How to Transfer a Credit Card Balance With Zero Percent Interest

0% balance transfers can save you money

No matter what the level of overall interest rates, the rates on credit cards never seem to go down. With credit card interest rates rising well into the double digits, it is important for consumers to pay down those balances and save money wherever they can. One of the most effective ways to save money on interest is to take advantage of 0% introductory interest rate cards and transfer your high interest rate balances to those cards.

Things You'll Need

• Credit card application
• Balance transfer form
• Credit card statements

Instructions

1. Gather your credit card statements and review the balances and current interest rates. This will make it easier to determine which balances to transfer.

2. Locate a credit card offer with a 0% introductory rate. A number of Web sites track the availability of these cards. (See Resources.)

3. Read the terms and conditions carefully to make sure the 0% interest rate applies to balance transfers. Apply for the 0% interest rate card and wait for the approval decision. Also note when the 0% switches to their regular rate and what that rate will be if you don't repay in full before it switches over.

4. Ask the issuer of your new credit card for checks you can use to pay off the balance on your high interest rate cards. Fill out those checks when they arrive and mail them to the payment address on those high interest rate cards.

5. Check back in 5 to 10 days to make sure the transfer has been completed. Contact each of your credit card issuers using the toll-free number on the back of the card. Make sure that the entire balance of the card has been paid off. Cancel those high interest credit cards if you no longer need them.

6. Write the expiration date of the 0% balance transfer offer on your calendar and circle the date. Set a reminder on your email calendar as well--set the reminder for at least a month prior to the expiration date of the offer. Keeping track of the date when the 0% interest rate offer expires will help you avoid unnecessary interest charges once the promotional period has expires. One catch of the 0% balance transfer is that once that rate expires the interest rate typically reverts to a high level.

References

• Money Blue Book: How to Avoid a Balance Transfer Mistake

Resources

• Credit Card Guide: "Select a 0% Credit Card and Apply Online"