When it comes to “special offers” on credit cards, nothing gets quite as much attention as a “0% balance transfer.” And while not all promotions are built alike, there are some that go above and beyond.
Here are a few of the reasons that a credit card balance transfer can make sense for your budget.
That “0% APR” detail can look really attractive—an introductory interest rate that’s low or at zero can save you some bucks on your budget for the promotional period. The kicker is reading the fine print—often, these sorts of introductory interest offers may tack on an upfront balance transfer fee of three to five percent to make up for the losses in the long-term. (Now thru Jan. 31, 2019, you can enjoy an interest-free introductory period and 0% balance transfer from Sioux Falls Fed—click here for more!)
A balance-transfer offer can often be an opportunity to take stock of whether or not your current credit card is meeting your needs. A financial institution willing to offer a lucrative deal such as this may offer other long-term benefits, such as high-quality rewards program or a lower standard interest rate. Take a peek at what the typical benefits are beyond the promotion—it may be a long-term card in your wallet!
Some offers allow you to make only a single balance transfer during the promotional eligibility period. Others, though, give you the opportunity to transfer at will throughout a multi-month period (such as this Sioux Falls Fed offer), and they all apply to your fee-free, interest-free balance transfer. Take advantage of these sorts of opportunities while they last!
One other budgeting benefit of engaging a balance-transfer promotion is the chance to move multiple debts into one simple payment. While you may currently be paying down balances on several different cards with varying interest rates, you can make your payments more manageable and more predictable by consolidating into one card—and a 0% introductory interest rate certainly can’t hurt.