trick used by debt consolidators to separate you from more of your money is to negligently or intentionally make late payments.  The creditor charges a late fee, thereby increasing the balance.  The debt consolidator then stretches the repayment out over a greater period of time and charges you more months of processing fees.

Balance Transfers Can Be A Trap

Even though 0 interest credit card offers are still commonplace, those rates only last a few months.  If you want to continue paying low interest, you have to switch cards and pay another balance transfer fee.  I admit that I used to use these balance transfers for business debt consolidation.

There are two pitfalls to using balance transfers.

First of all, you have to have a good credit score to qualify.  Second, remember that each time you conduct a balance transfer for credit consolidation, the activity shows up on your credit report.  If you are unable to transfer the balance at the end of the initial term, you could be left with a high interest credit card and a large balance.

Just because you have made a few bad credit moves does not mean that you have to continue down that same path. Avoid quick fixes to your credit problems.  If you get into trouble, in most cases you can call the creditor and negotiate a better repayment plan, avoid unnecessary fees as well as the balance transfer trap.  You can do anything that a debt consolidator can do.

After all, I think it was Paul Harvey who once said that:

“No man can become debt free by making another loan.”

I agree.

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Many ultimately decide to consolidate debt with some sort means to consolidate credit card debt.  Debt consolidation requires the borrower to examine the type and amount of credit card debt before ultimately selecting the option that is right for his circumstances.

Often, borrowers realize that essentially they have a choice between a credit card balance transfer or a debt consolidation loan.  The advantages of one over the other depend mostly on the number of unsecured personal loans versus the amount of credit card debt and the borrowers’ credit score.

Interest Free Balance Transfer

An interest free balance transfer credit card is an short term debt consolidation solution.  At the end of the initial term, the consumer would have to search out another interest free credit card consolidation offer.  However, there are three problems in using short term balance transfers for credit card debt consolidation.

The 3-4% Balance Transfer Fee. If the consumer is lucky, the balance transfer fee would be capped at $50 to $75 dollars.  However, some credit card issuers have been removing the caps on balance transfer fees.

A Good Credit Score Is Essential. If the consumer has missed a payment or made a late payment on any other bill, credit card issuers are unlikely to approve the application.

The Interest Free Period Is Short. The consumer is betting that he or she will either be able to pay off the credit card debt before the end of the time period or transfer the remaining credit card balance to another interest free credit card.

As such, the interest free credit card should be reserved for those that can pay off the balance within six to twelve months.

Unsecured Debt Consolidation Loans

A long term alternative is to consolidate debt with a low interest debt consolidation loan.

The unsecured debt consolidation loan takes the complication out of credit card debt relief.  Consolidate loans in a way that combines many small balances and obligations to one with a (hopefully lower) monthly payment.

Even though it is not an in interest free credit card, the debt consolidator does get the advantages of (1) a single low monthly payment, (2) the positive credit entries showing all other debts as paid; and, (3) the inability to charge more, thereby never getting the debt paid.

Short Term Or Long Term Debt Consolidation Solution?

If you have a small amount of credit debt, then an interest free credit card is a good option for you.  But be prepared for a balance transfer fee and be able to produce a good FICO score.

For longer term solutions to credit card debt, then an unsecured debt consolidation loan is the preferable choice.  However, note that credit counseling services advise against using a HELOC to get out of debt.  The debt consolidator will be paying interest on impulse purchases for twenty to thirty years – and that makes no sense at all.

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There are many low interest and even 0 APR credit cards available!

Read the following tips to begin saving:

Find the Low or No Interest Card that is Right for You

Before you begin filling out that credit card application, there are a few different things to take into account.

Many credit card companies will offer 0 credit cards with an interest free introductory rate. This is great, but before apply for a credit card, you want to be sure you know all of the details.

Find out how long the introductory rate will last. Typically, the no interest rate is given to a new cardholder for the first six months.  It used to be as long as a year.

