Balance transfer credit cards are one of the favorite financial instruments of many consumers. Over the years, credit cards with 12 month or more 0 APR terms have served many well, netting the users substantial balance transfer arbitrage profit in the way of high yield bank interest income, and cushioning them during difficult financial times by providing a way to get quick interest free loans.

During tough economic times these credit cards could help you bridge temporary budget shortfalls, saving you from having to turn to high interest, high risk alternatives like payday loans.

Around the year 2000 and shortly after the collapse that followed the terrorist attacks of 9-11, the U.S. economy ushered in a Renaissance period of sorts in terms of credit offers. During that period of time, lucrative pre-approved 0% APR, no interest credit card loan offers were everywhere, including college campuses, stuffed in mailboxes, and everywhere online.

In order to make sure they didn’t miss out on their share of the very profitable credit card market, the major card issuers promoted all sorts of credit cards with 12 month 0 APR teaser offers to attract customers. The idea was to tempt new applicants with introductory offers and ultimately turn them into long-term cardholders and spenders who carry balances forward. Eventually, this led to fierce competition among the card companies as each one introduced its own versions of the classic credit cards 12 month APR. The competition led to increases in the promotional zero percent period, causing it to grow from an initial 6 months to 12 months or longer.

Eventually, some cards even extended the zero percent balance transfer periods indefinitely, leading to what ultimately amounted to a zero percent balance transfer for life credit card offer. The only thing keeping the balance transfer tidal wave in check was the existence of balance transfer fees, usually set at the rate of three percent of the total amount transferred.