0% Intro Balance Transfer Fee: What You Need to Know
Are you tired of paying high interest rates on your credit card debt? Do you wish you could consolidate your debt and pay it off faster? A 0% intro balance transfer fee credit card may be the solution you're looking for.
What is a 0% Intro Balance Transfer Fee?
A 0% intro balance transfer fee is a promotion offered by some credit card issuers that allows you to transfer your existing credit card balance to a new credit card with a 0% interest rate for a limited time, usually between 6-18 months. During this period, you won't be charged any interest on your transferred balance, and you can focus on paying off the principal amount.
How Does it Work?
Here's an example of how a 0% intro balance transfer fee credit card works:
- You apply for a credit card with a 0% intro balance transfer fee promotion.
- You're approved and receive the new credit card.
- You transfer your existing credit card balance to the new credit card.
- You pay no interest on the transferred balance for the promotional period (e.g., 12 months).
- After the promotional period ends, the regular interest rate applies.
Benefits of a 0% Intro Balance Transfer Fee
A 0% intro balance transfer fee credit card can be a great way to save money and pay off debt faster. Here are some benefits:
- Save on interest: By paying no interest for a limited time, you can save money on interest charges and focus on paying off the principal amount.
- Consolidate debt: You can transfer multiple credit card balances to a single credit card, making it easier to manage your debt.
- Pay off debt faster: With no interest charges, you can pay off your debt faster and get back on track financially.
Things to Consider
While a 0% intro balance transfer fee credit card can be a great tool for paying off debt, there are some things to consider:
- Balance transfer fee: While the promotional period may have a 0% intro balance transfer fee, there may be a balance transfer fee (usually 3-5% of the transfer amount) applied to the transferred balance.
- Regular interest rate: After the promotional period ends, the regular interest rate will apply, which may be higher than your current credit card rate.
- Credit score: You'll need good credit to qualify for a 0% intro balance transfer fee credit card.
- Promotional period: Make sure you can pay off the transferred balance within the promotional period to avoid interest charges.
Best 0% Intro Balance Transfer Fee Credit Cards
Here are some of the best 0% intro balance transfer fee credit cards available:
- Citi Simplicity Card: 21-month 0% intro APR on balance transfers, with a balance transfer fee of 3% or $5, whichever is greater.
- Discover it Balance Transfer: 18-month 0% intro APR on balance transfers, with a balance transfer fee of 3% or $10, whichever is greater.
- Bank of America Cash Rewards credit card: 12-month 0% intro APR on balance transfers, with a balance transfer fee of 3% or $10, whichever is greater.
By understanding how a 0% intro balance transfer fee credit card works and considering the benefits and things to consider, you can make an informed decision and start paying off your debt faster.
