If you have recently studied your credit card bills, then you probably know how much money you are wasting on interest payments. Even if you make more than the minimum monthly payment you may find yourself weighed down by debt. One of the best methods for eliminating credit card debt is to find a zero percent balance transfer offer and make as many interest-free payments as you can.
Zero interest balance transfer requirements
If you never carry a balance on your credit card, then the interest rate doesn't matter and you can focus on other aspects of a credit card offer such as the annual fee and a rewards program. If you do have credit card debt and want to pay it off in full, then you can compare balance transfer offers to find one that meets your needs. Most zero interest balance transfer offers are limited to consumers with good or excellent credit, so you may want to start the process of shopping for the best zero percent credit cards by checking your credit score and your credit report.
0% intro APR credit cards for purchases
Some credit card companies offer zero interest credit cards for purchases as well as balance transfers. If you plan to make a big purchase and know you will need a few months or longer to pay the bill, then you should compare zero interest credit card offers to find one that covers purchases for as long as possible. Make sure you read the fine print so you know what the interest rate will be after the introductory period, especially if you are not sure you can pay the balance in full before the interest rate rises.
Choosing a zero interest credit card
In order to choose among 0% credit cards, you'll need to know whether you intend to transfer balances, make new purchases or carry a balance in the future, because these decisions impact which aspect of a new credit card is most important to you. Once you have decided, you can compare credit cards on the basis of:
- Introductory APR for balance transfers
- Introductory APR for purchases
- How long the introductory period lasts for transfers and purchases
- The fee to make the transfer, usually a flat fee or a percentage of the balance
- Interest rate for purchases and for the balance after the introductory period ends
Credit card debt elimination
If you want to pay off your balance in full, you can use a credit card payoff calculator to see how much you'll need to pay each month in order to eliminate the balance before the interest rate increases. For example, if you owe $2,000 and choose a balance transfer offer with a five percent fee, you will need to pay off a total of $2,100 as long as you don't charge additional expenses to that credit card. If you can pay $175 per month you can pay off the debt in 12 months, but if you can only afford to pay $140 per month, you may want to search for a zero percent balance transfer with an introductory period of 15 months.
When searching for a new credit card, you should concentrate first on setting your goals and establishing a budget and then find the best credit cards to match your goals.
If you know you want to eliminate your credit card debt, then compare the zero percent intro APR credit cards on this page to find the one that meets your needs.