How to Get the Interest Zeroed on Your Credit Cards

Make sure you have the best terms and conditions before you transfer a balance.

If you can get the interest zeroed on your credit cards you will save a lot of money in finance charges and pay off your balances faster. To get a zero rate on your credit cards you need to find a credit card company that offers a promotional rate. Introductory or promotional rates are only in effect for a limited time. To get the best offer you will need to shop around and compare the terms and conditions.

Instructions

1. Gather all your credit cards on which you are paying interest. When you have all of your credit cards at hand the process of getting a zero interest rate becomes easier. You will need the account number and the payoff balance for each card.

2. Call your credit card company that offers a zero percent promotional rate for the longest period of time. Let the representative know you want to do a balance transfer. Give the representative your credit card number and payoff balance for each credit card. He will process your request. The credit cards with interest rates should be paid off in about four to six business days.

3. Review your statements. When you get your statements during the next billing cycle, look them over to make sure the balances have been paid in full. If you overpaid, call the credit card company and ask for a credit balance refund.

Tips & Warnings

• Promotional rates usually last six to 18 months depending on the credit card company.

• When the promotional rate ends, your balance will be subject to the interest rate offered by the credit card company.

• If you don't have a credit card offering a zero percent rate you will have to apply, and if approved, the representative can complete the balance transfer then.

• If you are experiencing a hardship, some credit card companies will lower your credit card to zero percent temporarily.

• You can negotiate the balance transfer fee with some card companies, according to the website Bank Rate.

• Some credit card companies will charge a flat fee such as $75 instead of a percent.

• When you obtain a balance transfer, you will incur a fee of 3 percent to 5 percent of the transferred amount. Always find out how much you will pay before completing your transfer. A balance transfer of $1,000 will cost $30 if the card company charges 3 percent.

• A credit card company will transfer any size balance, but it may adjust the fee to at least $5. For example, if the amount of the transfer is $40 and the balance transfer fee is 5 percent, which is $2, the company may set the fee to at least $5. This can vary from company to company.

References

• Credit Cards: 0 Percent APR Credit Cards
• Credit Cards: Balance Transfer Credit Cards
• Bank Rate: How Do I Transfer a Balance?
• Bank Rate: You can negotiate a balance-transfer fee
• Credit Cards: 5 new rules in the credit card balance transfer game