0 APR On Balance Transfers Give Great Value To You

2007-03-08 10:33:40

( Financial )



Balance transfer cards are potent weapons in the marketing arsenals of credit card issuers, designed to attract you to join their roster. You probably have received brochures inviting you to transfer cards, via Citibank balance transfer, MBNA balance transfer, Visa balance transfer, and the like. The main come-on offered is 0 apr on balance transfers.

You may be wondering what balance transfer cards are all about. The card companies are simply asking you to transfer your account to them. They encourage you to do that with low introductory rates, particularly 0 apr on balance transfers.

You may get two types of balance transfer card offers. The most common type is 0 apr on balance transfers. You normally have between six to nine months to enjoy this offer. After the introductory period, your rate will revert to the standard rate, usually around 15 apr. The big advantage to you is the 0 apr on balance transfers during the introductory period: it gives you a low-cost unsecured loan to clear existing high-cost debt.

If you have the zest for it, you can transfer cards balances from one company to another, stay during the introductory period to enjoy the 0 apr on balance transfers rate, then move to another company when the introductory period expires. You can do this until you pay off your debt.

But that requires your attention to transfer cards after every few months. If you don’t feel comfortable about doing that, you can opt for the other type of balance transfer card offer, the long term balance transfer card rate. You are given the low balance transfer card rate not for a few months but for the life of the card. The rate is higher, however, at about one-third of the standard rate, applied to the balance transferred until it is paid off. However, any new spending will be charged the standard rate.


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