Do you know that with these cards you can transfer the credit card balance directly to your bank account and use the money for ZERO interest for until the end of the 0% Intro APR period(usually at least one year)?
I have to admit, when I first heard about no interest balance transfer from credit card to my bank account, I was amazed. And when I first heard that people use their “temporarily free” credit card balance money to get some permanently free interest money from their CD account, I was BLOWN AWAY.
That’s when I realized, holy cow! Some easy money could be made with credit cards! And how much I have missed out on these opportunities!
Sorry, but I digress, let’s get back to the topic of credit card debt. Now how can one with credit card debt take advantage of these types of cards? If you are thinking what I’m thinking – yes, to pay your debt! If you have enough credit limit from these types of cards, all your credit card debt could be interest free! How amazing is that!
Well, before you get too excited, there is a catch, or actually a couple of catches…
First, it’ll temporarily lower your credit score, both from applying for the card, and the higher utilization of your credit.
Second, while there are indeed completely fee-free cards for the balance transfer, like the Chase Slate Card (no fee balance transfer, 0% Intro APR for 15 months, isn’t that great?!), for many other cards(Citi Double Cash, Discover It, American Express Blue series cards, etc.), there is usually a small one time transaction fee, usually 3% of the balance transferred. But compared to your 20% or even 30% interest credit card debt, 3% is still a fantastic deal!
What a happens when the Intro APR period? Get some new cards like this, use the new cards’ balance and pay back to older credit card! If not, you’ll again be carrying high interest debt, ouch! Oh, did I mention many the 0% APR period can often be 15, 18, or even 21 months? So it’s really not that much hassle!
So if you have credit card debt and didn’t know about these wonderful no-fee or low-fee balance transfer, jump in! But remember, only use these cards to pay your high APR debt and remember when the promotional 0% APR period ends!