What is a Balance Transfer?
A balance transfer is moving high-interest debt from one credit card to another that provides a low introductory APR, making it straightforward to pay off the balance without collecting more debt. Various credit cards are applicable there that provide low or minimum introductory balance transfer APRs for a particular period. Once the initial period terminates, gradually after around 12 to 18 months, the card’s daily APR applies.
- Introducing a 0% Balance Transfer
- A 0% balance transfer is whenever a card imposes no interest on balance transfers, typically for a set period. In numerous cases, the balance is mandatorily moved/transferred between 60 to 90 days once you open the account for it to be capable of the 0% APR., which is gradually an introductory rate. Most cards that provide this rate will charge an upfront fee/price for the balance transfer.
- Balance Transfer Fee
- A credit card may charge a fee whenever you get your balance over from another card. For instance, a standard balance transfer fee or price might be 3% of the balance or $10, whichever is considerable. Not all balance transfer credit cards ask for or charge a balance transfer fee.
Advantages and Disadvantages of Utilizing Balance Transfer Card
Like other types of credit cards, balance transfer cards have advantages and disadvantages. Please have a look at the following points as written below:
Advantages
- Consolidate Debts: If you transfer balances on various cards, you can conveniently transfer those balances across one card to conveniently your financial situation. It makes it more straightforward to tackle or resolve your debt.
- Save Money: Suppose you have a high or maximum debt that you cannot pay off, then a balance transfer can easily permit you to take a breath, think, and examine yourself outside that specific financial slot.
- Upgrade Credit Utilization Ratio: Your credit utilization ratio is the portion of your credit limit that you are utilizing. Typically, you wish to store or keep this quantity around 30% or less. In case it gets too high, it can resentfully affect your credit score. After conveying your existing balance and then paying it down, you will develop this ratio.
Disadvantages
- Generally, Need Strong Credit: This one looks unfair. You are trying to make a payment, and one of the most impactful tools to achieve that needs you to include good or finest credit. However, all the foremost and finest cards in the Best Balance Transfer Cards list will need you to have a Good Credit Score of 670 or more than that.
- Less Attractive Rewards: The kinds of Cards that advertise a 0% introductory APR on balance transfers manage to provide proportionally meager rewards. That said, many of the cards in the Best Balance Transfer Cards list are also delivered on the Best Cash Back Cards ranking. Therefore it is possible to search for a card that offers your both.
- Balance Transfer Fees: There is always a grasp; isn’t it true? For multiple cards having a 0% introductory APR, the discovery is that you will have to properly pay a balance transfer fee. Fees differ; however, an expected range is within 3% to 5% of the balance being conveyed.
Tips to Compare Balance Transfer Cards
Presently, only some of the balance transfer cards are similar. Given below are the points or factors which are essential for you to select any balance transfer cards.
- Fees: Some balance transfer cards charge annual fees. If the balance you are transferring is small or less, a 3% or 5% fee is not a huge or enormous dealbreaker. If your balance is more significant, you would like to run the numbers to view if the move is worth it.
- Intro APR: This is the most necessary factor to evaluate when selecting a balance transfer card. You are looking for a card including a 0% introductory APR, and you are possibly looking for one with the most extended time horizon before the daily APR breaks.
- Approval Odds: If you are trying to transfer a balance to help you develop or improve your credit score, you wish to apply or request a card at the time you ensure you will be confirmed. That is why using the card will activate a solidified inquiry into your score, which can be resentful.
Guide to Doing a Balance Transfer
- The balance transfer method is quite simple. Foremost thing, you apply or request the balance transfer card of your preference. Once you have been verified, let the bank or card issuer know that you would like to transfer a balance. Further, they will ask you for details regarding where the balance is occurring, and then they will commence the procedure. From start to finish, a balance transfer specifically takes around a week. However, some can take longer. Rest, you need to examine your accounts to verify or confirm that the transfer function appropriately.
Options for a Balance Transfer Card
- Utilize a repayment calculator: You can look for or search for free loan repayment calculators virtually. These permit you to mention your balance, timeline, interest rate, and other data. Moreover, they can offer you their details, like how long it may take you to make payment of your balance or how much you might save or secure interest if you pay it off faster.
- Get into getting a personal loan: Sometimes, you may be capable of paying down your credit card debt at a minimum rate, including a personal loan.
Complete list of the Finest Balance Transfer Credit cards
- BankAmericard
- Suppose your main objective is to save your money in interest on purchases or balance transfers; then, using BankAmericard is the best option you can ever get. The card includes 0% introductory APR for an enormous 21 billing cycles for buys and any balance transfers done in the starting 60 days. A 15.74%-25.74% variable APR applies after the initial offer is terminated. There is a 3% fee for all balance transfers. The card charges no fine APR, indicating a fee or payment is not going to affect your rates. The BankAmericard includes no annual fee and provides high-level security measures, digital wallet technology, and access to your FICO score.
