How to Maximize Using of 0 Balance Transfer

The offer to transfer balances to 0% interest credit card is very interesting and glad to be welcomed. Especially if you now have substantial balances with high interest. Transfering balance to interest free credit card will reduce the burden of bill payment.

You can save hundreds, even thousands of dollars a year. It depends on the amount of your balance and the amount of interest you pay.

But before you apply for 0% APR credit card, you need to select the most profitable cards. The goal is that you can maximize the use of interest free credit card so you really can achieve most benefits. For example you want to pay off all or part of your outstanding balance.

Factors You Should Consider to 0 Balance Transfer

There are several factors you should consider when choosing a credit card where you want to apply for. For example, about the period of 0% interest card, transfer fee, annual fee, interest rate after the 0% interest period is complete, and so on.

Long period of the card: The highest bid of interest free credit card now is for 18 months. There are 15 months, 12 months, and so on. If your balance is substantial, you should choose a card for 15 months or 18 months. With the period, you have the time to pay off your balance. Because of the large balances, repayment of course take longer.

Transfer Costs: How much should you pay transfer? All banks charge 3% transfer fee for the period of low interest and 5% after that. Only Slate from Chase that is the 0 balance transfer no fee. Befor there are some who no transfer fee, but began in March 2012 to live Slate.

But it only applies 30 days after you open accounts in Slate. So, if you choose Slate, you must immediately transfer the balance. Therefore how long periode 0% interest in Slate, you need to consider.

Bill Pay On Time: This is the most important factor. You have to pay monthly bills on time. Never too late. The late payment will affects greatly on your credit score. That is about 35%.

In addition, you must pay $ 35 of late fee. You can also lose the 0% interest. It means you have to pay a higher interest rate (regular) for your balance.

Of course, you should not use this card for purchases. It will only add to your outstanding balance. It means adding to the burden of bill payment.