No Balance Transfer Fees
Have you ever been attracted to a credit card because it promises you no balance transfer fees? Nearly of us have tried one of these. There are a a few credit card providers who may provide you no balance transfer fees deals on balance transfers and sometimes purchases also.
Particularly if you already have a significant outstanding credit card balance that is being added to with the monthly interest payments, these offers are very interesting. No balance transfer fees offers can save you quite a bit of money on interest that would normally have been added to your credit card balance. Saying that you should only ever apply for another credit card if you have already took a long hard look at your financial situation and that this is the correct financial move .
Suppose you owe two thousand dollars on a credit card that charges 10% APR. So over during that 12 month period, this balance will go up by 200 dollars in interest charges. Now suppose you find a credit card that offers you 0% on balance transfers for twelve months along with no balance transfer fees. Well it is obvious that 0% is better than 10% and if you signed up to this offer, accepting there are no balance transfer fees, then you will save a substantial amount over the twelve month interest free period? The answer is 200 dollars.
While this is a very simple example, it illustrates an important point when it comes to 0% balance transfers it is important also to try and get the no balance transfer credit card also as this will save you typically 3-4% over the year.
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