Are you considering a 0 balance transfer no fee card as a means of paying off your current credit card debt faster? Do you plan on making purchases with your new 0% interest rate card? If so, you might want to ensure that you completely understand the specifics of your new card prior to adding any new purchases to your card. Making yourself familiar with exactly how your card’s issuer processes payments onto your card can help you to make the most of your new interest saving tool.
If you plan on making purchases on your 0% interest rate credit card in addition to transferring your existing balance to your new card, you will definitely want to pay attention to payment processing policies. While you might be hoping that your payments will automatically be processed against any interest bearing purchases, this might not be the case. Depending upon your credit card issuer’s policies and procedures requirements, they might actually have to apply your payment to your lowest interest rate transactions instead. Familiarizing yourself with the requirements pertaining to your specific card will allow you to make the wisest use of your card. If you are at all unsure of the exact process that your credit card issuer will utilize, request that written documentation be sent to you so that you can study procedures prior to transferring your current credit card balance.
Another factor that can influence your credit card payments is processing time. If you are considering transferring an existing balance onto a new credit card with a 0% interest rate offer, you will want to pay very close attention to actual payment processing times. If you decide to complete a transfer fairly close to your payment due date, you just might find that your balance transfer does not negate the requirement for a final credit card payment. If the financial institution offering you a lower rate does not process your transfer in a timely manner, your original credit card company might still require a final payment from you. Some transfers can take up to two weeks to process, so factor this time delay into your balance transfer plans. If your transfer is completed sooner than expected, then you are slightly ahead of the game since you will have budgeted for a final payment to your previous financial institution. If you do not end up having to make a final payment, you can put your budgeted payment towards your new card instead. Either way, you come out ahead simply by paying attention to payment processing times.
Online Payments Versus In Person Payments
If you regularly complete your banking transactions online, you will want to investigate payment-processing times for online payments. There can sometimes be a significant difference in processing times when you compare online payments to payments made at your local financial institution. If you are assuming that the time it takes for your credit card balance to be updated is the same for both types of transactions, you just might be in for a bit of a surprise. If a time delay will impact upon whether you are meeting the terms of your credit card agreement, you might want to err on the side of caution. It is far better to make a payment at least a week early than to take a chance on losing your 0% interest rate.
Another factor that can impact upon processing times for your credit card payments is whether a statutory holiday falls near your payment date. This may not always be an issue, but if you are cutting it close to your payment due date, a single day can cause your payment to be late. You can avoid this potential disaster in two ways. The most reasonable course of action is to make an extra effort to have your payment in early. If this is not possible, contact your financial institution to confirm processing times due to statutory holiday delays.
These are just a few of the factors to be aware of regarding payments on a 0 balance transfer no fee credit card. Paying attention to these variables will ensure that your happiness with your new card does not wane.
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