0% balance transfer credit cards

Have you ever heard of 0% balance transfer credit cards? Simply, they are credit cards which can be applied for and, if approved, you can transfer all of your existing credit card debt on to the card and pay no interest on that amount for a certain time. You will often see this referred to as no APR or zero APR -- APR is annual percentage rate, or the amount of money you pay interest per year on a credit card balance. Very often these zero percent cards will give you 12-16 months of no interest charged.

The benefit of 0% balance transfer credit cards

The largest benefit of these types of credit cards is the money savings. Not simply in the lack of interest, but also in the ability to save money while paying off debt. Here’s how this can work: let’s say you have $4,000 of debt on one or more credit cards. If you get one of the 0% balance transfer credit cards, you can transfer that entire amount on to the credit card and now you don’t have to pay any interest on that balance.

This is a good time to make a serious attempt at paying off that debt because now you have no interest to pay. If your yearly interest was 15%, on $4,000 that would be and additional $600 dollars you would have to pay. Your total debt would actually be $4,600. But now with no interest charged, your debt is only that initial sum. If you pay it off within the time of no interest charged, you will have saved $600.

Who can apply for 0% balance transfer credit cards?

Anybody can apply for these 0% balance transfer credit cards. It is a great option for anybody who has a credit card balance which they are trying to pay off or down as quickly as possible. The savings associated with this benefit everybody, but by saving that additional dollar amount, your total debt will be paid off faster.

It is also a good way to consolidate some debt. If you have debt over two or more credit cards, you can transfer all of it on to one card. Since this card has no interest, not only is it easier to manage the debt, but it is also a chance to pay it off fast and save some money.