The Best Time To Use A
0% Balance Transfer Offer

A 0% balance transfer is one of the best ways to pay off small amounts of debt that are at a high interest rate. Whether you are transferring another credit card, the remaining balance of a car loan, or even a personal loan, a balance transfer at 0 percent allows your full payment to be applied towards your principal each month. What cards offer zero percent balance transfers? How long do 0% promotional offers last? I'll answer these questions and more here for you.

So why would I want to write a balance transfer check to myself? Here's some things that you can do with those funds.

1. Pay for home repairs that you can't otherwise pay for by credit card.
2. Pay family and friends back for money borrowed.
3. Make large purchases, that you would otherwise pay a higher rate of interest on if you charge them directly to the credit card.

I've also known some people to even take the funds and deposit them into a high yield saving account. They make payments on the credit card each month, and as soon as the offer expires, they take the money out of the savings account and pay off the 0% balance transfer, therefore making an interest income with the balance transfer. This is not an option that works for everyone, it's more of an investment tool used by consumers that can support such transactions.

0% balance transfer offer lengths vary from credit card to credit card. The standard timeframe averages from 6 to 12 months. You'll want to confirm the length of the offer by reading the credit card's terms and conditions before applying for it. In most cases you also receive a copy of the terms and conditions when the credit card is received.

Some credit card issuers even allow you to extend the 0% offer by several months if you make purchases on the credit card. The purchases usually have to total a certain amount and are required to be made by a specific date in order to extend the promotional offer. Some offers may possibly even be extended indefinitely if you make a purchase on the account each month.

I don't recommend these types of offers, especially if you do not want to be charged a finance charge. Since most card issuers apply your payment to the lowest annual percentage rate first, any purchases you make during the promotional offer will sit there accruing interest until the balance transfer is paid off or expires.

Cards That Offer A Balance Transfer Option