Check the regular APR when you apply for credit card. Find out what your rate will switch to once the 0 APR rate has concluded. You will also want to be aware of any additional fees that are associated with the new card, such as an annual fee. There are many cards that you can obtain without an annual fee. Since you are trying to save money, it is suggested you find a company that does not charge an annual fee on their credit card.

Initiate a 0 APR Balance Transfer

Initiating a 0 balance transfer can be done in two different ways.

The first and most recommended is to find a company that offers 0 balance transfers on the entire balance for the life of the loan. In this market, that is going  to be tough to do.  But, if you have good credit, you may be able to find balance transfer credit cards that offer a 0 APR balance transfer for the life of the loan.  Companies offering interest free credit cards are expecting to gain you as a long time customer.

Remember, any purchases you make on your card will be billed at the regular interest rate, but the balance you have transferred will be at no interest until you have paid it off. This is an excellent way to save money and cut down interest costs. This is also the most advised option. If you are unable to find a company that offers a no interest balance transfer, the second option would be to find a card that has a great introductory rate. In this case, it would be wise to pay off as much of the balance transferred as possible before the rate goes up.

Consolidate Credit Card Debt

Consolidating your credit card debt with a 0 interest credit card can save you a lot of money in the long run! If you have several credit cards, it is suggested that you consolidate them with one credit card balance transfer and save money with the lower interest and easier monthly payment.

Take a look at your credit card statements to verify the interest rates you are currently paying.

Depending on your financial situation, you will want to take some or all of your credit cards and open one new account that has the best overall interest and benefits for you.

Instead of making three different minimum payments, make only one to a company that is offering you the 0 balance transfers option.

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I understand that you do not want to ruin your credit by filing bankruptcy, but perhaps one of those debt consolidation loans might provide debt relief, right?  Well, many lenders out there are offering debt management solutions in the form of “attractive” debt consolidation loans.

But, as with any of the debt solutions out there , buyer beware.

Let’s take a short look at how you can use credit card consolidation loans to get credit card debt help without getting burned.

Debt Consolidation:  What Are Debt Consolidation Loans?

Getting A New Credit Consolidation Loan. Simply stated, debt consolidation (such as  credit card consolidation or medical bill consolidation) involves combining all of your separate debts into one new debt consolidation loan with a lower monthly payment and (hopefully) better interest rate.  Because the lender extends the term of the (combined) loan and (hopefully) lowers the interest rate, the new loan can be paid off much more quickly, even with the lower monthly payment.

Initiating A Balance Transfer Request. If you have a credit card with a large limit, you can use a credit card balance transfer (either by check, phone or internet) to combine your credit card debt (or other debt for that matter) onto the one credit card.

HELOC Or Student Loan. Other common ways of consolidating debts involve getting a HELOC (Home Equity Line Of Credit) or getting a student loan (if you are a student).

Regardless of the debt solution, your ultimate goal is to get out of debt while increasing your monthly cash flow.

What Are The Advantages Of Debt Consolidation?

As discussed above, credit debt consolidation loans involve several distinct advantages to the person trying to get out of debt.

Lower Monthly Payments. By extending the term of the loan, debt consolidation usually results in a lower monthly payment, thereby increasing household cash flow.

Lower Interest Rate. In the ideal case, the newer loan will have a lower interest rate, thereby allowing more of the monthly payment to go toward principal.

One Creditor/One Monthly Payment. Managing a single debt will decrease your stress about debt.  You don’t have to worry about multiple credit card statements, due dates and payment amounts.

What Are The Disadvantages of Debt Consolidation

A HELOC Puts Your Home On The Line. When you use a HELOC or other mortgage for credit card debt help, you are essentially borrowing against your home to pay off that shrimp dinner or plasma television that you put on your credit card.

Higher Debt Service Costs. While extending your debt over a longer period of time can lower your payments, it does not save you money if you are borrowing at a higher interest rate.  In fact, the overall cost of the debt consolidation loan may be much more because you are paying more interest over a longer time period.

