* You should only use balance transfer credit cards if you know you can pay off the entire
balance during the promotional period.
These cards typically offer 0 % APR for anywhere from six to 21 months, making it easier for cardholders to pay off debt — since every dollar they pay goes toward the principal of
the balance during that promotional period.
Not exact matches
When you complete a
balance transfer, your minimum monthly payment will reduce
during the
promotional period.
If you find yourself, from time to time, unable to pay off a credit card
balance in full, you may be interested in a credit card that assesses low interest in the long - term, not just
during a
promotional period.
When you complete a
balance transfer, your minimum monthly payment will reduce
during the
promotional period.
These are usually several points higher than those for purchases or
balance transfers although at times
during promotional periods there is an introductory rate lower than than the regular rates for the two.
During the
promotional period, the regular annual interest rate for purchases will apply to purchase transactions and the regular annual interest rate for cash advances will apply to
balance transfer (s) that do not qualify for the
promotional interest rate.
If you do not pay your minimum payment by the payment due date in any month
during the
promotional period, you will lose the benefit of this
promotional interest rate offer and, effective the first day of the next monthly statement
period, the regular annual interest rate for cash advances will apply to any remaining
balance transfer amounts.
Assuming that you aggressively pay off the credit card debt and do not get into any new credit card debt
during this
promotional period then the
balance transfer option can potentially save you a lot of money.
Additionally, credit card
balance transfers only make sense if you can pay off all or most of the debt
during the
promotional rate
period.
When you transfer your existing
balances to one of these new cards, you can avoid interest charges
during the
promotional financing
period.
This means you can use your card to purchase from Walmart and then pay your
balance down without any added interest
during the
promotional period.
Transfer that
balance over to a 0 % card, and pay off as much as you can
during the
promotional period.
Some cards do offer 0 %
promotional periods on purchases and
balance transfers, so this is something to keep in mind
during your comparison.
First, there may be transfer fees (usually the greater of $ 5 or 3 %), even when transferring
balances during the 0 %
promotional period.
Balance transfer cards work as follows: they have a
promotional period during which you'll get a 0 % or very low rate for a certain number of months, but once that
period is over, rates are adjusted to much higher levels (perhaps to undesirable levels).
These credit cards offer a
promotional period (usually 12 to 24 months)
during which interest isn't charged on the account's
balance.
So if you don't pay off the debt
during the
promotional period, you may end up with almost the same amount of debt at the same rate that you had before transferring your
balance over.
A 0 % introductory APR
period: This lets you avoid interest on purchases or
balance transfers
during a
promotional period.
Debt consolidation may be done in two basic ways: the debtor may walk down the avenue for a credit card that has 0 % interest or a
balance - transfer to which all your debts may be transferred and the
balance paid in full
during the pre-determined
promotional period.
You will have to pay interest once the
promotional period is over, but you do not have to pay back interest on the
balance you carried
during those 21 months.
This means you can use your card to purchase from Walmart and then pay your
balance down without any added interest
during the
promotional period.
Because the APR for the Lowe's Credit Card is 24.99 % versus the lowest APR on the Discover it ® at 11.24 % and Chase Freedom ® at 14.24 %, it's especially important to consider whether or not you will be able to pay your
balance off in full
during the
promotional period.
However, be wary of the card's special financing deals — while they might come in handy on those big - ticket buys, they actually include what's called deferred interest, which means interest accrues
during the
promotional period and is applied to your account if you don't pay your entire
balance by the end of the term.
The former is considered true no - interest financing — in which no interest accrues
during the
promotional period, so long as you make minimum monthly payments — while the latter denotes a deferred - interest deal, which means interest is retroactively applied from the date of purchase if you don't pay your entire
balance by the end of the term.
(Keep in mind, though, that interest accrues
during that time and will be charged to your account from the date of purchase if the
balance isn't paid in full by the end of the
promotional period.)