What does it mean to have a credit card with a zero balance transfer?  Why might companies offer this to their customers?  Let’s take the first question to begin.  Many of the credit card companies will charge interest on the balance transfers that you make.  This amount is usually the standard annual percentage rate.  For example say you apply for a card that offers a 9.9% APR.  Well the balance transfer APR is going to be the same unless you find a credit card with zero balance transfer offers.  These are usually introductory offers which means you are only going to have the zero percent interest on the balance transfers for a specific period of time before it goes up to the annual percentage rate we were discussing before. 

To answer the second question there is only one answer really that fits.  The credit card companies compete against each other and in order to win your account they want to have something you are willing to apply for.  If a card doesn’t offer the introductory rate of zero percent interest on balance transfers you are not likely to apply for that card, but you will apply for the other card offering that very thing.  The length of the zero percent interest on balance transfers is going to differ as well.  This adds to the competition of the companies.  Some of the companies make the introductory offer for 60 days while others will allow for zero balance transfers up to 15 months. 

Obviously when you are shopping around for the balance transfer rates on credit cards you want to make sure you are getting the best deal.  Sometimes you might be looking at the length, but don’t forget that the annual percentage rate and terms and conditions are just as important.  You don’t want to be blinded by the duration of the introductory offer, especially if you won’t be able to pay off the balance in that amount of time.  In other words if you have a balance of 6000 dollars and you get the card with 15 months zero percent interest on the balance transfer you want to make sure you pay it off in that time, but if you can’t you need to look at the annual percentage rate.

If the annual percentage rate is going to be 20% or higher on the card after the introductory period is over then the card is not worth it.  The other thing to consider is the annual percentage rate on purchases.  If you intend to use the card on purchases and the interest rate is unfavorable then it is not worth the duration of the zero percent on balance transfers.  You want a card that works for you.  So if you need a lower interest rate overall, but have to sacrifice a few months then your best choices is the lower interest rate.  The idea for credit cards in the consumer’s hand is to make it work for you.  This means you don’t want to use the card until you have the balance paid off.