I'm considering applying for another credit card with my existing bank. (It's a Platinum Credit Card if any one is interested).

The site states: 0% on balance transfers for 16 months

What does this actually mean in layman's terms?

Also, what would be the benefit of having this on my card? Is there any? Currently I only have one other credit card on a student account, but have various options to upgrade and was considering this.

Much obliged for further information.


2 Answers 2


The benefit is that you can reduce the interest you pay to zero for the specified time. Every penny goes toward reducing your balance. Isn't that nice? :)

However, you must make absolutely sure that you make the payments on time! Likely your interest rate will jump tremendously if you miss. Then you'll be hating life.

Regarding balance transfer fees that Benjamin mentions: one I heard recently was 3% of the transfer, or $5, whichever is greater. If there is one, it will be something like that.

Zero-percent balance transfers can help you reduce your debt if you keep on top of them. They are secretly waiting for you to screw up so that they can make money off of you, but you can win if you're careful.

  • That helps a lot, thank you! Sounds like something I personally don't need to worry about at this point in time, but nice to know anyway.
    – calum
    Dec 29, 2010 at 14:47
  • 3% is what I see now. Not long ago, it was 2% and a few came with a cap, as low as $50, so a $20,000 transfer was really 1/4%. May 21, 2013 at 3:06

It means that you can transfer the balance owed from another card and put it on this card, and they won't charge you interest on it for 16 months (essentially giving you 16 months to pay it off before you have to pay interest).

Read the fine print, though; many cards, while they don't charge interest on balance transfers, do charge a balance transfer fee so they can still make a profit.

  • All offers I have seen for 0% transfer included 3% fee for transfer. I heard there are free transfer offers, but those are very rare.
    – StasM
    Dec 29, 2010 at 22:31

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