Many offers are provided on credit cards by companies as a facility to their customers. During a particular period according to the credit card plan, customers are not required to pay the interest on any purchase made. This period may vary from plan to plan and provider to provider. Also, the customers having such balance transfer cards can transfer the balance to another similar type of account. For instance, if a person is nearing the end of his introductory interest free period, he can transfer the entire credit card balance to another balance transfer credit card. In this way, the person will continue to enjoy 0% interest rate.
The concept of balance transfer is quite simple. Although, when you are buying a credit card, look for a plan that provides a longer interest free introductory period. This period can be different in various credit card companies; there are some companies that provide 12-18 months interest free offers. If you apply for such credit cards, there is no need to think about repayment for a substantial period. But, when the introductory offer is nearing the end, make sure that you transfer the balance to another balance transfer credit card. Also, if you don’t find a long-term interest free periods offer for yourself, you can opt for the ones that offer 3-6 months. The only difference is the fact that you would need to transfer the balance to another card quite frequently.
Another important factor that you should consider before signing up for 0% interest credit cards is the other benefits that it offers. Always read and understand the offer carefully before taking any decision. Make sure that the introductory rates apply to balance transfers as well as new purchases. This will give you an added benefit in both, buying and transferring. So, if you are looking towards shopping for a new credit card or even if you want to transfer the balance from an existing one, make use of interest free offer periods and reap the benefits.
