Comments on: 0% Credit Card Basics – 0% Purchase vs 0% Balance Transfer Credit Cards

By: Benjamin Bankruptcy

Benjamin Bankruptcy — Thu, 07 Oct 2010 00:33:50 +0000

in Australia they’re about to legislate to have any payments go on the highest interest portion of a “balance transfer”

By: Marcia Acioli

Marcia Acioli — Mon, 26 Jul 2010 02:11:18 +0000

Couple years ago I made money transfer from 3 credit cards to another. By that time I understood that would be charged 3.9% for each amount transferred just one time on the first month. I didn’t know that it would be also charged finance charge for the money transferred every month until the end of the promotion date. Please tell me. Is it correct or not?

By: Dave

Dave — Fri, 14 May 2010 01:04:11 +0000

Well the real 0% credit card is the debit card. All the other types are really just marketing spin to try nd attract new cutomers. With a debit card, the fact that you have a linked bank account is enough to make it worthwhile for the bank – rather than charge interest.

By: Sandra

Sandra — Sun, 11 Apr 2010 00:05:33 +0000

Thanks for the rundown on these 0% credit cards. Most people seem to talk about the 0% balance transfer type, why is that? Is 0% purchase credit cards just not as popular, or is it not as useful?

By: MoneyNing

MoneyNing — Thu, 25 Mar 2010 00:29:16 +0000

At 9.4%, you won’t be able to pay off your credit card debt in 15 months. Therefore, it would seem like 9.4% per year at 15 months is more than 3% up front. That’s why you should transfer your balance to the Citibank card.

I’m not sure which card you are looking at, but consider the Citi Platinum Select MasterCard card up top. Their 15 month 0% balance transfer credit card offer is the best in the industry right now.

By: Jard

Jard — Wed, 24 Mar 2010 23:54:33 +0000

Please help. I have $13K in credit card debt. The APR on my current card is 9.4%. I’m thinking of applying for the 0% balance transfer for 15 months at Citibank, but can only pay $400 a month. Considering that there is a 3% transfer fee, should I go for it? I’ll try to put in more money a month, but $400 is my budget for credit card payment. I just want to pay off my debt as fast as I can. Thanks.

By: Joshua

Joshua — Sat, 23 Jan 2010 19:31:24 +0000

The best way to take advantage is definitely to use a 0% purchase credit card to buy a big priced item (like a TV or something), and then once the intro period is over, transfer it to a 0% BT credit card.

If they are both 12 months, it’s pretty much a two year loan which is REALLY nice. If you can time that with a 12 month no interest loan from the retailer too, then it’s like gold.

By: Billy Wong

Billy Wong — Sat, 23 Jan 2010 19:08:56 +0000

I never really look for a credit card with these perks but whenever the purchase benefit is available, I will take a look and use it, but only if I already want to buy something. Then I will just pay the minimum and get a interest free loan. It’s probably not much but free money is never a bad deal.

The people that get into trouble are those that either forget to pay the minimum, don’t know that they need to, or don’t have to funds to pay it off after the intro promo period expires causing the rates to jack up to crazy levels.

Avoid those three cases and you will be on your way to good times.

By: Charles

Charles — Fri, 22 Jan 2010 00:15:06 +0000

I actually find that the 0% balance transfer credit card perk helps you reduce debt while the 0% purchase helps you increase your debt.

They are both good if used wisely but one is more prone to abuse than others.

By: Tim

Tim — Thu, 21 Jan 2010 23:59:40 +0000

Thank you for pointing out the difference. I always feel like everyone just groups them together like it’s the same thing, and it’s nice to see that someone would at least break them out for the sake of explanation.