Interest free balance transfer

Interest-Free Balance Transfer: Read the Fine Print

If you live in Nikolski AK and have credit card debt, an interest-free balance transfer may sound like the perfect solution to your financial woes. Always keep in mind, though, that things that sound too good to be true often are. The same holds true for interest-free balance transfers. Before you sign on the dotted line, ask yourself these three questions:

Is the offer really interest-free? Most of the time, interest-free balance transfer offers are "teasers." In other words, they offer free interest for a certain amount of time, after which the interest rate goes up. If you can pay off the transfer prior to the interest rate going up, the offer is really interest-free. If you can't, you may end up paying more finance charges than you do with your current credit card.

What are the transfer charges? Typically, interest-free balance transfer offers have a one-time fee associated with the transfer. For example, you may be charged three percent of the amount transferred. Sometimes, the transfer fee has a ceiling (that is, you won't be charged more than $100), but sometimes there's not. Determine if the fee being charged is less than you'd pay in interest on your current credit card.

Are there ancillary benefits? Often, banks in [statetitle] will include other benefits with an interest-free balance transfer offer. For example, you may get cash back, airline mileage, or other types of rewards points. If so, weigh the added benefits when you consider the offer. If you can pay the debt off before the teaser period ends and get additional benefits, you truly could be in the position of getting something for nothing.

There are many people who live in Nikolski AK and elsewhere who play interest-free balance transfer roulette. In other words, they move their credit card debt from one card to another, paying off one interest-free balance transfer with another. This is a great system - but only if you have impeccable attention to detail and can keep track of where you are in relation to the various teaser offers. If you don't, it could all tumble down like a house of cards, and you could end up owing a tremendous amount in finance charges.

The bottom line? Take advantage of interest-free balance transfer offers when the fine print makes sense, but be careful not to juggle more offers than you can successfully track.