All credit card companies are interested in making sure their customers keep an active credit card balance on their accounts. One way to make sure of this is to offer a 0 percent credit card transfer, where the credit card company offers to take over the debt owed to another credit card company at a lower interest rate, saving the consumer what could be a sizeable amount of money.
If a customer has a sizeable amount of money as a balance on one credit card, a 0 percent credit card transfer can be highly appealing. In most cases, credit card interest rates can vary between 10 and 25 percent, which can make for a sizeable monthly payment. If a consumer makes a 0 percent credit card transfer, however, they pay no interest for a pre-determined period of time (perhaps the life of the balance transfer). This could save the consumer hundreds of dollars per month, and certainly will save them a great amount of money over the long term.
If the consumer makes a 0 percent credit card transfer, they inform the credit card company how much money they are transferring and the credit card company then works out the details with the competing company. In some cases, the 0 percent credit card transfer is made in the form of balance transfer checks, which the consumer can fill out. They can pay the balance of one card off with the check, and the amount is transferred to the other card at a lower interest rate.
Sometimes a 0 percent credit card transfer can sound too good to be true, and that is because it may well be. Reading the fine print can be important when reviewing a credit card balance transfer offer, because the positives may only be for a limited time. In some cases, the low interest rates that make a credit card balance transfer offer sound good are for a limited time, and if the balance is not paid off during that period, the interest rate can go up to the regular amount or higher. Some offers also require a minimum amount of money to be transferred for the offer to apply. If any payment is made late or skipped, the offer could be voided and the interest rate significantly increased.