A Guarantor May Be Required. If you wait until after your FICO score takes a hit, you may have to have a co-signer to qualify for a debt consolidation.  If you can find someone who is willing to sign for your debt, then great.  But now, not only are you liable for the debt if you default, but so is your friend or relative.

Is Debt Consolidation the Answer?

Getting a debt consolidation loan can be a smart debt solution if you can get an unsecured debt reduction loan at a low interest rate and without a guarantor.

Weighing the advantages and disadvantages of credit debt consolidation allows you to make an informed choice about whether to consolidate your debts or pay them off as is. Even though credit consolidation makes getting out of debt easier, it does not solve the underlying problem of financial mismanagement that probably caused the credit card debt to spiral out of control in the first place.

If you do not take steps to solve the underlying problems with debt management, then temporary debt relief will just camouflage the problems.  Eventually, you will find yourself back in the same situation again and again.  Replace you bad spending habits with good ones that will allow you to get out of debt and encourage you to find  permanent debt solutions for your future.

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These no or low interest credit cards offers are not easily found unless the consumer has excellent credit. The most common method of obtaining a low or no interest credit card is to find a deal of a balance transfers.  Most of the time, these cards don’t have an annual fee, although balance transfer fees of 3% to 4% may exist.  In the tighter credit climate, the balance transfer period is now shorter (an average of six months or less).  Even with the tighter requirements and shorter balance transfer periods, finding a low interest credit card is a key personal finance strategy particularly if the consumer is currently carrying a balance.

Qualifying For A 0 APR Credit Card

Obtaining any VISA credit card in the current credit market is not a simple task.

To obtain a 0 interest credit card today, there are tighter qualifications and guidelines that applicants must meet before being able to qualify.  Issuers offering the best credit cards are going “the extra mile” to make sure the applicant is not a credit risk.

Even with the adoption of FICO 08, issuers still closely review past payment history, credit score and number (and seriousness) of any delinquent accounts. If you have a good credit score and no seriously delinquent accounts, your chances of getting a 0 APR balance transfer credit card are reasonably good, even now.

Applying For A 0 APR Credit Card

To obtain a low interest credit card, it is best to start by filling out a credit card application through your own local bank or a qualified credit lender.  After all, the consumer already should have a positive banking relationship with this lender which should help in the credit card application process.  Ask for their low interest credit card offers. Most banks carry these and you will be sent an application either through mail or on the phone (depending on your bank).

Some consumers elect to go through online referral sites to apply for a VISA credit card, which is only okay.  But, the consumer would be wise to evaluate whether or not they have a history of good service.  If they try to charge you a membership fee or other fee to apply, look elsewhere.  A consumer should not be subject to any such fee, even if he or she has less than stellar credit.

0 Credit Card Offers:  Enjoy The Rewards Of Good Credit

If the consumer enjoys good credit, he or she should reap the rewards associated with a low interest credit card.  Owners of these types of credit cards enjoy rewards points that can be redeemed for hotels, airline tickets and, sometimes, cash.  While the bonuses vary from lender to lender, they are extremely helpful when needing to make future purchases. One caution is that bonuses that can only be spent at certain shopping stores or online marketplaces.

What About Those With An Average Credit Score?

In the credit market of today, lenders offering 0 balance transfer credit cards require excellent credit.

In some cases, the issuer might be a little lenient and qualify the consumer that has “good” credit instead. That is one of the benefits that consumers enjoy as a result of the recent FICO 08 changes.  Remember, the average APR is 14.9% on credit cards, which is almost twice as much as the low interest rate of 7% found on most low interest cards.

So, if a consumer has the credit score `1to qualify and the balance to justify paying the balance transfer fees, 0 credit cards are still a smart financial move.  In the end, any time a consumer can borrow money at a low interest rate, he stands a better chance of paying off the balance without any problems or late payments.

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Interest Free Credit Cards:  A Smart Way To Consolidate Credit Card Debt.

