If you want to pay off your credit card debt and pay absolutely no interest rate, your dreams may come true if you apply for best credit cards - 0% interest rate for balance transfers plastics. A large number of credit card companies attract new customers with these special cards. They know that hundreds of credit card users will be more than happy to transfer their debt to these plastics. But are these plastics really so good or it is just a wise advertisement trick? Will you really pay off the debt you have with 0% interest rate?
Whenever you get credit card application even for top credit cards that may sound like the best deals you can imagine, you should read the fine print attentively. A 0% rate card offer is only good during the introductory period, which is usually from 6 to 12 months. But remember that balance transfers for bad credit are issued for those people, who have thousands of dollars in debt. After the introductory period is over, your interest rate will sky rocket and credit card companies count that you will still have the balance and will have to pay interest for it!
Unfortunately, many people don't check how much they are going to pay in interest after the introductory period and that is their biggest mistake! If the interest rate on your current credit card is 10% and you have transferred your debt to the plastic that has 19% in interest, then it is not beneficial for you unless you are completely sure that you are going to pay off your debt during the introductory period.
Another factor that you have to take into consideration is that most of these plastic charge a fee for balance transfers. The fee depends on the amount of money that you transfer and can vary from 1% to 5%. Sometimes this fee can go up and will cost you even more than you would have paid in interest!
In order to get a really good deal you have to do some math and find out exactly how much you are going to pay taking into consideration a balance transfer fee and the amount of interest you are going to pay after the promotional offer ends.
0% interest rate credit cards are good only in case you make all your payments on time! Even if you are late on a few days with your payment, you can loose your 0% interest and will pay a significantly higher interest rate!
If you don't want to spend a fortune on balance transfer fees, you can find a credit card with fixed interest on balance transfers. Then you will be able to save quite a lot of money! Remember that Visa and American Express do their best to attract you, but you have to be wise enough to check out all the details.
