Apply for a Balance Transfer Credit Card

Transferring an outstanding balance to a credit card that offers 0% or a low APR can be an effective way for cardholders to manage their debt. 0% APR on balance transfers means that no interest will be charged on the balance transferred to the card and the cardholder can focus on reducing the debt without having to consider paying interest as well. Most credit cards have an introductory 0% interest rate on balance transfers ranging from six to 12 months.

Some cards offer a 0% rate for the life of the balance transfer. However, there may be a minimum amount the cardholder is expected to spend on the card each month. There may also be a fee to transfer the balance even if no interest is charged, and cardholders should be aware that when the introductory offer terminates, interest rates will apply — often without warning.

The benefits of balance transfer credit cards are obvious and, if used effectively, can help reduce or eliminate debt. Cardholders should be aware of regular charges, including annual fees, and also note that if interest rates are applied after an introductory period, they may be above average.