One of the most popular moves that consumers use for credit card debt relief to take advantage of interest free credit cards and their balance transfer options.  0% balance transfer credit cards can save you $150 to $200 for every $1,000 owed (assuming your high interest credit card rate is around 15-20% APR.).  If you carry a large balance on one or more credit cards, a smart balance transfer can create significant savings.

How To Evaluate Interest Free Credit Cards

When evaluating multiple 0% interest credit card offers, you should apply for credit cards with the longest interest free period and the lowest overall balance transfer fees.

Understand that, in these tough economic times, you will have to have an excellent credit score to get the best 0 interest credit card deal.  On the other hand, interest free credit card offers are still available to people with average credit ratings with higher balance transfer fees and shorter interest free terms.  So, don’t give up trying to consolidate credit card debt.

Do Not Overlook The Impact Of Balance Transfer Fees

Until recently, the standard balance transfer fee on an interest free credit card offer was 3%.  That made a 0% APR credit card offer (with an interest free period of 12 months) have an effective balance transfer APR of 3%.  However, if the 0% APR credit card offer only lasts 6months, the effective balance transfer interest rate doubles to 6%.  Recently, several credit card companies have increased the balance transfer fee to 4%.

So, keep that in mind when you evaluate multiple 0 interest credit card offers.

Also, even though there are still a few credit card issuers that cap their balance transfer fees at $50 to $75, many credit card companies are removing those caps.

How About An 0% APR Interest Rate On Purchases?

Many interest free credit card offers also have a 0% APR on purchases.  This is a significant benefit so long as the interest free term is the same as for the 0 APR balance transfer offer.  If the 0 interest APR expires before the 0% balance transfer offer period, do not use the card for purchases.

Remember, credit card issuers apply payments to pay down the balances with the lowest interest. If the interest free period expires prematurely, the purchases would accumulate at the standard purchase APR rate (which could be as high as 19.99% APR).  So, you would not even begin to pay down this balance until all of your 0% APR balance transfer was paid in full.

Does The Interest Free Credit Card Offer Extend To Cash Advances?

If your interest free credit card offer extends to balance transfers as well as direct deposits into your checking account, you have the option of using the 0 interest credit card for other things, including, but not limited to, paying down other unsecured personal loans.

When In Doubt, Be Able To Bail Out

Have an exit strategy in place before you take advantage of an interest free credit card offer in case you are unable to eliminate the balance before the end of the 0 APR period.  Otherwise, you could get stuck paying high interest rates on any outstanding credit debt balances.  This will quickly undermine the interest saved during the interest free credit card period.

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What Is The Expiration Date Of The Introductory Period?

Find out whether or not the introductory rate ends during a billing cycle.  If the rate ends within a billing cycle, you will need to actually pay off the credit card balance in the preceding month to avoid interest rate charges.  Look for the introductory rate expiration date in the credit card agreement or call the credit card company and ask.

What Is the Balance Transfer Fee?

With the recent changes in the credit card industry, balance transfers have begun to vary widely from the (once standard) 3.0%.

In fact some 0 balance transfer credit cards carry a 4-5% balance transfer fee.  This raises the “effective” interest rate considerably particularly if the fees are not capped at $50 to $75 as was once standard in the industry.

If you make multiple balance transfers, those fees can substantially undercut any savings that you realize from the 0% interest rate balance transfer.

What Is The APR On Convenience Check Balance Transfers?

While convenience checks can be a great way to access your 0% interest credit line, the terms for using them are often different from balance transfers by phone.  It is imperative that you carefully study the fine print on your 0 balance transfer offer.

Often, convenience checks are treated as cash advances and the 0% APR introductory rate may not apply.  Even if the rate does apply, the balance may be subject to a the (often very high) interest rate for cash advances after the introductory rate ends.

So, if this is the case, it is very important to be able to pay the entire balance by the end of the introductory period.

What Causes The 0 Balance Transfer Rate To End?

