Browsing around and conducting studies on various credit cards to sign up for? You’ve more than likely have stumbled upon credit cards that offer you a 0% interest balance transfer. You’re probably wondering, “what does that even mean?” In this post, we’ll inform you on the Benefits of a 0% Interest Balance Transfer Card! Benefits of a 0% Interest Balance Transfer Card
Discover Bank is available nationwide. See below to Benefits of a 0% Interest Balance Transfer Card. Benefits of a 0% Interest Balance Transfer Card
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Table of Contents
Benefits of a 0% Interest Balance Transfer Card
- What is a zero percent balance transfer offer?
- Credit card companies that offer credit cards with an introductory 0% balance transfer for a limited time offer new card members a way to help relieve debt. By taking advantage of these introductory rates, you can have your existing balance on other credit cards paid off by transferring it to a new card and will not accrue interest on that transferred balance for the duration of the introductory 0% annual percentage rate (APR) offer. Benefits of a 0% Interest Balance Transfer Card
- The introductory 0% balance transfer rate is temporary. The duration of the introductory 0% balance transfer offer varies based on individual offers. After this introductory period, the remaining transferred balance is subject to the standard balance transfer rate for the card. You should pay attention to the duration of the introductory offer because, once it is over, there will be an increase in your interest rate. Benefits of a 0% Interest Balance Transfer Card
- It is always important to familiarize yourself with the terms and conditions for any credit card. For example, in some cases, new purchases on cards with an active 0% balance transfer offer will incur interest at the standard purchase APR, unless the 0% offer applies to new purchases as well. The amount transferred through such 0% balance transfer offers is often subject to a one-time balance transfer fee. This fee, typically 3% – 5%, is added to the new balance.
- Why Apply For A 0% Balance Transfer?
- A 0% balance transfer can be an effective way of consolidating or reducing debt. 0% balance transfers can help you to save on interest payments you are making on your existing credit card. Benefits of a 0% Interest Balance Transfer Card
- For example, consider you owe $3,000 on a card with an APR of 15%. If you continue to pay interest while reducing the balance by $215 each month, you will still have accrued $525 of interest over the 14 months it took you to pay off the balance, assuming you make no additional purchases. Benefits of a 0% Interest Balance Transfer Card
- But, let’s say that you accepted a 0% balance transfer offer of 14 months with a 3% balance transfer fee. You would pay off your old balance of $3,000 and would incur a new balance of $3,000 plus $90 in balance transfer fees on your new 0% balance transfer credit card. Because of the 0% balance transfer offer, you could pay off your new balance in 14 months and save over $400 in interest assuming that you make no additional purchases and make monthly payments of $221.
- It is important to remember that, no matter how much you are struggling with your debt, you should continue to make all of your payments on time because only applicants with excellent credit will qualify for introductory credit card offers like 0% balance transfer. And, for those looking into taking advantage of a 0% balance transfer, consider making a comprehensive plan for eliminating credit card debt that focuses on maximizing income, minimizing expenses, and paying down the entire credit card before the introductory rate expires.
Discover Bank Online App
- All your banking, in your pocket or purse. Download the Discover Bank Online App today via iOS or Android.
Still Have Questions?
- Reach someone helpful 24/7. Call 1-800-347-7000! Ask to be connected with the Discover Bank Online Security Center.
With the Discover Cashback Debit Account:
• Earn 1% cash back on up to $3,000 in debit card purchases each month, which lets you earn up to a total of $360 Debit Card Cashback Bonus per year.
• Anyone can open a Discover Cashback Debit account online
• No monthly fees or monthly balance requirements
• With over 60,000 no-fee ATMs in the U.S., Discover is always nearby.
• Move money easily and securely with just a few clicks or taps (transfers to existing discover accounts are immediate)!
• Manage your account and avoid late fees by paying bills online.
• Deposit checks on the go with your phone or automatically with direct deposit.
Hopefully this post regarding the Benefits of a 0% Interest Balance Transfer Card answered any questions that you may have had. Keep in mind that this post is for educational purposes and is not a substitute for professional advice. Let us know if it did in the comment section below or help add onto our list! Let us know about your thoughts and experience with Discover Bank Online in the comment section below! If you’re interested in more info regarding Discover Bank Online offers, check out our full listing of Discover Bank Online Bank Deals, Offers, Bonuses, and Promotions. Be sure to check back on BankDealGuy for more bank deals! How Do I Dispute A Transaction FAQs
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