Zero Interest Balance Transfer Offers: Are They a Good Idea for You?

In these uncertain economic times, many of us are looking for a way to save a buck. Even more of us are looking for some extra wriggle room in order to pay for larger ticket items without having to have the entire amount owed up front. If you have good credit, 0% APR balance transfers from one credit card to another may be an option for you to both save on and defer expenses at very minimal cost.

There are a number of options available in the 0% balance transfer market (although less than there once were) the following deals can be found here.

Creditcards.com details the above cards as well as a myriad of other choices along with other perks and benefits associated with each option. It is a very comprehensive site that helped me choose a 0% transfer card of my own to help finance a standby generator I had installed at my home.

A technique that can be used to optimize all of your credit cards potential benefits would be to make the purchase in which you intend to do the balance transfer on a credit card that provides you airline miles, or cash back on purchases. Then, transfer the balance to your brand new 0% APR card and pay off your debt in a time frame that works for you without being charged interest. Depending on what you buy and how much you spend, using this technique could go a long way toward paying for airline tickets to lower the cost of a vacation or receive cash for your purchase without diluting your earnings by taking a hit on interest charges for the ongoing credit card balance on your normal credit card.

Important Note: Although taking advantage of the perks and privileges of having good credit may be a good idea, if you abuse these privileges, you may find your credit score and there for credit available to you in jeopardy.

Be sure to set a payment plan up to pay off the 0% credit card balance before the introductory time period has expired. Once it does, you will incur large interest rates (10- 30% depending on credit score) on whatever balance remains. This can be a shocking expense to deal with if you over-extend yourself.

Don’t get caught up in the 0% balance transfer vortex. Continuously transferring balances from 0% card to 0% card is a sign that you may be in over your head. If you can’t afford to pay a balance off at no interest over 21 months, you cannot afford to buy the item

Don’t be frivolous: Be smart with what type of purchases you make and use on a 0% balance transfer credit card. You should consider the funds you are using a loan, simply because it is a loan.