Many major credit card issuers are currently running special promotions offering 0% introductory APR on balance transfers to new customers.
These introductory periods range from six to nine months and sometimes even longer. Some issuers are offering 0% Intro APR for up to 12 months, which means if you pay off your entire balance within that period of time, your cost of borrowing is ZERO.
By taking advantage of the current money market, you can save on interest, as well as have the convenience of paying your balances over time without worrying about high interest charges inflating your outstanding card balances.
Some credit card issuers do however charge a balance transfer fee, which may affect your overall balance transfer savings.
If you decide to take advantage of the Intro APR offer, remember to make at least the minimum monthly payment on time. One missed payment may be enough to lose the Intro APR. If you find yourself in this situation, contact the customer service representative and explain what happened. In most cases, if you have a good payment history, the issuer will restore your Intro APR and may even credit back your late fee, if one was levied on your account.
The key to good personal money management skills is taking financial opportunities when they are offered; 0% APR on balance transfer is one way to consume now and pay later at the card issuer’s expense.
Always read card terms and conditions before you transfer a balance or apply for a new card, and use credit responsibly.
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