Balance Transfer Credit Cards
Are you in the market for a credit card with no interest to transfer your high-interest debt to?
Read on to learn more about how balance transfer credit cards can help you. Balance transfer credit cards are cards or accounts that allow you to transfer balances from one account to another. These cards are particularly appealing as most balance transfer credit cards offer an introductory rate of 0% APR or zero interest for a specific amount of time.
When you use a credit card, it is easy to rack up a balance, leaving you in a position where you begin to accumulate debt, making it hard to pay off your card balance. Many interest rates of credit cards tend to be over 16% on the monthly balance adding to the challenge of paying off debt. With a balance transfer credit card, transferring the balance of a high-interest rate credit card to a balance transfer card with a 0% interest rate could save you money and help you to pay off your cards much faster.
When Should You Use a Balance Transfer Credit Card?
A Balance transfer credit card is a solution for when you have a balance on a high credit card or on multiple credit cards that allows you to transfer the balance to a balance transfer credit card and benefit from the 0% interest most balance credit cards offer. It allows you to save money and simplify the repayment process by consolidating your debt and paying it off quickly without having to work against the high-interest rate.
Using a balance transfer credit card also comes with some added benefits. In addition to lower payoff rates, some balance transfer cards offer benefits and the ability to earn rewards on regular purchases. Your credit score will be improved by opening a new card, increasing your credit utilization ratio.
Methodology for Balance Transfer Credit Cards
After gaining approval for the balance transfer card, the process is simple. You want to be sure you understand how much in fees you will owe with the balance transfer and that you do not go over the credit limit before you request a transfer. The next step is to initiate the transfer with the new credit card company by calling customer service. You will have to share the information with the customer care representative. It can take time to transfer the balance, so you will need to continue to pay the existing balance on the original credit card account until the balance transfer is confirmed on the other card.
Top Picks for the Best Balance Transfer Credit Cards of 2022
A balance transfer card is a powerful tool you can use to pay off your credit card debts, allowing you to save money on interest ensuring your money is going towards the principal balance. Choosing the best balance transfer card is knowing the benefits each card has to offer, along with how long you get for the 0% interest.
Most balance cards will charge a balance fee, and you will want to ensure you are getting the most for your money when you select a card. You will want to determine the debt you want to transfer plus the transfer fees and figure out how many months you will need to pay off your balance. Here are five of the best balance transfer credit cards of 2022 to help you with your debts.
Chase Freedom Unlimited
Annual Fee: $0
Intro APR: 0% for 15 months
Regular APR: 14.99% to 23.74% after
Balance Transfer Fee: 3% or 5$ minimum
The Chase Freedom Unlimited offers 0% APR over the first 15 months and, depending on your credit, 15% to 24.74% after the 15-month introductory period. In addition to the 0% interest, Chase offers 1.5% cashback on everything you spend within the first year, 6% cashback on travel purchased with the cards, 4.5% cashback on drugstore purchases and restaurants, and 3% on all purchases (up to $20,000 in the first year).
U.S. Bank Visa Platinum Card
Annual Fee: $0
Intro APR: 0% for 20 billing cycles
Regular APR: 14.49% to 24.49% after
Balance Transfer Fee: 3% or 5$ minimum
The U.S. Bank Visa Platinum card offers 0% for 20 billing cycles with the option for a flexible due date to fit your needs. The card does not have rewards for purchases, but it does come with built-in cell phone insurance up to $600 with a $25 deductible for up to two claims. The lengthier payoff time with a 0% interest makes this a balance transfer credit card if you only want to use it to pay off debts.
Discover it Balance transfer
Annual Fee: $0
Intro APR: 0% on balance transfers up to 18 months and purchases up to 6 months
Regular APR: 11.99% to 22.99% Variable APR after
Balance Transfer Fee: 3% intro balance transfer and up to 5% on future balance transfers
With the Discover it Balance Transfer card, you get up to 18 months to pay off balances with the 0% interest rate. The Discover card rewards 5% cash back quarterly of up to $1500 in purchases and 1% after the first $1,500 on everyday spending.
Citi Diamond Preferred Card
Yearly Fee: $0
Intro APR: 0% for 21 months for balance transfers and 0% for purchases up to 6 months.
Regular APR: 13.99% to 23.99% variable APR after
Balance Transfer Fee: 5% or 5$ minimum
With an attractive balance transfer card and 21 months to pay off balance, with no interest on balance transfers, is the Citi Diamond Preferred card. Citi offers a variety of perks just for holding the card, such as special access to concerts, sporting events, and dining options. However, there are no cash back rewards for this credit card.
Wells Fargo Reflect Card
Yearly Fee: $0
Intro APR: 0% for 18 months
Regular APR: 12.99% to 24.99% variable APR after
Balance Transfer Fee: 3% or 5$ minimum if balances are transferred within 120 days of the card opening and 5% after the card opening.
With the Wells Fargo Reflect card, you can get 0% APR for the first 18 months with an intro APR extension of 3 additional months as long as you make on-time payments during the intro and extension periods. There are no cashback rewards with this card, but with a growing trend, this card offers $600 in coverage two times per year on your cell phone as long as you pay your bill with the credit card.