Best 0% For 6 Month Balance Transfer Credit Cards

April 9th, 2010

If you are someone looking to save some money and get rid of your credit card balance quickly, then looking for excellent offers on balance transfers is definitely worth your while. There are many available now. However, you should take the time to find the one that will have the most benefit for you.

2.9% p.a. for 12 months2.9% p.a. for 12 months

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	13.24%	0.99% for 12 months	$55	21.49%
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Virgin Flyer Credit Card	20.99%	1.9% for 9 months	$99	20.99%
Bankwest Breeze MasterCard	10.99%	4.99% for 12 months	$69	21.99%
Citibank Rewards Credit Card – Platinum Card	20.99%	0.9% for 9 months	$199	21.74%

Balance Transfer at 0%

Paying high interest rates on your credit card can be very annoying. You may want to look for a credit card that is offering a 0% balance transfer. By doing this, you can transfer your balance to at the lower rate card and hopefully pay it off faster.

You may be one of those people who is overwhelmed with debt and unable to find your way out of it. Many banks are making special offers for balance transfers. If done correctly, transferring your debt to a lower interest rate will save you a ton of money.

You may be asking yourself what exactly is a 0% balance transfer? A balance transfer itself is when you take one outstanding balance on a credit card and transfer it to another credit card. When a credit card company is offering 0% to transfer your balance, that means you won’t be paying any interest on your balance for the term of the balance transfer. As long as you make large payments, you could in turn pay off the credit card balance much faster since you are not paying any interest.

As an example, if you had a balance on a credit card of $1000 at 20% interest, over the course of 6 months you would be paying about $100 worth of interest. If you did a 0% balance transfer on your $1000 balance, you would be paying no interest over the course of the balance transfer period which would save you the $100.

The length of the balance transfer will vary depending on the credit card company you are using. Most credit card companies offer the balance transfer for 6 months. Once the 6 months is up, the interest rate will revert back to the standard. Before opening a new credit card, think about a few things. Will you be using the card for purchases? How long do you realistically think it will take you to pay off the balance transfer? Also, do you want rewards with your credit card? In order to properly prepare credit cards, you need to know these answers.

The other things you need to be aware of are any special terms associated with the balance transfer.

• What is the standard interest rate on the credit card? You will only have the balance transfer rate for a short period so know what the new interest rate will be once that is over.
• What is the transfer fee? Most if not all credit cards charge a fee for making a balance transfer. This could be a flat fee or a percentage based on how much you transfer over. Know this fee because you will be paying it.
• Is there an annual fee? A lot of credit cards charge annual fees, they can range from $0-$200 and over.

Make sure you are aware of all these fees because you will be responsible for paying them. Sometimes, the fees are too much to make the balance transfer worth it so research before you open a new credit card.

Balance Transfer for 6 Months

When doing a balance transfer, all credit cards set a time limit for the length the interest rate will be in place. Most credit cards offer a 6 month balance transfer. Say you don’t have any debt to transfer, can you still benefit from a low interest rate for a certain amount of time? The answer is yes. For those that do not have any debt, you can always use the card as a type of loan. You will never find a loan with an interest rate as low as 0%.

Although the rate is 0% for a 6 month balance transfer, you may be able to use the card with that interest rate for purchases. Check the terms and conditions, as often the low introductory rate extends to purchases as well.

You may be considering a large purchase, such as furniture and instead of taking out a loan you can use your card with the 6 month balance transfer to pay for the items. You will be able to have interest free periods so you can pay off the credit card much quicker.

If you do have debt, you need to consider everything before making the decision to open a credit card. Looking at the fees associated with the credit card is the most important thing you can do.

Comparing 0% Cards

Regardless of what credit card you open, having a 0% balance transfer credit card is sure to be better than the credit card you are currently using. Many websites have comparison tools where with one click you can look at everything about the card, fees, terms, etc. This will allow you to make an educated decision on the best credit card for you. By opening one of these cards you will be able to pay off large amounts of your debt as you will not be paying any interest. Remember, the balance transfer rate is only offered for a set period of time. Do not go into this thinking you will have an unlimited amount of time to pay off the credit card at the low interest rate, as that is not true.

Once your 0% interest rate expires, your balance will revert to being charged the standard interest rate which is usually upward of 20%. If you do not believe you can have your debt paid off in the six month time period, you may want to look for a credit card that offers a longer term. Some credit cards offer low interest rate balance transfers for up to one year. These require very good credit, but they are out there.

If the credit card you decide to open has the 0% on balance transfers only, make sure you stick to only using the credit card for this. If you start using the credit card for other reasons, such as purchases or cash advances, you may find yourself worse off than you were before you opened the card.

The balance on your transfer and that on purchases will be calculated differently and payments will also be applied differently. Your purchases will carry a different interest rate than the balance transfer and this is normally much higher.

There are cards available that offer low interest rates on both balance transfers and purchases. If you want a card that does both, do your research as they may be a bit more difficult to find but they are available. Always make sure you make payments on your credit card, even if it is just the interest.

The fees for not making minimum payments are hefty and you do not want late charges. Understand all terms and conditions associated with your credit card so you are never in a situation where your interest rate rises and you are not aware of it.

Credit cards and balance transfers can be extremely tricky, compare the cards you are considering so you know you are getting the best rate and offer that works for you. Hopefully you will be able to get yourself out of debt much quicker by doing a balance transfer, or will be able to purchase something you need and pay it off without having to take out a loan.

Check out other 0% Balance Transfer Cards.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
Westpac 55 Day Credit Card	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
Citibank Clear Platinum Card	11.99%	2.9% for 12 months	$99	21.74%