Applying for a no balance transfer fee credit card has become very popular. During these difficult economic times the consumers are trying hard to cut expenses and for people in credit card debt it can be mean a significant amount of money saved by reducing the interest rates on the credit cards with large balances.

Many cards offer a 0% introductory offer for a period of time and that means you can apply the entire payment to the principal and as a result significantly reduce your debt as long as you maintain the same monthly payment as if you would have been charged interest.

The selection of cards with no balance transfer fee is decreasing, but even if you are charged a fee it can still be a good deal. The standard transaction fee is 3%, but the rate on your current card is probably closer to 10% APR. That means if you have a $4000 balance that is being transferred you will be saving almost $400 in interest the first year without paying a fee, but even with the fee you are still saving over $250 compared to your current card.

This is a very good deal for the consumer, but it is important to stay disciplined during the introductory period. If you read the fine print it will indicate that if you fail to make a payment on time you will be charged the default rate, which is over 20%. If this happens you are not only paying a higher interest, but you have also increased your balance by 3% if you were unable to find a card with no balance transfer fee.

You also need to remember that the introductory offer will expire at one point. Unless you plan on paying off your debt within this period it is important to find a card that offers the same or lower rate than your current card.

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