We have 3 credit cards which, up until this past summer, were always paid off in full. This past summer there was a perfect storm of events (car trouble + family emergency) and we are slowly paying off our cards. Each card has a balance around 30-50% of its credit limit
Today in the mail we got an offer from one of our cards: balance transfer with 0% promotional APR through 2/21/15, 2% transfer fee, and "We will begin charging interest on these transactions on the transaction date."
For simplicity sake, let's say each card has a limit of 6K and a balance of 2.5K. If I were to transfer the full balance of my highest interest card using this promo, the cards would have balances of 5K, 2.5K, 0. I would then not use the card I transfered to at all, and would pay $450 per month for 12 months to pay off the 5K balance before the promotional APR expires. If I do this, will I avoid paying interest on the balance transfer? I am confused about the phrase "We will begin charging interest on these transactions on the transaction date." as it relates to the promotional APR. With the 2% transfer fee, I would pay about $50 which would be the equivalent of 1.5 months interest if I keep the balance on the current card.