Credit Card Articles

Whether you are paying a 10% interest rate or 20% interest rate, a 0% balance transfer can save you hundreds of dollars a year in interest. For example, a person with only $2000 in debt on a credit card with a 12% interest rate will spend close to $250 on interest this year. That’s a fairly sizable price for what many consider a small amount of credit card.

In this article, we will explore the simple process of doing an online balance transfer and examine the potential savings.

Step 1 Visit a credit card comparison site to find a credit card that charges a 0% APR on balance transfers for one year. This part shouldn’t be too difficult, as many credit cards provide these offers. (Keep in mind, however, that you can’t transfer a balance to a new card from the same issuer. Thus, if your debt is with one bank, you must transfer it to a different bank. This does not mean you can’t transfer a balance from one Visa to another. The Visa must simply be issued by a different bank.)

Step 2 Before you apply, closely review the credit card’s terms and conditions. Some credit cards advertise a 0% APR for 1 year, but upon closer look, reserve the right to only offer the 0% rate for 3 to 6 months.

Step 3 Once you’ve determined that the length of the balance transfer is 1 year, take a look at the interest rate offered at the end of the introductory period. Try to find a credit card with a low long term APR. However, if you do not repay your balance in full by the end of the 0% period, you can always look into transferring your balance again.

Step 4 Now that you’ve found the right credit card, complete the online application and submit your balance transfer information online. This will expedite the process of moving your balance from the high interest credit card to the one with the 0% APR.