To win the 0 balance transfer credit card game, you must impeccable financial discipline.  If you make a mistake and default on any of the terms of the credit card agreement, it will usually trigger a large rate hike.  I have seen credit card agreements that punish a late payment with an penalty interest rate of 28%

Here are some of the common reasons that will trigger a default rate hike:

1. Failing to pay the minimum payment by the due date and time
2. Exceeding the credit limit on the account
3. Failing to have a check with your payment honored by your bank
4. Failing to make payments to another creditor on time, if the record of this shows up on your credit report.

How Does The Credit Card Company Apply My Payments?

Oftentimes, a consumer will accept a 0 balance transfer offer and consolidate their credit card debt onto the card.  Only later, does the consumer find out that the terms of the credit card agreement are such that all payments are applied to the 0% APR balance first.  The consumer is left saddled with a high interest balance at the end of the introductory period.

So is you take advantage of a 0% interest balance transfer, pay off any other outstanding balances on the card before making balance transfers.  Then use another credit card for new purchases.  Otherwise, be prepared to address a residual balance accumulating credit card interest at rates as high as 19.99%

Read The Fine Print In Order To Leverage A 0 Balance Transfer Credit Card

Take note of the introductory period and the balance transfer fees before you initiate the balance transfer.  Consider the implications of using convenience checks.  But most of all exercise the financial discipline to avoid triggering a ridiculously high default rate.

In short, exercise good judgment and sound financial discipline and you can leverage the power of a 0 balance transfer credit card.

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Do I Need A Credit Card Debt Consolidation Loan?

One of the main ways to begin get out of debt is to consolidate credit card debt in to a lower interest debt consolidation loan.  In order to determine whether or credit card debt consolidation would be right for you, consider these factors:

• Do you have multiple cards with long term outstanding balances?
• Do you frequently make the minimum payment on your cards?
• Is your credit debt increasing over time?
• Are you at or close to the limit on one, or more of your credit card accounts?

If any of these factors apply to your situation, you should consider a credit card debt consolidation loan.

How Do I Consolidate Credit Card Debt?

Consolidating credit card debt involves combining all of your outstanding credit card balances into one, lower interest loan.  Regardless of the type of credit card consolidation loan you use, your goal should be to lower your interest rate and monthly payment on the consolidated credit card loan balance.

The key to making a debt consolidation strategy work for you is to exercise the discipline to use the savings from the lower interest rate and monthly payment to pay more on the loan principal each month.  It also means looking for ways to decrease your other monthly expenses even where you are paying less to service your unsecured personal loan.  It is imperative that you live on a cash basis while repaying your credit debt  and avoid spending more money than you have.

Debt Consolidation Options For Those With Good Credit Scores

The best options for debt consolidation are available to those with excellent credit scores.  It is, therefore, imperative that, at the first sign of financial difficulty that you take steps to consolidate debt.  You cannot afford to wait until you have bad credit.

Here are some of the main options for consolidating your credit card debt:

• Transfer credit card balances to a lower interest credit card. These interest rates can run as low as 7.50% if you have very good credit.

• Use balance transfer checks to consolidate credit card balances. Even now, credit card issuers still mail out balance transfer checks offering a low interest rate for the life of the balance (some as low as 3.9 to 4.9 APR).  You will have to pay a balance transfer fee in the amount of 3-4%.  Even with the balance transfer fee, it still represents an excellent opportunity to consolidate credit card debt.

• Open a home equity line of credit (HELOC). If you own your home, you can take advantage of your home’s equity as a source of low interest lending.  Although it is not wise to make a habit of taking equity from an appreciating asset to pay for consumptive spending, you may have no choice but to do so.

• Negotiate with your credit card company. It is possible to use the current economic climate as leverage to negotiate balance transfers into one of your lower interest rate credit cards.

These credit card strategies are only available to consumers with good credit scores.  Consumers with bad debts or poor credit scores will have to explore other means to achieve their debt consolidation goals.  Even if you have bad credit, it makes no sense to procrastinate and do nothing.  As your credit debt begins to spiral out of control your efforts to consolidate your credit cards becomes more difficult.

