Credit cards charge high interest that cut into the savings and household finances and cleans out your balance, making it difficult even to make monthly payments. To handle this problem or you can say to reduce it, some people turn to 0 interest on balance transfer credit cards. They move the high-interest balance to a single card that charges low or no interest at all for a certain period often 12 to 18 months.

Credit card issuers have been using 0 interest on balance transfer as a marketing strategy for years now. Many have been using this as a method of transferring the balance until the debt is paid off. A study in 2000 concluded that 17% of the credit card balance is transferred annually with this method.

All the cards are not the same; some offer this for a longer period than others. It is a rare case that you will find a card that does not charge 0 interest balance transfer fee. Credit card companies make 0 interest on balance transfer offers because they want to steal business from their competitors. So, it makes sense that the banks will not let you transfer balances between two credit cards offered by the same bank. If you have an airline credit card or a store credit card, just make sure you know which bank issues the card before you apply for a balance transfer.

Few things are received free in life. But, if you are getting a chance to pay off your debt using a 0 interest on balance transfer you can choose this option. Soon you could get rid of your card without paying a dime. A few cards which are very good 0 interest on balance transfer cards are as follows:

• Barclay Card 0% APR, $0 fee, longest deal
• Santander Sphere, 0% APR, 24 months, $4 fee
• Discover It, 18 months, 0% APR, 3% fee
• Unify Financial Credit Union Visa, no expiry, 5.49%APR, $0 fee
• Sun Trust Bank Prime Rewards, 36 months, 4% APR, 3% fee

Advice: Never use your credit card at the ATM.

Most cash advances are charged upfront with an amount of 5%. There is a higher cash advance fee of 20%. There is no gap and the interest starts to grow immediately. Credit card cash advance is an expensive business. Always make your payments on time as late payments result in credit card companies hitting you with a late fee which is steep. If it is over 30 days, they report to the credit bureau; late payments have a negative impact on your credit score. At 60 days, you lose your 0 interest on balance transfer rate and will be charged a penalty interest rate close to 30%. To avoid this pitfall, automate the payments.

0 interest on balance transfer offers are valid from the date you open an account and not the date you complete the transfer. It is important that you complete the balance transfer immediately so you can benefit from the low-interest rate. Most credit card companies close the balance transfer offer within 60 or 90 days.

Your main aim is to transfer a balance to get out of debt. Don’t try to spend on the credit card, you may end up being more in debt than you imagined. This is because you will be charged interest on your purchase balance. If your credit card has a 0% balance transfer rate but not on purchases, you will be charged interest on your purchases immediately until your entire balance (plus balance transfer) is paid in full. It means you lose the grace period on purchases as long as you have a balance transfer in place.

Banks do not let you transfer the balance between two credit cards offered by the same bank. If you have two cards, just make sure that they belong to different banks. If you are not sure which card to buy, calculate the amount of debt you are trying to lower, your current rate, and the monthly installment you can afford. The calculator calculates and offers cards which help you in making the most savings on interest payments.

Balance transfer or loan
At 0%, you will get the lowest rate. But the fixed monthly payment and a fixed date may make you comfortable. A lot of companies offer great rates on loans which you can pay off.

Only those individuals with good/excellent credit are approved for 0 interest on balance transfer credit cards. Some card companies allow the addition of a family member to the card. If you lack credibility, then some card issuers allow you to add a friend or family member with better credit rating.

You may hold many accounts with your bank. Just be sure the entire sum does not exceed the transfer limit. Some issuers cap the transferable amount to a level lower than your total credit line.