Consumers and companies share a very interesting relationship. The former seeks more value for each purchase; the latter sprints to meet this demand. Today, toothpaste comes with pencil boxes and toys. Pepperoni pizzas are delivered along with video rental coupons. The same is true of credit cards, as well. To keep an edge over the competition, credit card companies are now offering plastics with more benefits and services! One such card is the 0% balance transfer no annual fee credit cards.



Balance Transfer

Availing of a card offering a balance transfer is a wise way to reduce credit card debt. The "balance transfer" in 0% balance transfer no annual fee credit cards refers to the process of shifting the balance from an old card to a new card. After this is done, cancel your old card so your credit score is not harmed. You will then be given a grace period, during which you should pay off the debt. You will receive a special rate for the transferred balance. This rate is typically valid for six months to a year.

The best thing about special balance transfer rates is that they let you pay off your old balance without interesting piling up. Note that the best time to open a new account with a balance transfer feature, is when the old card expires. This lets you to enjoy a new grace period with low or no finance charges.

Zero APR

APR stands for annual percentage rate. Do not be alarmed by this term. Simply put, this is the yearly amount that you pay for obtaining credit. The APR was created so people could compare the cost of various loans. Additionally, lenders are required to disclose the APR that they charge. This makes it more difficult for them to charge mysterious or concealed fees. The grace period on 0% balance transfer no annual fee credit cards varies. Usually, however, it runs for one year.

Annual Fee

A credit card annual fee is a charge you have to pay yearly for using a particular credit card. This fee is sent directly to your credit card statement. Like the 0% APR on balance transfers, it is wise to select a credit card without an annual fee. One example is the 0% balance transfer no annual fee credit card. The less money you have to dish out on various fees and interest rates, the more funds you can course to your purchases.

Cards That Have More with Less

Several 0% balance transfer no annual fees credit cards exist. They include The Chase Platinum Visa Credit Card, the Citi Diamond Preferred Card, and the Bank of America Rewards American Express Card.

Too Much of a Good Thing

The concept of using balance transfers to save money when paying off debts is attractive. However, constantly transferring balances when the introductory APR becomes invalid can cause several problems. You could have difficulty borrowing funds in the future. After all, you constantly avoided paying interest by frequently transferring the balance. Secondly, if the low APR rate applies to a transferred balance and not to purchases, you could end up taking one step forward and two steps back. Lastly, if at some point you are not approved for new balance transfer credit cards, the interest rates on the transferred balance could skyrocket.

There is no denying 0% balance transfer no annual fee credit cards are useful. Like most things in life, however, they should be used in moderation. When used wisely, 0% balance transfer no annual fee credit cards can pull you out of a quagmire of debt to financial freedom.