A 0% Balance Transfer Credit Card usually refers to credit cards that offers a new user or new cardholder a 0% rate of interest for the first six to a year after first using the card. Generally, the 0% interest rate is a "teaser" rate that's used to persuade people to use or avail a particular credit card. This comes after credit cards holder transfers balances from one or more unpaid credit cards to the present card. Then the creditor has to cover those debts using the new greeting card. Issuers like banks, generally charge balance transfer fees to reimburse the expense they incurred in handling the transfer of the unpaid debt to the present credit card account. To take advantage of the 0% interest rate that this kind of credit greeting card offers, a cardholder must try in order to transfer debt balances to his present card, then paying for them as soon as possible. Issuers of this type of greeting card typically offer 0% interest rates on periodical payments for approximat
ely twelve months after first using this charge card. Things to Take Note Of: Applicants for balance transfer cards should observe the following facts regarding this kind of credit card: 1. Some card issuers disallow the move of debt balances from high interest accounts to this kind of card during the introductory 0% rate of interest offer period. 2. A handful of issuers of this particular card charge high balance transfer fees that cost around $50. 3. If you incur a late payment for a single payment period, several issuers automatically charge cardholders with high penalties. What's worse, they could immediately revoke the 0% rate of interest privilege and change your card to a variable apr (APR) card just for one past due payment. 4. Issuers may charge the charge card holder very high interest rates following the introductory offer period expires. How to be a Responsible Stability Transfer Card HolderIf you want to make use of the short-term introductory benefits of a 0% i
nterest balance transfer charge card, take note these simple tips: 1. Do not apply for this card if you will transfer small amounts or a zero balance debt for any previous account. 2. Make sure you choose a borrowing limit that suits your needs and simultaneously complements your current financial status. The issuer conducts credit investigations to find out your ability to pay and the credit limit that you could handle. 3. Understand the long-term information on credit. Make sure that you are designed for the interest rate and rigidity from the payment scheme after the introductory 0% rate of interest period. 4. Quickly pay for the balances throughout the introductory 0% interest period. If you will take advantage of the 0% rate of interest, make sure that you can purchase the balances during the introductory time period. This is especially needed whenever credit cards holder transfers a balance from the previously high interest card. 5. Do not transfer large balances to yo
ur 0% credit card if you fail to pay for them before the finish of introductory period. Failure to pay for the balance would lead to the cardholder having a much larger amount to cover compared to the original balance he desired to eliminate. Make sure you understand the costs you'll have to incur and deal with using your 0% balance transfer credit card. Read the fine print in the card's credit terms to ensure you will not get into monetary trouble.
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