0% APR

Credit card balance transfers enable a person to pay off his old bills by opening a new credit card. It can be considered as a refinance, as your old credit card balance is paid off, and you start off with a new credit card balance with a new rate and terms.

Let’s look at a quick example

Let us suppose that you have an American Express Card with a balance of $1,000 and a 20.99% APR. Whereas you can get a new Visa card with a credit line of $5,000 and 0% APR for 12 months.

If you choose the balance transfer offer using your new Visa card, you’ll pay off the $1,000 balance which you had with American Express with your Visa credit card, and the balance on your Visa card will become $1,000.

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Tagged as: 0% APR, American Express Card, application, APR, balance, Balance Transfer Fee, Banks, Bills, citibank, Credit card balance transfers, credit line, creditor, due dates, fine print, loan, low interest rates, monthly payments, new credit card, Visa Card

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