Are 0 percent APR balance transfer options scams?i.e.Is there some fine print that allos them to charge fees?

Answer 1

Not usually a scam but as others stated usually a limited time and they almost always charge a balance transfer fee.

The other caveat is payments are always applied to the balance with the lowest interest rate, so if that card had a zero balance, you transferred $5,000 and later charged $1,000, virtually all of your payment will go towards the $5,000, then the interest on the $1,000 and then just a little towards the $1,000 balance. So you end up paying interest on the $1,000 for quite awhile.

Best thing to do is make the transfer then "sock drawer" (ie put it away and do not use) til the promotional rate ends or you pay of the balance transfer.

Answer 2

Not a scam but it doesn't last forever. Read the fine print. The APR will change after a period of time (6 months, 1 year) then go to the prime rate plus whatever percentage rate they are spelling out in the print. So you could end up paying a higher APR after the intro rate if you don't shop correctly.

Answer 3

It's not usually in terribly fine print, but yes, there are almost always transfer fees on balance transfers to the 0 percent cards. Not really a scam, they do tell you, and you need to read the entire agreement.