0% balance transfer credit cards – the facts
Saturday, January 7th, 2012The 0% balance transfer credit card is designed for those with existing credit card balances on which they are being charged high rates of interest. These cards enable borrowers to transfer these existing balances, thus benefiting from having just one credit card debt to deal with and more importantly avoiding interest charges on the balance for a specified period of time.
You should bear in mind that most 0% balance transfer credit card providers do charge a transfer fee, and the average fee is around 2.5% of the balance being transferred, often with a minimum charge in place. You will have a limited time within which you will have to transfer your balance, and once you have done this you will be able to enjoy a specified period of time within which to repay the balance without incurring any interest charges.
You should make sure that you avoid making purchases on a 0% balance transfer card, as not only will you be charged interest on purchases unless otherwise specified but your purchase balance will get trapped behind the transferred balance, where it will continue to accrue interest at a high rate.