0 Balance Transfer Credit Cards a Rip-off?

You’ve probably seen all the 0 balance transfer credit cards on offer and you’ve probably seen the “amazing deals” and numerous special offers, but is it for real or is it a scam? When you think about it, a credit card is basically like  loan and if a bank or credit card company can offer you a card with zero percent interest then that’s effectively a free loan. The fact that you can now get rather large credit card limits means that you can, in theory at least, get a rather big loan for no interest. Is that for real or is there a catch?

Well, 0 balance transfer credit cards is not a scam. Its for real and its something that’s heavily regulated. Any bank or credit card company that steps out of line will quickly be taken care of and the federal protection of the consumer is very strict. I don’t think you need to worry about the concept being a scam at all. What you should be worried about however, is the use of these credit card offers.

The 0 balance transfer credit cards can be a real life saver. If used correctly is can give you a much needed lifeline. If you are in a position where you cannot make your monthly repayments on your existing credit card then I would suggest you look at this very closely.  0 balance transfer credit cards allow you to transfer your existing balance from one or more credit cards unto a new card and on the new card there will be no interest BUT only for a fixed term.

Its all fine and well as a short term solution because when the 0% term runs out you will automatically revert back to the standard APR. This is usually where the catch comes in since the standard rate aint cheap. Since the bank effectively gave you a free loan they need to make their money back and they count on you staying on with them and continue your debt and obviously your monthly repayments with them.

The real secret to make these offers work is to be extremely diligent with your money management. 0 Balance transfer credit cards is a great lifeline but it is by no means a long term solution. You need to use it to buy you some time while you make more permanent plans to get rid of your credit card debt altogether.