I recently got an offer for a 0% balance transfer from a credit card. This is one I will have to say ‘No Thanks’ to.

(If you are not reading this post at www.howisavemoney.net or in your feed reader, it may have been stolen from my site.)

While a 0% balance transfer may seem like a great idea, it is just not worth it to me today.

0% balance transfer

Why I Said No

  • There is a 2% transfer fee.
  • Rate jumps to 21.24% after the temporary period.

These two factors make this a non-decision in my situation.

–There is a 2% transfer fee. It will cost me 2% of whatever I transfer just to take advantage of this offer. The only situation I can see this being a benefit is if I had a balance at a higher rate. Since I do not currently owe money or carry a balance at that rate I would be losing money.

–Rate jumps to 21.24% after the temporary period. If for some reason I was not able to pay off the transfer in 12 months I would be in a world of trouble. The rate climbs to an astronomical amount!

In the past, even when I carried a balance on something this would still be a steep transaction if I held it for more than 12 months. Today, when I do not have any balances it just does not make financial sense.

Please be careful and read all of the details when you get an offer. Sometimes the initial offer may look great but you should also consider what happens if you are not able to pay off the full amount in the specified time period.