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  • OT 0 intrest tranfers ?

    A lot of credit cards are offering 0 intrest for one year on transfers. What the catch? This sounds like free money.

  • #2
    Read all the fine print in the contract. If you so much as scratch your balls the deal is off. Those deals generally attract people with high balances, the preferred type of customer. If you are late by even one day or can't make the minimum payment just once the maximum rate immediately kicks in.
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    • #3
      Ive been using offers like that to lower interest rates on my cards. it works great! all you have to do is just make sure you make the payments. i always try not to borrow more than what i can pay off in a year. a couple card companies made the mistake of offering me deals like that for transfer balances.. difference was that they offered 3.9 percent until the balance was paid off!! boy i jumped on that right away.

      i love changing 15 percent interest to 0, or 1.9, or 3.9 percent.

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      • #4
        Switching card companies too many times within a certain period will lower your credit rating even if you always make your payments.
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        • #5
          Geez, I get 2-3 of those offers every week. Use it to negociate a lower rate for your prime card if you cary a balance. If you've had a card for a while, call them and ask to lower the rate. Keep in mind that many of the Zero rates are for transfer balances only. Any new charges could be at a much higher rate. Also, payments could be applied to the transfered amount first and new charges will accumulate interest at that higher rate. Read it carefully.

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          • #6
            also guys they can raise the rate on that card if it even looks like to them you are carrying to much dept to income ratio IE: you get thier fancy low rate card and you or your spouse is laid off work and your income drops but you feel your Ok and still make all your bills each month. They check your credit report about every 60 days and if they feel your in a bind they will jack your intrest every month till it maxes out..... Happened to us and we never missed any payment nor were we late with any. We called and ask to have the rate lowered... they said noway cuz they are going to get every penny they can till we defaulted on the loan.

            So I finished the remodel on the kitchen and refinaced the house and paid off those fooking cards. now we pay cash or forget it.

            Scott

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            • #7
              I am selfemploied and draw house plans for a living. On 9-11 I went from having too much work to keep up to having only enough to bearly scrape by. About that time my Wife lost her ability to walk because of an unknown medical condition. I did not have any health insurance because without being on a group plan insurance would not cover any pre-existing condisions and my wife has a lot of pre-existings condisions. I could either aford health insurance or aford to pay my wife's medical bills which use to average about $350-$400 a month, but not both. Suddenly my out of pocket medical expences for my wife went from hundreds of dollars a month to thousands a mouth. Coupled with a greatly reduced income it did not take long to go through our life savings. "That MRI (@ $3000.) was inconclusive, we need to do another."

              Anyway I ended up with $8,000 on a zero interest for a year credit card. When the year was about up I rolled the remaining ballance over to another zero interest for a year card. I think I have done that about seven times now. A few of the times I had to add a thousand or two to the ballance. Hopefully, I will have it paid off by the next time the zero interest is about to expire. So far I have paid exactly ZERO INTEREST. Last year, credit cards paid me about $500. through cash back bounous. However, I am very careful to make sure I pay each credit card bill in plenty of time. I have noticed about once a year a credit card bill gets "lost in the mail" but I keep track of them and make sure they are paid on time anyway. Oh, by the way, I never use the zero interest card unless I have rolled the ballance to a new card. Gary P. Hansen
              In memory of Marine Engineer Paul Miller who gave his life for his country 7-19-2010 Helmand Province, Afghanistan. Freedom is not free, it is paid for with blood.

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              • #8
                It can be but as stated you have to read all the fine print! Not all offers are the same...I've had vary good luck with these offers and have used them to advantage...I've even got a %1.99 'till paid in full that I'm earning %5.10 at ING direct in laddered CD's. Of course I have to pay taxes on the %5.10...

                Not only can your rate return to regular with a fluctuation in your credit score...but if you screw up a payment ANYWHERE even another card company you can end up with a penalty rate of %24 or so.

                The main trap in low rate cash offers and balance transfers is what I call "burying your balance" there's pretty much always a clause that says they will allocate payments to lower rate balances before other balances...so say you have a regular rate balance of $400 at %9.99 and you take a 0% balance transfer of $5000...any payment you make will only be applied to the %0 balance, in effect the $400 is "buried" under the $5000 balance and is earning the credit company %9.99. You have to keep track of your cycle dates and time any transfer to avoid this. As well you must not use the card for anything else during the term of the advance/transfer.

                Some cards (Discover that I'm familiar with) require as a condition of maintaining your account in good standing (and hence your promotional rate) that you use it a minimum number of times per year...obviously any charge you must make to maintain your standing will be "buried" under your promotional balance.

                Then of course there are the fees...they used to be a pretty standard 3% up front minimum $5 max $50. Many have no max now.

                There ARE great promotional balance transfer/low interest cash offers out there...but you have to be in to playing the game and you should have enough cash on hand to immediately pay off the card in case something goes awryl. If you're not into the complexity...then I would just use cash.

                Originally posted by greyhawk200
                A lot of credit cards are offering 0 intrest for one year on transfers. What the catch? This sounds like free money.

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