The Christmas Holiday Season brings retailers 25% and more of their yearly
sales. It's safe to assume the month of January most likely shows the highest
consumer credit card balances. As impulse buying often times is the culprit
in charging more than we planned, it's easy to see how one could get carried
away during the 'season of giving.'
Now it's January and those bills have started coming in. Two or more credit
cards with high balances can take a bite out of your budget. The easiest solution
for many consumers is to apply for one of the many 0% APR introductory credit
cards with balance transfer options. This could lower their payment by consolidating
their bills and at 0% interest to boot!
When you're looking into all the offers of 0% Introductory credit cards that
allow you to transfer the balance from other cards, you need to compare offers
carefully. Be sure you read the fine print. We often times get into the habit
of getting excited with the hype and fail to read the details.
When you're considering a new 0% APR credit card, look into how long the introductory
period is. It varies from card to card. It can be six months or twelve months
with some newer offers up to eighteen months. How long is it going to take you
to pay the balance down to where you're comfortable with it?
Then there's the issue of the balance transfer. Is there a fee for the balance
transfer? Some cards do not charge a fee to transfer and others charge as much
as 3%.
The 0% offers usually apply towards any amount you transfer over from other
cards; but, does it apply to new purchases? This feature also varies. Sometimes
it's just the 'balance transfer' amount and other times it includes 'new purchases'
as well.
Another thing consumers should be concerned with when applying for a 0% APR
introductory offer with a balance transfer feature, is what is the interest
rate after the introductory period is over? This really can vary by several
percentage points. Is it comparable to the competitors?
Last but not least, individuals need to be aware that if they should become
delinquent prior to when the twelve month period is over, that 0% APR is gone.
The offerers can now charge as much as 32% in some instances when your account
is not kept up with the terms of the card. This could put quite a dent in the
balance owing and the monthly payment as well.
The 0% APR introductory offer can be a great help to your financial situation.
Just be sure to read the fine print. Know that you will be able to keep the
terms and that the additional features of the card, including rewards offered,
is what you're looking for.