Clark Howard: Zero percent
JACKSONVILLE, Fla. -- If you're sitting there with a significant balance on your credit cards, something old is roaring back again. That's zero percent balance transfers.
You know that was so big in the middle of the last decade where one credit card company after another were falling all over themselves regardless of your credit standing offering you the ability to balance transfer.
Today the standards are tougher. You have to have a decent credit score, not an outstanding credit score, but a decent credit score. You can in fact get typically a one year free lunch on the balance transfer.
But let me tell you specifically what you need to look for. Does the balance transfer offer come with a big upfront fee? That's a way of front-loading interest to you.
You want to figure out if whatever fee you're getting charged upfront is going to save you a lot of money versus the interest you're paying right now. And second, use that one-year period to pay down that debt hopefully to zero balance.
For more information go to ClarkHoward.com.
Watch Clark Howard weekday mornings on Action News This Morning on FOX30 beginning at 7 a.m.
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