December 29, 2022Is a 0% APR Balance Transfer All It’s Cracked Up to Be? 

You’ve probably already heard the sweet siren song of the promotional 0% balance transfer rate. The trick is to decide whether offer an offer like this can work out for you without getting confused.  Follow these tips—and watch your step! This path might not be as enticing as it seems. 

Crunch the Numbers 

When you look at offers like this from big banks and credit card companies, it comes off as pretty tempting. After all, what could be better than paying no interest for several months on your debt? However, most credit card companies are not in it for your benefit. A discounted rate on a balance transfer is a hook, and you should know what the intentions are of the big bank holding the line.  

The most obvious disadvantage is a balance transfer fee, which is typically a small percentage of the total. Take the bills you are considering transferring and figure out how much interest you are paying on them each month. Make sure that the 3-5 percent that the credit card company may charge for the transfer is worth the savings you will have. PEFCU offers balance transfers with NO balance transfer fees!   

Beware the Fine Print 

While you are contemplating biting the hook, you may feel a tug encouraging you to read the fine print. Fine print is small because the big banks and credit card companies hope you will not actually read it. You must, because hidden inside it might be some unsavory elements, such as: 

  • Annual fees (whether you carry a balance or not) 
  • High interest rates (on new purchases or cash advances) 
  • Variable introductory rate periods (that are not specified until after approval) 
  • High penalties (for late or missed payments during the teaser rate interval) 
  • High interest added retroactively (once the introductory period has concluded)
  • Not all offers have these pitfalls, but many do. This is why getting a credit card from an institution you trust is so important. 

PEFCU’s Credit Card Offers These Great Benefits: 

  • NO annual fees 
  • NO balance transfer fees 
  • Low, fixed interest rates for purchases, balance transfers, and cash advances 
  • Rates lower than the national average 
  • Rewards program with unlimited points that don’t expire

Make a Bigger Debt Payoff Plan 

Unless you plan to pay off the balance you transfer before the promotional period ends, we recommend transferring your high APR balances to a PEFCU credit card, where you will have a low, fixed rate for the life of the card. That way, you can continue paying off your debt on your time without racking up interest charges.  

Visit for more information. 


We’re Here to Help! 

If you have questions on balance transfers or eliminating credit card debt, stop by or give us a call at 800-226-6673. 


Each individual’s financial situation is unique, and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.  

Federally Insured by NCUA 


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