The amount of interest you pay each month on your credit cards can be a large amount, especially if you don’t pay it off regularly. So having an interest free balance transfer credit card can really take the sting out of your monthly bills. There are quite a few different options to choose from and they all have their own benefits.
The interest free period when transferring your balance is obviously the most important benefit. All will have a limited time that no interest will be charged for. But then of course that period will end and you will pay the monthly interest again. So during this period you should start to pay off as much as you can to bring down your balance, thus paying less interest each month. Paying off the minimum amount each month will just lead to you wasting your money as the balance will never come down.
Here are some things to look out for when choosing an interest free balance transfer credit card:
0% Interest on Purchases: A lot of cards will allow you a certain period of time to make purchases without paying interest on them. Just be sure you can pay off the balance before the interest starts. This is a good benefit so long as you pay off the balance quickly.
Zero Percent Balance Transfer: These types of cards will let you transfer your balance from your current card to a new one. The new one won’t charge you any interest for a set period of time. If you use this time to pay off as much of your balance as you can, this is a great way to get your finances in check. All interest you pay is basically just wasting money. So try to use every option available to pay off your credit card balances as fast as you can.
So as you can see, an interest free balance transfer credit card is a great option as long as you use the money wisely. If you don’t then you’ll just end up in the same position as you were originally.