Requirements for 0 Balance Transfer Credit Cards (No Fee)

1. The person should have a good credit history. Presently, companies do not offer credit cards having 0% APR and no fees. Still, there are credit cards with low APR and no fees. You may need to get help with debt management and fix your credit score first if you have a bad credit rating.

2. Comparison should be made between cards offering 0% APR for a longer duration of time and cards offering low APR without any fees. The card that would lead to saving a good amount of money should be selected.

3. There is a Master Card called Bryant State Bank that offers 3.25 APR for the period of 6 months. The card does not charge any fee. The person interested in taking this card should know that they are supposed to make their payments within 6 months.

4. Not many balance transfer credit cards are there that capture the interest of the consumers. The main purpose of the balance transfer credit cards having no fees is pure business with the consumers. Capital One also offers credit cards having low APR and no fees. Before considering the offer, people should take note of the rate of interest charged after the expiry of introductory period and the conditions that would lead to late payment fees.

5. If there is no saving of money on taking a credit card having no fee and not so attractive APR then considering balance transfer credit cards with low fees is a better option.

A Word of Caution

People should read all the terms and conditions carefully before dealing with any credit card company. They should also see that they are being offered the same APR as claimed by the company.

One way of saving money is by spending less on items that you don’t need. Another is to look for ways of making more money by working part time or by filling out paid online surveys. You can also save a lot if you will adjust your lifestyle to suit your spending capability.

Additionally, reuse items, keep your car as long as possible and wear your clothes longer to be able to save on shopping expenses. Instead of dining out, you can cut down your food costs by cooking at home regularly for the family. When buying drugs, you should look for generics whenever possible. Check the price first before buying anything that is expensive to learn whether it is within your budget.

It’s not easy to save money especially if you are used to spending too much. You need to summon courage and self-discipline to be able to successfully do it. Therefore, the effectiveness of the ways to save money largely depends on the individual and his/her determination to follow them religiously.
Solving money problems is not easy, but if you will be diligent then you can successfully overcome them. To assist you in your goal, here are some techniques you can apply.

Organizing your finances can help you a lot if you want to determine the money you owe and to find ways of paying off such debts. Another is to put emphasis on bill payments as paying later than the deadline will mean additional cost because you are required to pay for the interest. Set your own financial goals and make sure that you achieve them no matter the cost.

There are qualifications that have to be met in order to obtain a debt consolidation loan and they can vary from lender to lender. In general, there has to be a valued item placed as collateral which is what the lender has a right to take if the loan is not repaid. The most common form of collateral is real estate because it is usually the most valuable possession owned. Since most people obtain loans, mortgages, to buy real estate, the new loan has to be large enough to pay the original mortgage AND the other debts to be consolidated. Lenders have various criteria to determine the worthiness of the property and borrower for such a loan.

It is also important for the borrower to evaluate the lenders. The purpose of the debt elimination option is to be able to pay the debt off sooner by lowering the interest rate and minimum monthly payments. The borrower should shop around for the best interest rate as well as the lowest up-front fees. Up-front fees, commonly called closing costs, include fees paid to the lender and any other vendors involved in the process such as land title companies and appraisers. These fees may be included in the loan or requested as a separate payment before the finalizing of the loan. All of these factors need to be considered while keeping an eye on the bottom line which is the monthly payment. Add each monthly payment for the debts to be consolidated and compare that sum with the monthly payment for the new loan. If the new payment is not lower, keep shopping for a better lender or loan. Beware of the new lender trying to make you borrow more than you need. Keep the loan as small as possible to eliminate your total debt.

Intro APR - If you look up at the URL, you might guess that every card that I mention on this site will have an Introductory Annual Percentage Rate (Intro APR) of 0%.  This means that if you qualify for a zero percent credit card, for a predetermined period of time, whether it be three, six or 9 months, any charges that you make to that card will be interest-free.

Intro Period - This is the amount of time that the Intro APR holds true.  As previously mentioned, most credit cards of this nature will fall into the 3-9 month range.  Once the period is up, your rate shifts to…

Ongoing APR - The interest rate charged after the introductory period.  Zero percent credit cards won’t always live up to their namesake – this is an extremely important factor to consider.  There will be a set minimum, usually somewhere around 12%.  Depending on your credit score, you may be paying a lot higher.

