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3 Things You Need To Consider Before Taking That 0 Balance Transfer Credit Card Offer

By: Max Anderson

A 0 balance transfer credit card may seem like the solution to your credit card woes. However, before you jump in with both feet there are some things you need to watch out for. Remember that saying "if it looks too good to be true..."? There's a reason so many people say it. Make sure you don't fall for these 3 common pitfalls when looking for a 0 balance transfer credit card.

1. You Want Me To Pay What?

A 0 balance transfer credit card can seem like a wonderful opportunity -- until you read the fine print, that is. Some balance transfer credit cards want you to pay a free to transfer your balances over to them. Sometimes this fee can be as much as 3 or 4 percent.

If you have a $5,000 balance and you're being charged a 3-percent balance transfer fee, that 0 balance transfer credit card is going to cost you $150. Since some balance transfer credit cards don't charge a fee at all, that fee may be hard to swallow.

2. Let Us Abuse You Yearly

If you have good credit, you should never pay an annual fee for a credit card. Even if it is a 0 balance transfer credit card.

There are plenty of credit cards out there that don't charge any annual fee at all. Why should you pay $30 or $40 a year for a card when you can get the same thing for free somewhere else.

If you're not careful, a 0 balance transfer credit card can nickel and dime you right out of your savings. Don't end up paying more for that 0 percent than you would with a fixed-rate low-interest card.

3. Look How High I Can Jump

A 0 balance transfer credit card is not a fixed rate card. Your interest is going to go up at some point in time. Just how high it goes is the question.

Some balance transfer credit cards entice you with a 0-percent introductory offer, jumping up to more than 20 percent when the "real" real rate kicks in. If you have good credit, that's no deal at all.

Before you apply for any 0 balance transfer credit card, make sure you know exactly how long that 0 rate lasts for and how much it's going to go up to when the introductory period is over.

Balance transfer credit cards can indeed be a credit card user's best friend. They can also be your worst nightmare. Make sure you avoid the above mistakes and find a 0 balance transfer credit card that's truly right for you.

Article Source: http://www.articlesnatch.com

About the Author:
For more tips on balance transfer credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.

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