What About A Non-Profit Debt Consolidation/Credit Counseling Company?

A good nonprofit credit counseling company can put together a debt consolidation program and can negotiate credit card debt relief plans for you.

To find a nonprofit credit counseling service, contact the National Foundation For Credit Counseling to find a list of reputable credit counseling and debt consolidation organizations available to you.  A good non-profit credit counseling company will often be able to get people out of debt easier than going it alone.

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While 0% APR credit card offers are getting harder to find, they can be a great way to consolidate debt and eliminate your outstanding balances – if used properly.  Here’s how….

Use 0% Credit Cards To Pay Off Existing Debt

Traditionally, there were two ways to consolidate your credit debt.  The first way was to get a debt consolidation loan.  The second way was to get a home equity line of credit (HELOC).

Honestly, most people never considered using a series of 0 APR credit cards to pay off the credit card debt with little interest.  In some instances, this may be the best option. If your credit is in good shape, a 0% credit card will allow you to payoff your credit card debt even quicker than a consolidation or home equity loan.  If you can secure a 0 interest credit card, you will be able to spend virtually all of your monthly payment eliminating principal instead of paying interest.

How To Use A 0% APR Credit Card To Eliminate Credit Card Debt

The process for using a 0 interest credit card to eliminate credit card debt is really straightforward.  Follow these steps:

1. Transfer your existing credit card balances to a 0% credit card.
2. Continue to pay down your balance as usual. But instead of paying just the minimum each month, add the amount of interest you saved and pay it as well.
3. Keep a careful eye on the introductory period.  One month before it expires, begin to shop around for a new interest free credit card offer and transfer your balance again.
4. Continue this cycle until you’re debt free.

Author’s Note: Be aware of these two traps when using this procedure.  First, with the recent changes in the credit card industry, you will find that you will incur a 3-4% balance transfer fee.  Second, transferring credit card balance repeatedly can slightly impact on your short term credit score.  But, in my opinion, this impact is greatly outweighed by the savings in interest.

0% APR Credit Cards vs. Debt Consolidation:

Still thinking about a credit card debt consolidation loan instead of a 0% credit card?

Well, let me wow and amaze you.

Let’s examine the details to see how much you can save, and how much quicker you can pay off your debt using the method shown above:

Assume you have an existing credit card debt of $15,000. You’d like to pay $250 per month until the debt is paid off. Your debt consolidation loan was approved at 7% which is quite a bit lower than that 16% APR credit card.  Congratulations on negotiating such a great deal!!  Let’s see how that works for you:

• Beginning Balance:        $15,000
• Total Amount Paid:        $18,516
• Total Payments Made:            75

Now let’s compare paying off this same debt using 0% APR credit cards.

• Beginning Balance:         $15,000
• Total Amount Paid:         $15,000
• Total Payments Made:            60

Your savings are $3,516 over sixty (60) months.  You will be debt free 15 months before your debt consolidation loan is paid off.

Using The 0% Credit Card Method:  Caveats And Cautions:

It is clear that consolidating credit card debt with a 0% APR credit card can be a real solid financial move.  However, you need to observe these cautions and precautions when using this strategy:

1. Do not switch credit cards more than necessary as it can negatively impact your credit report.
2. Search for the 0 interest credit cards that have the longest 0 APR periods
3. Check the APR on balances after the introductory period to make sure you aren’t hurt in the event you cannot continue to transfer the balances.
4. Do not continue to use the card after you pay it off.  But, do not close the account either.  Closing the account can adversely impact your credit score.  Just cut the card up and forget that it existed.
5. Do not overspend with your new credit card either even if you can make purchases at 0% APR.
6. Be sure to apply the money you save in interest (all of it!!!) to the payment as extra principal.  You will eliminate your debt much faster.

If you observe these tips and shop carefully, you may find that a 0% credit card strategy is a useful and lucrative alternative to consolidating your credit card debts with a traditional debt consolidation loan or home equity line of credit.

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