- Truist Future
- The Truist Future Card is the finest for people who wish to save or store money on interest on purchases and balance transfers. Furthermore, you will receive a 0% APR for 15 months for purchases, and balance transfers made or done in the first 90 days after the account is set up. The APR is 14.24%-23.24% variable once the intro offer terminates, which is the lower APR of any preferred card applicable on Truist. A 3% fee is imposed on all balance transfers. The card charges no annual fee; additionally, it provides robust security measures and includes Visa Zero Liability protection against unassociated usage.
- Union Bank Platinum Visa
- This card is the most incredible option for people who want to take more time to make payments on a large purchase and for those searching to create a balance transfer. This card provides a 0% introductory APR on buys and balance transfers for around 15 months, then an 11.49%-22.99% variable. Furthermore, you will enjoy a 0$ intro balance transfer fee or amount for any ongoing balance transfers you make within 60 days of creating the account. In addition, the card does not come with or include rewards. However, it lacks an annual fee and comes with added or inclusive security features.
- Navy Federal Credit Union Platinum
- The Platinum Card is among the balance transfer cards that impose no balance transfer fees. Moreover, the card does not charge annual or foreign transaction fees. The card provides a 0.99% introductory APR on balance transfers for twelve months, then an 8.99%-18.00% variable. No doubt that this is a great deal, but you can precisely find or search out 0% APR provided on balance transfer cards, consisting of many other cards included in the list. But the collaboration of a minimum introductory APR and no balance transfer fees/price make this card a better option for Navy Federal Credit Union members or those who pass or clear for the membership.
- Capital One SavorOne Rewards
- The Capital One SavorOne Rewards Card is the best option for those searching to receive or get a reasonable, convenient rate of cash back on each purchase without an annual fee. The card offers unlimited 3% cash back on dining, streaming services, entertainment, and groceries. In addition, you can earn or get unlimited 5% cash back on rental cars and hotels registered via Capital One Travel. All the other purchases or purchases will create a 1% cash back. Those who expect to bring out a balance early on will value the 0% APR on purchases and balance transfers for around 15 months, 17.99%-27.99% variable APR. After which, a 3% fee is allocated on the quantities transferred, including the first 15 months. The card also comes with a welcome offer of $200 when you spend $500 on purchases within three months.
- Amex EveryDay
- This card is the better option for regular purchases and includes a kind welcome offer and an intro APR. As a creation bonus, you will get 10,000 Membership Rewards points after paying out $2,000 on purchases within the first six months. For rewards, you will receive 2X points on the initial $6,000 you spend every year at American supermarkets, and you will also earn 1X points on all other purchases. On top of that, you will receive 20% extra points whenever you utilize your card 20 or more times in a billing period. The card provides a 0% introductory APR on buys and balance transfers for around 15 months from the account creation, then a variable APR of 16.74%-27.74% variable. The card includes no annual fee.
- Fifth Third Truly Simple
- The Fifth Third Bank Truly Simple Card is engaging for those who are either searching to transfer a balance on a new purchase or creating or setting up a balance transfer, as it includes an introductory APR of 0% for months from account creation. After the intro APR period terminates, the APR will be 14.99%-25.99% variable. The Truly Simple card does not include an annual fee. The card also introduces contactless credit card payment technology and lets you conveniently direct your account with virtual and mobile banking.
- Bank of America Customer Cash Rewards
- This card is the finest choice or option for people who wish to manage which kind of spending earns the most cash back. You are also free to earn 3% cash back in your selected category, 2% cash back at supermarkets and wholesale club purchases, and a limitless 1% cash back on all assets. You can also take advantage of a $200 online/virtual cash rewards bonus once you make around $1,000 in purchases in the earliest 90 days after setting up an account.
- Chase Freedom Flex
- The Chase Freedom Flex Card offers you profitable rewards on rotating categories, permitting you to calculate your earnings by operating bonus categories each quarter. Furthermore, you also get robust flat-rate earnings on the other types, like 5% for travel brought via Chase Ultimate Rewards, 3% for drugstore and dining purchases, and 1% for all other purchases. All rewards can be saved for cash back, travel, or gift cards via the Ultimate Rewards website. As a bonus offer, you get $200 after spending $500 in the initial three months. In addition, for a fixed time, you will get 5% back on grocery store purchases of around $12,000 spent in the first year.
Final Verdict
Balance transfers credit cards include introductory APR offers or programs that provide a temporary break from interest fees and can help you manage debt. The finest cards in the group will have 0% APR from 12 to 21 months. Many card experts like GoBanking, Card Critics, etc., give ratings to the cards and identify the best balance transfer credit cards by assembling and latest inspecting data on all the primary credit cards applicable, then rating them on a 5-star rating system. The comparison factors include APRs, sign-up bonuses, accessibility, redemption options, ongoing rewards, annual fees, and more.
