| The Magic of Zero Percent Credit Cards
to Transfer Your Balance
Don't be surprised to see a lot of offers for zero percent credit cards for
balance transfers. The demand for such credit card products are on the rise.
That is not surprising since many consumers are now more aware about the
benefits of using those instead of the regular credit card products.
You may also be finally considering applying for one.
Credit cards with balance transfer features
are great for people who aim to lower their monthly expenses. You could use one to free up more cash and at the same time
lower your costs of using plastic cards.
You may choose between zero percent credit cards for balance transferring
(which have such rates for a specific or limited period) and those with much lower rates compared to other cards.
However, zero percent credit cards are very rare. Those that are readily available are offering the waived interest rates
only for a specified timeframe. Beware because most of the time, those offers come with much higher rates after the specified time
for zero percent interest lapses.
Meanwhile, the advantages of owning and using such cards could still be highly attractive to you.
The following benefits could be among the best and most timely reasons why you should finally
apply for a zero percent credit card.
Lower interest rates
Of course, the main benefit of balance transfer credit cards is the much lower interest rate compared to other credit cards and even loan products.
If you could trim down the rates, you could actually and logically reduce the minimum monthly payment you make.
This way, you could also find it much easier to pay off your total balances sooner.
As mentioned, be cautious of the balance transfer credit card you choose. It could offer a so-called ‘honeymoon rate’ for
a specific or limited period. After that time has lapsed, you may expect it to implement regular or even much higher interest rates.
If you could repay the amount you used up before the lapse of that period, it would definitely be more ideal.
Everyone could agree that it is much better to keep a single debt than to have numerous debts. You may finally repay all your other
credit card balances on your multiple credit cards and have the total amount transferred to a single card instead.
This is the wonder of low-rate balance transfer or zero percent credit cards for debt consolidation.
By doing so, you could actually enjoy two major advantages.
First, you could lower the total interest rate you shoulder. Second, you could avoid any possible risk of forgetting
to repay a credit card due, which may lead to penalties and other additional charges, making your credit card debt grow unnecessarily further.
Credit report improvement
Are you anxious about improving your credit card score? You should not remain complacent if you have too many
credit card debts. It may already not reflect well on your credit scores. Why not transfer all the balances into a zero percent
or low-rate balance transfer credit card?
You could actually generate positive scores if you transfer balances on your other credit cards into a single credit card. That is because credit rating agencies would see it as a good indication of your ability or capacity to repay and assume debts.
At the same time, you may effectively avoid incurring negative scores if you ever miss on any credit card payment, an occurrence you could avoid by using the balance transfer feature.