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"0% intro APR on balance transfers for 12 months"

A

abc

Diamond Member
when a credit card says this.... and you do get this card...

does it mean exactly the following:


I move $xx dollars from a oustanding balance of an existing creditcard into this 'promo' card

and from that point to the next twelve months that any of this $xx dollars is NOT paid off...
it still does not collect any interest fees at all... balancee = $xx dollars.

But I just have to pay off, perhaps lump some, on the last day of the 11th month.

 
You don't have to pay it off. It will just go back to the standard rate of what that card will give you(ie 9% or whatever) after 12 months.
 
you have to make minimum monthly payments.
you'll probably get a transfer fee as well. still can be a great deal though.
 
I believe most of them have defered interest..which means if you move $1000 on the card, and its normally a 19.99 APR card, it will accrue that interest and "defer" it until you fail to pay the $1000 off by the 12th month, and then charge you 199 dollars in interest that was defered.
 
Your post confused me but yes that's what it means.

However during that 12 month period you are still required to make MINIMUM MONTHLY PAYMENTS once a month.

Here's what I did:

CitiBank offered me 0% for 18 months on their Dividend Platinum Select VISA with a limit of $2,000

I applied, was approved was asked what previous balances I'd like to payoff. Gave them my Bank of America/Alaska Airlines CC, they electronically paid BOFA $2,000

So now my BOFA cc has a $2,000 payment and I owe CitiBank $2,000 for this new credit card with 0% for 18 months.

I wanted to make every effort possible to make monthly payments so in 18 months I wouldn't owe $2,000 or else have to pay interest. Since I am HORRIBLE at saving money I just split up my monthly payments into even installments. Sort of like a car loan.

So every month I paid around $110, 18 months later the $2,000 was paid off and it only cost me $9 finance charges (there was a minumum of $0.50 per month finance charge for whatever reason).
 
Originally posted by: Saulbadguy
I believe most of them have defered interest..which means if you move $1000 on the card, and its normally a 19.99 APR card, it will accrue that interest and "defer" it until you fail to pay the $1000 off by the 12th month, and then charge you 199 dollars in interest that was defered.
Click to expand...

This has not been my experience, they just start you at the 19.99% on month 13 day 1.
<- on his 6th or so 0% credit card
 
yes you will acrue no interest. Be warned that I think sometimes (all the time?) there is a surcharge at a few percent of the amount you move in.

Best idea? Stop carrying credit card debt.
 
For the balance transfer fee's just threaten to back out and they will most likely waive the fee.
 
Best idea? Stop carrying credit card debt.
Click to expand...

Best advice ever!

If you can't afford to pay cash/check/debit card for your purchases or pay your account IN FULL every month, you are asking for serious trouble.
 
those 0% balance transfers are awsome, i shuffled some money around and put my house' down payment on my credit card! lol the just gace me a 50k loan 0% for a year 🙂

if your good with handliung your finaces you can kepp floating around any debt that you have at a very low balance transfer rate.
 
0% works, but you have to remember the end date. If by the time the promo ends, you still have a balance, they will charge you all back interest. So what you should do is just pay min payments then 1 month before, pay it all off at once.
 
Originally posted by: sygyzy
0% works, but you have to remember the end date. If by the time the promo ends, you still have a balance, they will charge you all back interest. So what you should do is just pay min payments then 1 month before, pay it all off at once.
Click to expand...

Again, this has NOT been my experience. I'm not saying that some cards will do this to you, but none of the ones I've had have charged back interest.
 
I have been using the 0% cards for a few years now. If you can't pay them off for one reason or another, make sure you transfer your balance about 2 months before your 0% period comes up (some cards take a long time to transfer). You can then go from 0% to 0%.
There are also some cards out there (Chase) that have a 0% lifetime on all balance transfers. Get one of those, and NEVER use it for anything. Cut the card up. Then all you have to do is make minimum (around 3% of balance) payments until it is paid off. If you purchase anything with those cards, you will pay interest on the new purchase, but your payments will be applied to the balance transfer. Basically, you will be paying interest then until the card is paid off.
 
Originally posted by: Ameesh
those 0% balance transfers are awsome, i shuffled some money around and put my house' down payment on my credit card! lol the just gace me a 50k loan 0% for a year 🙂

if your good with handliung your finaces you can kepp floating around any debt that you have at a very low balance transfer rate.
Click to expand...

Be aware that the CC company can change the rules (with notice) at any time. Don't put anything on a 0% card that you can't deal with if for some reason the interest rate changes from 0%.
 
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