I have never heard of a card that is 0% on balance transfers and new purchases. This is a good thing to help people out of debt if they don’t abuse it. Unfortunately, it could also be a real problem for someone who has trouble controlling their spending.
JenniferSeptember 27, 2009 at 8:49 am
I love the idea of this — in theory. It seems like a great idea to transfer credit card debt to a new low, or 0% APR card, but I’ve also seen so many people think they can just leave it there and never pay on it, like it’s a long term solution and now they have no debt, that I’m wary of even putting out there that this is an option. I know, everyone should know all their options and make the decisions for themselves, but I wish more people would plan things out long term.
JamesMarch 21, 2010 at 4:52 pm
Great article! I never knew that no interest balance transfer deals existed. One question though — do they determine your normal APR as soon as the account is opened, or after the promotional period? In other words do they determine the APR based on how much payment you sent during the promo period? Any negative effect just paying the minimum each month?
@James,
Thanks for your question! Actually, the credit card company, bank or issuer will assess your regular APR (which you’ll receive after the intro period) based on your credit report, credit score and overall relationship with them. So it DOES pay to maintain a good relationship with your card company. Paying only the minimum will be more expensive for you in the end, so I can’t recommend this approach in good conscience. In fact, I recommend that you always try to pay more than the minimum per month (I personally pay off my cards in full each month and don’t carry a credit card balance). Bottom line is that by being a good customer with a good payment record (no late payments, no skipped or missing payments), you’ll garner the best rates for your credit card.
One more thing to note: credit card companies are much more careful about whom they accept as customers these days. They’ll check your credit history and only those who are deemed credit-worthy will be able to qualify for top rated cards. The credit climate is a lot different now than it used to be some years ago when anyone with a pulse could receive a card (or was aggressively pursued by a card company).
LowellApril 29, 2010 at 6:37 am
Looking for a zero % credit card on balance tranfers for the life of the card. What I mean is that I want to transfer the balance fronm one to the zero card and NEVER pay any interest charges as long as I don’t purchase anything with it. Do they exist?
@Lowell,
As far as I know there are no longer lifetime balance transfer cards. In the past, before the credit industry suffered the crisis, this was a product that still existed. Unfortunately, there are no longer cards like this due to tighter standards in the credit industry. Also, to qualify for the longer term balance transfer cards, you’ll need really good credit.
CharlesJanuary 24, 2011 at 11:06 am
I can’t imagine seeing a lifetime balance transfer card with all the new regulation and reduction in revenue for the credit card issuers. Amex just did some layoffs, etc. 0% balance transfer is already a great luxury, people should enjoy it while they can.
Cary OwenFebruary 3, 2012 at 1:04 pm
I am interested in applying for a low interest rate credit card so can I request a balance transfer?
{ 8 comments… read them below or add one }
I have never heard of a card that is 0% on balance transfers and new purchases. This is a good thing to help people out of debt if they don’t abuse it. Unfortunately, it could also be a real problem for someone who has trouble controlling their spending.
I love the idea of this — in theory. It seems like a great idea to transfer credit card debt to a new low, or 0% APR card, but I’ve also seen so many people think they can just leave it there and never pay on it, like it’s a long term solution and now they have no debt, that I’m wary of even putting out there that this is an option. I know, everyone should know all their options and make the decisions for themselves, but I wish more people would plan things out long term.
Great article! I never knew that no interest balance transfer deals existed. One question though — do they determine your normal APR as soon as the account is opened, or after the promotional period? In other words do they determine the APR based on how much payment you sent during the promo period? Any negative effect just paying the minimum each month?
@James,
Thanks for your question! Actually, the credit card company, bank or issuer will assess your regular APR (which you’ll receive after the intro period) based on your credit report, credit score and overall relationship with them. So it DOES pay to maintain a good relationship with your card company. Paying only the minimum will be more expensive for you in the end, so I can’t recommend this approach in good conscience. In fact, I recommend that you always try to pay more than the minimum per month (I personally pay off my cards in full each month and don’t carry a credit card balance). Bottom line is that by being a good customer with a good payment record (no late payments, no skipped or missing payments), you’ll garner the best rates for your credit card.
One more thing to note: credit card companies are much more careful about whom they accept as customers these days. They’ll check your credit history and only those who are deemed credit-worthy will be able to qualify for top rated cards. The credit climate is a lot different now than it used to be some years ago when anyone with a pulse could receive a card (or was aggressively pursued by a card company).
Looking for a zero % credit card on balance tranfers for the life of the card. What I mean is that I want to transfer the balance fronm one to the zero card and NEVER pay any interest charges as long as I don’t purchase anything with it. Do they exist?
@Lowell,
As far as I know there are no longer lifetime balance transfer cards. In the past, before the credit industry suffered the crisis, this was a product that still existed. Unfortunately, there are no longer cards like this due to tighter standards in the credit industry. Also, to qualify for the longer term balance transfer cards, you’ll need really good credit.
I can’t imagine seeing a lifetime balance transfer card with all the new regulation and reduction in revenue for the credit card issuers. Amex just did some layoffs, etc. 0% balance transfer is already a great luxury, people should enjoy it while they can.
I am interested in applying for a low interest rate credit card so can I request a balance transfer?