Default APR - This is any rate that you are charged outside of your ongoing interest.  If you fail to make a minimum monthly payment, or go over your allowed credit limit, this sucker will kick in.  You’ll find that most companies will charge you nearly the max allowed by law – typically in the 30% range.  Pay your balance, people – this applies to all credit cards!

Rewards - This should be pretty self-explanatory, but rewards are any favorable returns you receive for spending with your charge card.  They can come in the form of cashback, gift certificates, frequent flier miles, gas discounts…the list goes on, and depending on what rewards you’d prefer, some options will suit you better than others.

Transfer Fee Rate - This applies to 0% balance transfer cards.  When you want to transfer what you owe from one card to another, they aren’t going to let you do it for free – at least not at 0% for 12 months.  They’re going to charge you a percentage of the balance.  3% is a reasonable rate.  You’ll also want to mind the minimum and maximum fees; many card companies won’t allow you to transfer a balance that pays them less than five dollars (you’re not worth their time).  On the flip, you’ll want to look for caps on fees as well – if you’re carrying a large sum of debt, you may be paying a wicked transfer fee.

Ok, so now you’re hopefully a little more familiar with what to look for when choosing a 0% credit card.  Go out there and choose wisely!

So, we’ve established that the wonder rate won’t last forever – that’s ok – a lot of you won’t even qualify in the first place.  “Whoa!”, you say, “My credit score is pretty good, buddy”.  That’s great – you should go buy a house!  However, just having a “pretty good” credit score isn’t going to qualify you for zero percent credit cards.  You need an excellent score – we’re talking 720+ range – anyone who approves you with a score lower than that has something up their sleeve.

If you want to avoid denial, there’s another important factor to consider – whether or not you’re a “card hopper”.  If you bounce from company-to-company with no longevity, it’s going to stick out like a whore in church during the approval (denial) process.  It’s one of the first factors credit companies look for?  If you qualify for a credit card that offers a 0% introductory rate, you’re most likely already in the habit of sticking to a prompt payment schedule.  Regardless of what type of interest free plan you go with, it will be to your benefit that you continue to pay on time.

There’s more than one type of plan?  Correct – there are two types of these credit cards.  Although on occasion, you’ll find one that offers the same rate in both categories (not always as nice as it sounds), they typically fall into either the category of balance transfer or purchasing cards:

0% Balance Transfer

A balance transfer is exactly what it sounds like.  It’s when you transfer the balance on an existing line of credit to a new credit card.  Balance transfer cards are typically employed when one has an over encumbering balance yielding a high interest rate, and desires to pay it off with a more affordable plan.  Considering the average credit card interest rate is around 17%, transferring your balance can often be a good idea.  “A good idea?”, you ask,  “How about a freakin’ great idea!  What kind of idiot would pass up on a 0% balance transfer credit card?”  Well, an idiot who did his homework…c’mon, you knew there would be a catch or two – here they are:

• Remember when I said that zero percent credit cards don’t last forever?  I’m saying it again.  Once that 4 month, 6 month, 12 month…period runs out, that rate is going from 0 to 60.  Well, maybe not 60, but it’s going to skyrocket, and any remaining debt is going to skyrocket as well.  Only sign up for a 0% balance transfer card if you’re sure you can pay it off within the introductory time frame!
• The interest rate may be zero, but there will always be a transfer fee.  These fees usually flirt in the range of 2.5-3.0% of the total balance transfer.  If you’re carrying a balance of $3000, at 3%, you’re going to be paying $90 on top of you’re existing balance.  Just make sure you do the math before you decide.

0% Purchasing Cards

These are plans that allow you to do most of your purchasing without collecting any interest.  These types of zero percent credit cards should only be considered by a debt free customer.  If you’re already carrying a heavy balance on an existing card, this will likely only get you into trouble.  Like its cousin, the balance transfer card, purchasing cards also come equipped with catches:

• This should sound familiar – don’t spend what you aren’t positive you can pay off before the 0% rate expires.  The same consequences apply as previously stated.
• You’ll notice that above, I mentioned “most of your purchasing” can be done without accruing interest.  Read the fine print, people.  If you’re an online gambler, into porno, instant cash advances, or even buying gift vouchers, you may void your zero percent rate by using your card for any of the above.  Before signing up, make sure you know what spending is considered contract-voiding.

That should be sufficient enough for a basic understanding of zero percent credit cards, and how they work.  You’re now aware of some of the benefits, as well the possible consequences of choosing to use a credit card offering a zero percent interest rate.  Explore the site for further information, and please spend wisely!