If you do you might find - without warning - that your zero percent no longer applies and you're paying more in interest than you were before.
Balance transfer fees
These lenders actually feel safe in assuming that most people transferring balances won't pay attention to the potentially costly details that accompany the offer.
Next billing cycle you get your statement and find that the $200 in new purchases is still there - plus the couple of new charges you made since then. While there might be low or no interest on balance transfers, you're still getting a new credit card which means you'll still be able to use it to make purchases. For more information please visit 0 interest credit cards
Interest rate after intro rate expires
4. By setting up automatic debits from the bank, it is possible to make the payments on time without any delay in payments. Other interest rates
Say you transferred $1,000 and during the last month you made new purchases totaling $200. If the balance transfer fee ends up being more than you would have paid in interest had you not done the transfer, then don't transfer!
Before taking advantage of an offer, always do the math. What a lot of people don't realize is that the lender making such an unbelievable offer wouldn't be doing so if there wasn't some way to benefit financially. 1. Avoid those without caps. Maybe 3% doesn't sound like much but if you're transferring several thousands of dollars, that fee can be hundreds of dollars!
2. But it certainly is on those new purchases!
To keep this from happening - which negates any savings benefits you've reaped so far - make sure you have a plan for paying off whatever balance you transfer before the rate increases.
That's because any balance remaining afterwards is likely to be whacked with a much higher rate. Purchases though, normally aren't part of the no or low interest deal. You make a payment of $300 thinking you'll clear away the new charges and start chipping away at the balance transfer amount.
The first thing to do to lower the cost of credit card is to opt for a company and a card that promotes low interest credit cards. Rare is the balance transfer offer that doesn't come with some sort of balance transfer fee. It might be a flat rate like $50 or $75 but it's usually a percentage of the total amount of each balance transferred.