How to choose the best credit cards for balance transfers?
It is a well-known fact that one of the best ways to manage debt on credit cards is by transferring the balance. Doing so will give users a fresh start where they can move their ongoing debt to a new service provider at a lower interest rate. Often, credit card users face a hard time while choosing between the offers available in the market. So, it is important to learn how to choose between different offers provided by various credit card companies. Let’s look at how we can choose the best credit card for balance transfers.
What are the important aspects to check while shopping for the best offers on credit cards for balance transfers?
- Introductory offer on annual percentage rates (APR) for balance transfers and purchases.
- Balance transfer fees and annual fees.
- Reward points and introductory offers.
Why is introductory APR so important?
- It is important because most credit cards for balance transfers offer 0% introductory APR. Thus, you can save some money on the interest charged.
- Some cards offer a minimum APR from the beginning. These cards are generally suitable for long-term use.
- Another reason why one should check the introductory APR period is that usually, the interest rates are quite high after this period ends.
Should I be worried about the balance transfer fee?
- Usually, credit cards have a minimum balance transfer fee. You may want to consider this charge, especially if you are planning multiple balance transfers at the same time.
What are some of the other introductory offers that you should look out for?
- Cashback: Many cards offer cashback. It could be as low as 1% or as high as 5-7%.
- Free credit scores: Credit scores such as FICO® Credit Scores are available for free on some credit cards.
- Protection or insurance: Some cards offer protection for a little deduction. You may want to consider these things if protection is one of your primary concerns.
What are some of the best credit cards for balance transfers?
- Amex EveryDay® Credit Card from American Express: It offers 0% APR for 15 months on balance transfers and purchases. There is no balance transfer or annual fee. You can get 10,000 reward points for purchases of up to $1000 in the first three months. Thus, it is one of the best credit cards for balance transfers.
- Discover it® Balance Transfer: With Discover it®, you get 0% APR on balance transfers for 18 months and 0% on purchases for six months. A balance transfer fee of 3% is applicable. It also gives a 5% cashback on all purchases made at gas stations, wholesale clubs, etc., until the user has received cashback worth $1500.
- Citi® Diamond Preferred® Card: The specialty of this card is the 21-month 0% APR period on balance transfers. However, these transfers should all be done within 4 months and a 5% fee applies for each transfer. A 12-month period of 0% APR on purchases is also available.
- Citi® Double Cash Card: The specialty of this card is the 21-month 0% APR period on balance transfers. However, one should make these transfers within four months, and a 5% fee applies for each of these transfers. A 12-month period of 0% APR on purchases is also available.
- Barclaycard Ring® Mastercard®: Barclays introduced this card with a variable 10.74% APR which is applicable on balance transfers, cash advances, and purchases. There are no balance transfer or foreign transaction fees on this card, making it one of the best credit cards for long-term use.
- Visa® Platinum Card from U.S. Bank: You get 0% introductory APR on balance transfers and purchases for a period of 20 billing cycles. A 5% fee is applicable for balance transfers.
- Chase Freedom®: This card gives you 15% APR on both balance transfers and purchases for 15 months. You will also get 1% cashback on all of your purchases.
It is essential to maintain a good credit rating before and after a balance transfer. While searching for the best credit cards for balance transfers, you should thoroughly research various offers and find out what works best for you.