Best Balance Transfer Credit Cards: Save Your Money
Hello Friends! Are you currently carrying a high balance on your credit card and are struggling to pay it off? Do you want to save money on interest payments and get out of debt faster? If your answer is yes, then you should consider applying for a balance transfer credit card.
A balance transfer credit card is specifically designed to help you pay off your existing credit card debt by transferring it to a new card with a lower interest rate. This can save you a lot of money in interest payments and help you pay off your debt quicker.
How Balance Transfer Credit Cards Work
Balance transfer credit cards come with a 0% or low introductory interest rate for a specific period, usually 6 to 18 months. During this period, you can transfer your existing credit card balance to the new card. By doing so, you will not have to pay any interest on your balance during the introductory period. Instead, you will only pay a balance transfer fee, which is typically around 3% to 5% of the amount transferred.
For example, let’s say you have a credit card with $10,000 balance and an interest rate of 20%. If you transfer this balance to a new card with a 0% introductory rate for 12 months, you will save $2,000 in interest payments over the 12 months. You will still have to pay the balance transfer fee, which will be $300 to $500, but this fee is much lower than the interest you would have paid on the original card.
Factors to Consider When Choosing a Balance Transfer Credit Card
Before applying for a balance transfer credit card, there are several factors you need to consider to ensure you choose the right card for your needs. These factors include:
- Introductory interest rate: Look for a card with a 0% or low interest rate for at least 6 to 12 months.
- Balance transfer fee: Make sure you understand the fee structure and choose a card with a reasonable balance transfer fee.
- Regular interest rate: Check the regular interest rate after the introductory period to ensure it is still lower than your current credit card.
- Credit score requirements: Check the credit score requirements for the card to ensure you are eligible for the card.
- Rewards program: Some balance transfer cards come with rewards programs, so if this is important to you, look for a card that offers rewards.
Top Balance Transfer Credit Cards
Now that you know what to look for in a balance transfer credit card, let’s take a look at some of the top cards on the market.
The Chase Slate card offers a 0% introductory interest rate for 15 months and no balance transfer fee for transfers made within 60 days of account opening. This makes it a great option if you want to save money on interest and fees. The regular interest rate after the introductory period is 14.99% to 23.74%, depending on your creditworthiness.
Citi Double Cash
The Citi Double Cash card offers a 0% introductory interest rate for 18 months on balance transfers, with a 3% balance transfer fee. After the introductory period, the regular interest rate is 13.99% to 23.99%, depending on your creditworthiness. This card also offers cash back rewards, with 2% back on all purchases (1% when you buy and 1% when you pay it off).
Amex EveryDay Credit Card
The Amex EveryDay Credit Card offers a 0% introductory interest rate for 15 months on balance transfers, with a 3% balance transfer fee. After the introductory period, the regular interest rate is 12.99% to 23.99%, depending on your creditworthiness. This card also offers rewards points for every dollar spent, with bonus points for using the card a certain number of times per month.
If you are struggling with credit card debt and want to save money on interest payments, then a balance transfer credit card might be the solution for you. When choosing a card, make sure you consider the introductory interest rate, balance transfer fee, regular interest rate, credit score requirements, and rewards program. And don’t forget to compare different cards to find the one that best fits your needs. With the right card, you can save money and get out of debt faster.
Thank you for reading this article and we hope it has been helpful to you. See you in our next interesting article.
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