I believe zero percent balance cards are godsend, especially for those who have an outstanding credit card balance with high interest rates. With 0% balance transfer cards, you can transfer your existing balance to your new card and enjoy interest-free payments, sometimes for up to 2 years! Imagine how much you would save if you have $5,000 credit balance with 20% APR? It would take you a long time to pay off that balance if you simply made the minimum payment only. But with these zero percent balance transfer cards, you will pay off your balance much quicker by not having to pay any interest.
But with these cards, you have to be on top of all your payments because if you’re late in making even one payment during the promotional period, you will lose your 0% APR and they can increase it to up to 29.99%! If this happens, then you will be in worse situation than you were before using your new balance transfer card. I recommended a balance transfer to a friend and she loved it. She was saving a lot of money by not accruing any interest on her credit card balance. But one day, there was a miscommunication with her husband and they ended up missing a payment. The penalty for missing the payment was 29.99% APR indefinitely, which was almost twice the APR they originally had prior to using their new card!
Allow me to introduce you Citi Simplicity® Card! This card is different from other traditional balance transfer credit cards because there are no late fees associated with it! That also means there are no penalty APRs for missing a payment! Had I introduced my friend Citi Simplicity® Card instead of the other card she signed up for, then she and her husband would be in a different financial state than they are now. Don’t get me wrong though. This card does not mean you can be irresponsible with your payments. Many people avoid using credit cards at all costs because they simply cannot trust themselves with them. And if that’s how they feel, then they are doing the right thing. All credit card users need to be über responsible. Read all of the fine print and terms and conditions of any new credit cards you sign up for, especially when taking advantage of some sort of promotion. I can’t emphasize that enough. But the Citi Simplicity® Card provides that extra layer of peace of mind just in case you do happen to miss a payment or two. Currently, you can enjoy 18 months of 0% APR on transferred balance and purchases.