Getting a 0 balance transfers credit card sounds like such a great deal that many people forget that they should be seeking out other benefits from these cards as well. Savvy consumers who apply for balance transfer credit cards know that there are pros and cons to getting these cards. The idea for a smart consumer is to maximize the pros of the balance transfers credit card by only applying to those cards which offer the best in additional benefits.
Low purchase APR:
The first thing that a smart consumer will want to make sure is that the balance transfer card offers a low APR on purchases. Where many people get trapped in bad deals with balance transfers credit cards is that they use the cards for purchases in addition to the transfers. Often, these credit cards have high interest rates on purchases which means that people are wasting money that they don’t need to be wasting. A smart consumer will not only check out the APR on the balance transfer but will also review what the APR will be on purchases that are made on the balance transfers credit card. Additionally, it is smart to look at what the APR on the balance transfer will be after the promotional period runs out.
Long duration of 0 interest:
This brings up another important point that people should consider when applying for the no interest balance transfer credit card. That point is that the zero interest probably doesn’t last forever. There is generally a period of time during which no interest accumulates so that the borrower has time to pay off the debt. However, there are some credit cards that have a lifetime 0 interest. A consumer with a good credit history can demand that the 0 balance transfers credit card either has a lifetime zero interest or that it has a very long duration (at least one year) during which no interest accumulates.
Cash back and rewards:
Many consumers don’t realize that the zero percent interest rate on balance transfers credit cards isn’t a reward in and of itself. Sure, it’s great and it can help significantly reduce the cost of debt. But you want to get a card that’s going to keep working for you. To do this, you need to select cards that also offer other rewards. A smart consumer will demand that her 0 balance transfers credit card comes with some type of reward program, whether that’s in the form of cash back or points towards gift cards. This helps to make sure that the card offers more perks than just the initial low transfer rate.
There is no reason that a consumer has to make the mistake of putting the cart before the horse. In other words, don’t jump on the chance to get 0 credit cards if it doesn’t offer all of the benefits that it should offer. Seek out those cards which have a low purchase APR, a long duration of interest-free payments and additional rewards. This way, you give yourself the very best. Really, you shouldn’t demand anything less.