0% balance transfer credit cards can be any type of credit card that, at one time or another, offer an interest-free period on any balances transferred across from another credit source e.g. another credit card, an outstanding loan, a store card etc.
By completing a simple balance transfer you pay absolutely no interest on the transferred amount for an agreed period of time – thus meaning that each monthly payment you make goes, in its entirety, towards paying off the actual balance. Depending on the credit card deals available you might be offered anything from 6 months interest free up to 18 months.
So what types of credit cards are classed as 0% balance transfer credit cards?
As mentioned above, virtually any type of credit card can become a 0% balance transfer credit card. This means that you need to look at the credit card deals as a whole before choosing which to apply for. There are several common types of credit card on the market, each of which offers a different type of incentive.
- Cashback credit cards – this type of card awards you with a percentage of your purchase amounts back over the course of a year. In other words you literally get free money just for using your credit card.
- Rewards cards – these either offer points for every pound you spend or discount vouchers to use in specific shops and places of interest.
- Airmiles credit cards – again you are awarded airmiles with every pound you spend on your credit card. These can then be redeemed against flights.
In simple terms then you choose the credit card deals that offer the type of incentives you’d make use of and apply for just one or two. Don’t apply for more than this because every application is recorded on your credit report (and more than a few applications might give the impression you’re having financial difficulties).
When your application is accepted you then normally get the option of completing a balance transfer, at which time your card becomes one of the 0% balance transfer credit cards that everyone wants. If you have outstanding debts elsewhere that you are paying interest on it is vital that you transfer the balances across as soon as possible. That way you start saving money right from the start.
Living a debt free life is the wish of every citizen after the recent economic crises , everyone realized that living with debt is just like hell , it comes like a nightmare and leave a dark impression on our lives . Spending beyond earning limits sounds good but if you will not return the money or some part of it on right time then interest rates will go sky high which will ruin your happy life . There are lots of ways to get out of debt situation but below are some easy tips for becoming debt free ,
- Prioritize spending: Try to avoid using Credit cards , If you have cash available then try to use it .
- Get Professional help: Try to get professional help by haiving a debt counseling session with industry top leaders .
- Consolidate your debts: If you see that you are unable to manage your debt then go for debt consolidation , because its the best way to get out of worst situation .
- Pay off a little at a time: If you don't have cash and need to use credit in any way then try to pay off little at the end of money rather than not paying even a single penny and leave everything for another money with high interest rates .
- Work with creditors: Ask the creditors to reduce the rates and corporate with them for more insight about the situation .
- Direct your deposits: Direct your saving account for repayment automatically at the end of every month . This technique will never stuck you in worst scenarios .
If you have a bad credit and need money quickly then you can apply for debt consolidation loans , this technique will work for you and can help you up to some extent to get out of worst scenarios .