Saving Money with No Fee Balance Transfers

If you currently carry a balance on your credit card, you could be saving hundreds of dollars with a credit card that offers 0% APR balance transfers . For those unfamiliar with the concept, 0% balance transfers allow you to move money from your high interest credit card to a new credit card issued by a different company. In general, these introductory offers last about one year. Just how much can you save in that period? With average interest rates hovering around 14%, you could save $140 for every $1000 you transfer.

As with most offers that seem too good to be true, there is a catch with the vast majority of 0% balance transfer offers: they charge a 3% balance transfer fee for every balance you transfer. Most credit cards cap this transfer fee at $75. However, some companies have raised the maximum fee to as much as $250, while others have eliminated the dollar cap altogether.

Even with the standard 3% fee, a 0% balance transfer can still save a person with $5000 in debt over $600 in interest during the course of a year. Fortunately, however, there are a few rare credit cards that offer no fee balance transfers . A little over a year ago, there were more than ten credit cards that offered no fee 0% APR balance transfers. Now, there are generally no more than two or three of these offers available at any given time.

With a no fee balance transfer, a person transferring $2500 from two credit cards can save $150 in fees. During the 0% APR period, this person's total interest and fee savings would be over $700.

If you are unable to find a credit card that offers no balance transfer fees , you still stand to save a substantial amount of money by transferring your current high interest balance to a credit card that offers a 0% APR for 1 year. However, if you can find a no fee offer, be sure to take advantage of it.

One website that lists credit cards offering 0% APR balance transfers that charge no transfer fees is SmartCreditChoices.com. There, you can compare a wide range of current offers from major US credit card issuers and apply online for a 0 balance transfer credit card.

Additionally, if you feel you need to know more basic information about credit cards, you can learn more about 0% balance transfers at Wikipedia before applying online at SmartCreditChoices.com.

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