If you have a substantial debt balance from several credit cards, you should be thinking of switching to a 0 balance transfer credit card. With this card, you can transfer your balances from high interest credit cards to new card 0 interest. >
For example you have a balance of $ 1,000 at 17% interest per year. If you then move it to the card without interest, how much you could save? You can save $ 170. This money could be used to increase your principal debt payments.
So, the advantages of using 0 balance transfer credit card is quite significant. If your balance is greater, of course you can save more.
But the requirement is you must have excellent credit. If your credit is still low, you should improve it first. Or you ask for reduction of interest so that the burden of payment of your bill is reduced or lower than normal.
Four Tips of Choosing 0 Balance Transfer
There are several things you should consider when you want to apply for credit card 0 balance transfer. This is important so that you can actually pay off your debt. You can get a big profit, and not add new debt.
The first is a long period of 0 balance transfer card. If your balance is very large, you should choose a credit card with a long period, ie 15 months or 18 months. It will make you to have the long opportunity to pay off your debt.
Second is the fee, for example, annual fee, balance transfer fee, etc. You need to consider the costs you have to pay. You should choose a credit card with a low cost or no cost
.
The third is interest after the period 0 balance transfer is complete. Generally the interest rate is variable, depending on your credit score. If you have excellent credit, you will be charged the lowest rate, ie 10.99% or 11.99%. Variable interest rate is usually between 10% – 20%, 11% – 21%, and so on.
The fourth is the late payment cost. It’s also very important for you. If you want to be free of late fee, you should always pay your monthly bills on time. Do not be late, though only one time because you are charged $ 35 late fee and your credit score will drop dramatically.
In addition, late payment can cause you to lose the 0 balance transfer. It means you must pay interest on your unpaid balance.
You should use the automatic bill payment service, so you do not have to worry about paying late. Bank will cut your savings to pay bills when the time came.
However, you can get the credit card without late fee, but limited choice. More information about credit card 0 balance transfer, please feel free to visit here.