Is it worth transfering a credit card balance to a 0% card for 12 mos?

Question

They are offering 12 mos. 0% interest and NO transfer fee.

Answer 1

hell yea!....you save a lot on interest if it's a high amount. BUT usually after the promo period, they sock it to ya. They bank on the idea that you'll be comfortable sitting on the balance. Just get the balance paid of ASAP

Answer 2

I've done this myself. If you otherwise have good credit, and especially if this is with an account already open, then this can be a really good idea. If you want to minimize the effect on your credit, keep the balance below 30% of the credit limit on the account.

Be careful - even if you set up an auto-payment to the account, the creditor can change your due date before the 12 months is over, forcing your payment to be late. And once late - even one day late - your interest rate can skyrocket to 30% overnight.

Also, don't use the card for any purchases. Many cards set up the account so that you have to have all purchases paid down (at a much higher interest rate) before any of your payments are credited against the balance transfer.

If you manage it right, however, you can even make money on the deal by borrowing at 0% and depositing the balance at a 5% return in a money market account. Good luck!

Answer 3

Careful. Most cards have a universal default provision. That means that they can jack your rate to the default rate (usually around 30%) if they see something they don't like on your credit report. Even if it doesn't involve that company, they can still jack it. Best to pay it off and not to carry credit card debt. If you do the transfer you will save money for the 12 months, as long as you are careful, and they don't jack your rate.

Answer 4

Absolutely. The biggest killer on any credit card is the outrageous interest they charge. Just ensure that you understand and read the conditions that apply. With all of the competition these days for credit cards you should easily be able to find a replacement.
The attached link is an excellent article on 0% credit cards. I hope this information is helpful to you.

Answer 5

If you have no transfer fee, and zero interest for 12 months, it would be worth it to transfer, but unless you plan to pay it off, it may cost you more if the rate goes up and you do not transfer back to another card.

Answer 6

this is a con job the banks love .
why? they know you will not be smart or educated enough to destroy the other slave cards. so later they (the 0% card ) can at "THEIR" choice raise your rate 30%
and they don't have to tell or show you why.
it is in the very very Small Print.
smarter deal is visit daveramsey.com to learn what bankers slave cards pray you never ever learn and apply that info.
get on a budget to pay of the slave cards .
get 2 more jobs work to get freedom .
save for your future . read 'the millionaire next door' to learn what the working poor will not.

Answer 7

Make absolutely sure that there are no hidden charges or commitments. Credit card companies are notorious for cheating people out of their money. But if the deal is legit and you have read the fine print, then of course go for it. But be very careful.

Answer 8

It is definitely worth it if you can pay off what ever amount in that 12th month. If not, then you need to see what the interest rate will go up to after that.

You do not want the interest rate to go up above what you are paying now or it will cost you more in the long run.

Do the math and save save save !!

: )

Answer 9

Unless you are paying 0% now, yes.