Common Question About 0% Balance Transfer Credit Cards

Many people look at 0% Balance Transfer Credit Card offers and wonder, “what’s the catch?” So let’s dive into this question.

QUESTION: Is the interest rate really 0%? 
The answer is, “YES!” Many of these offers do, however, have a small transfer fee – usually around 3%. 

Let’s use an example to see how this works.

Suppose you transfer a balance of $5,000 from a card that has a 21.99% interest rate. You apply for a 0% balance transfer credit card. This offer comes with a 3% balance transfer fee, but it also provides 0% for 18 months.

Upon acceptance of your application, the 3% balance transfer fee ($150) will be applied to your balance on the new credit account making your total balance owed equal $5,150 ($5,000 balance that was transferred PLUS the $150 balance transfer fee).

Now comes the good part! You now owe 0% interest for the 18 month period – as long as you make all of your payments on time, of course. Let’s see how this plays out while making $200/month payments – 21.99% credit card vs 0% balance credit card.

The I Was Broke. Now I’m Not. Team keeps a running list of 0% Balance Transfer offers HERE.

0% Balance Transfer credit card offers

Just by making one decision that takes less than 15 minutes, you can make a HUGE difference with your finances!

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