0 Balance Transfer

Balance Transfer Deals can be a great tool to lower your interest payments and used as part of a credit card debt strategy. However, there are things that you have to be aware of or you might trip. Below are a few tips to consider before you get one of these balance transfer deal cards.

Always Pay On Time – As part of the terms and conditions, credit card issuers reserve the right to increase your rates if you are late on one payment. Very often, the new rate could be over 20%. To make sure you take full advantage of the 0 balance transfer deal, PAY YOUR BILLS ON TIME.

Set Up Auto Payment – The best way to make sure you pay your bills on time is to set up auto payment whereby your credit card bills are paid from your bank account automatically. There are two ways to set it up. The first method is with your bank and the other way is with your credit card company. I would suggest setting it up with your credit card company because if anything goes wrong, you can point the finger at them.

Look out for any changes in grace period – If your credit card company decides to reduce their grace period for example from 25 days to 20 days, it may mean that you have to pay your bills sooner. If this happens, check that your autopay schedule is still good.

Be realistic – If you have a good credit score, chances are good that you can still get balance transfer deals for 12 months. But if your credit is not so good, be more realistic. You are probably better off getting a low rate deal for 6 months and getting approved, rather than attempting a 0% 12 month deal and getting turned down.

Transfer your balance only after you get approved and know your credit limits – Credit card issuers are so strict these days that you stand a better chance of getting approved if you do not submit your balance transfer request during the application process. It is better to know what credit limits you have been given and then transfer the balance.

Do charge other things on the card – If you use your card for 0 balance transfer, do not charge other things to the card. Your payments goes towards paying the 0 balance transfer and you will accumulate more credit card debt at a higher interest.

Final Thoughts – If you carry a credit card balance, you should always be looking for good balance transfer deals to reduce your monthly payments and help speed up your credit card debt reduction plans. Much has changed over the last year since the credit crisis. A year or two ago, every credit card issuer was falling over one another with 12 month 0 transfer balance deals with no balance transfer fees to get new customers. These days most impose a balance transfer fee (3%) with no caps. It is also getting difficult to get good 0 apr balance transfer deals. Still if it makes sense, this should not deter you. As a result of this development, we have listed cards for those with excellent credit, for those with good to excellent credit and for those with average to good credit. Some are not 0% deals, but if they save you money, you should look to transfer your balances.