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Not all interest free balance transfer provides the solution for credit card users who have a huge debt transfers. It is wise for the credit card users to consider some simple aspects before making the decision to transfer their balance to another company.

1. What is the “grace period” offered by the other company?
Grace period can be defined as the period in which the company allows the 0% interest rate to remain. This usually ranges from six months to one year. If you have a large amount of debt in your hands, it is better to choose a long term but low interest plan, compared to the 0% interest plan which has a shorter duration. However, if you feel that you can clear your remaining debts within the period, by all means go for it.

2. What is the balance transfer fee?
Most credit card charge a balance transfer fee. This is the percentage of the amount of debt you need to switch to the card. The fee usually ranges from 2% to 3 % of the balance transferred which is a serious consideration before agreeing to sign up to the plan. For example if you are paying an interest rate at 16%, then the balance transfer fee is a small amount compared to the interest rate you are currently paying.

3. Are there any hidden costs to this transfer?
Most credit card users don’t realize that some banks contain hidden charges. There is a fine print attached with the hidden charges. Some banks actually charge the transfer fee based on the percentage of balance transferred. If the balances that you have transferred are thousands of ringgit, you may end up paying a few hundred ringgits.

4. Is there a high annual fee or joining fee?
Credit card companies are already earning a profit from your transactions. So it is wise for the credit users to not let them have the upper hand in your transfers. Therefore choose a company which has a reasonable annual or joining fee.