How to Make the Most of Your 0% Balance Transfer Credit Card to Pull Out of Debt

How to Make the Most of Your 0% Balance Transfer Credit Card to Pull Out of Debt

A majority of credit card users don’t utilize 0% APR balance transfer, and for some of them, it’s not bad. Alternatively, a balance transfer worth 0% can help you surge and remain on the right path even after committing a few financial mistakes during the past few years.

You may get out of debt much faster and more effectively after seeking the balance transfer benefits. You must be careful about not spoiling your detailed planning due to the pitfalls and temptations that come your way. You must keep it in mind while selecting your credit cards. This year the American Express essential card was named one of the best balance transfer cards in Canada. You must do your own research and find out balance transfer offers that come with 0% introductory APR.

How to use your 0% balance transfer credit card for getting out of debt

Tips to avoid debt and find a solution to your financial needs are as follows:

1. Avoid Taking Cash Advances

While applying for credit cards, you must be careful about avoiding cash advances. So, you must read the fine print carefully. Cash advances are mostly associated with high rates of interest and demand a few major fees. Few of the credit card lenders tend to issue checks pertaining to cash advances; you’ll often find them coming in envelopes that are placed against one another.

You must keep yourself from opting for a cash advance, so you must ensure you have the right check in hand. Cash advances aren’t often your right solution and you mustn’t use your credit card for this. Experts don’t recommend them at all.

2. The Credit Lines Ought to Remain Open

You mustn’t close the line of credit and protect your credit score from getting hurt. You’ll achieve a lower percentage of credit usage by maintaining your unused and open credit line. However, availing a balance transfer offer will show a 50% credit usage on your new card even if you don’t plan on using the existing card ever again.

3. Maintain Proper Records

You must gain a vivid and detailed picture of your financial situation right in front of you if you really want a balance transfer to help you out of debt. You must consider factors like your payment deadlines, payment details, the period of introductory promotion, and your current balance in order to achieve this picture. You’ll be able to check out your low-rate loan by opting for a convenient option like online credit banking.

You must look out for discrepancies. However, in order to avoid them, you must check the agreement terms of your balance transfer offer. You may even choose to confirm the interest-free repayment date with your lending institution when the introductory promotion nears its end.

Bill payments

4. Make Timely Payments

Late payments can certainly lead you through a mess involving your balance transfer. 0% balance transfers aren’t your cup-of-tea if you can’t live up to your payment due dates. You may end up paying much more in the end if you let the interest amount and credit card fees to accumulate.

5. Keep your Card in the closet

Put your card away after you’ve transferred the balance to your new card. You must control your urge to buy additional stuff on your card. 0% balance transfer is one option to gain an extra breath, meet your debt and move ahead. It’s not an option to dig deeper down your debt.

Final Words

Customers are known to commit a few mistakes thereby providing plenty of profit-making opportunities to credit card companies that offer 0% balance transfers. You may find yourself trapped in debt in spite of putting your best efforts if you aren’t that careful. You may simply take the advantage of balance transfers as you take decisions more responsibly by following one or more of the steps mentioned above.

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