If you consider applying for a free credit card to transfer 0 balance, there are many factors to remember. While it may be attractive to mention a 0% interest rate, offering a lower rate should not be the only consideration. There are many factors that will affect whether it is really a good idea to transfer all your credit card balance to a new card. Taking into account other factors, you can make an informed decision about your credit card status.
What is the validity period of the 0% discount?
This is one of the key factors to remember. Only one credit card company offers 0% interest rate for balance transfer, so if the interest rate is only applicable to 3 months, accepting the interest rate may not be in line with your best profit. All details of the credit card quotation should be read to avoid low interest rates expiring in a short time. If you can only waive the interest for 3 to 6 months, it may not be advisable to replace the existing credit card balance with a new one. If your 0% interest rate matures, your interest rate will increase significantly. Then you’d better stick to the current credit card company.
Do you charge for your balance transfer?
This is another very important question to answer. For those who are inexperienced in balance transfer credit cards, the cost of transferring debt from one card to another may be a foreign concept. Although not all charge card companies charge the balance transfer fee, some companies charge this fee and call it different names. One company can call this a balance transfer fee, and another company can record it as an administrative fee. Just because you think you are registering a credit card that does not need to pay the balance transfer fee, if this fee is simply marked as other fees, you will still incur unexpected fees. Before receiving a new credit card, all commitments must be completed in writing, so as to avoid unexpected financial surprises.
What is the APR after the 0% grace period?
Before agreeing to accept a new credit card, please make sure what your interest rate will be after the grace period. The credit card promises not to accept the balance transfer fee and 0% initial interest rate. Some credit card companies will offer interest rates as low as 12.9%. The interest rate in other countries may be as high as 24.9%. If the interest rate gap is so wide, it may be a difficult decision to decide to use the 0% interest rate. At the beginning, the current credit card is You may fall into the temptation of not paying debt interest, but when you suddenly need to pay a higher interest rate, your attraction to the new card will begin to diminish. If you know what your final interest rate is before you register the new card, You can make wise decisions to meet current and future needs.
Is APR guaranteed?
After the 0% discount, if you know what the interest rate is, you can know the applicability of the new year’s interest rate to the account. If the interest rate rises from 0% to 12.9~24.9% within a year, you should consider this information before completing the balance transfer. By mastering appropriate knowledge in advance, you can make long-term acceptable financial decisions. . Some people may mistakenly believe that the new non promotional interest rate is guaranteed for one year, but it is not. It is easier to accept or reject the 0% interest rate card by asking the right questions in advance.
These are just a few factors that you should pay attention to when considering the free credit card with zero balance transfer. If you fully understand in advance, it is a wise decision to charge 0% interest. By paying attention and conducting some research, your financial prospects will be brighter. Because you care about details.
