As the credit card companies, which took a hit the last 2 years with the entire credit mess, start turning profits, many are offering deals which seem to be quite nice for consumers. Over the last few months we have seen a large number of companies begin offering 0% rates for up to a year. Banks and credit card companies are feeling more confident in the economy, as well as credit markets, therefore are trying to entice consumers to start borrowing once more.

The typical 0% balance transfers are one of the top ways these card companies bring in new clients. Who can say, “no,” to a 0% APR for a year when their current APR may be 10% or even 20% currently? The problem is, that many borrowers still do not read the fine print. Often times a balance transfer will cost a borrower more than they may save in the long run. Although the 0% rate seems like one of the best credit card offers you will ever come by, after that first year, rates could reset to a level higher than you were paying with the older card. In addition, you will have a fee for leaving the old company as well.

Having said this, as long as you understand the contract you are getting into when you do a balance transfer, and calculate the numbers correctly, you can, and often will save a ton of money. Just make sure you know what you are getting into before diving head first into another credit card company, and all their rules. As the economy continues to get better, you likely will be able to find lenders more willing to lend, however, rates will eventually go up. Timing is everything in this market.