There are a lot of balance transfer offers on the market today, and many look very appealing. Consumers are offered a 0% APR for a substantial amount of time on the amount you transfer from one card to another. And in some cases, you may even have that 0% on what you purchase during that time frame.
Transferring a balance from one credit card to another can be very beneficial if it is done correctly. You have the opportunity to consolidate your debt, save significant amounts of money in interest penalties, and possibly free yourself from fees on other credit cards.
With most cards, this convenience comes at a price: the balance transfer fee. The typical balance transfer fee is 3%. That means that you will have to pay 3% of the balance you are moving over to your new card company. So you will pay a fee of $30 for every $1,000 you transfer. This could be a lot of money if you transfer a large balance. It should be noted that this fee will be added to your balance immediately, so you could one day end up paying interest on this fee.
But there are some cards on the market that do not charge a balance transfer fee. These are cards you should seriously consider if you are thinking about transferring a balance.
Low Interest Credit Cards with No Balance Transfer Fees
Here is a list of the top low interest credit cards with no balance transfer fees:
- Chase Slate: This is the most attractive balance transfer card on the market today. The 0% APR for 15 months is good on both purchases and balance transfers. If you transfer a balance during the first 60 days of being a cardholder, there are no balance transfer fees. The ongoing APR on the Chase Slate card is 12.99% to 22.99%. And there is no annual fee with this card.
- Barclaycard Ring MasterCard: This card has no introductory period, but it does not have a balance transfer fee. The cash advance fee here is only $1 per transaction. The APR here is a shockingly low 8%, and there is no annual fee. What's the catch? You have to have excellent credit to qualify. The card also an attractive rewards program.
- Simmons First Visa Platinum: This card is a lot like the Barclaycard in the sense that it offers no intro period and low rates from the start. The interest here is even lower at 7.25%, and there are no balance transfer fees. The card comes with travel accident insurance, emergency card replacement and rental car coverage. The only drawbacks are the lack of rewards program and the fact that you have excellent credit to qualify for the card.
There are a number of balance transfer cards that do charge a fee, but the advantage to those cards is that they usually have long introductory periods where you may have a 0% APR. You need to do the mathematical calculation to determine if it is worth it to pay the balance transfer fee in order to have no interest for this period of time. That is something you need to take the time to analyze.
If you do receive any type of introductory period with your balance transfer, it is very wise to pay off as much--and ideally, all--of your balance during that time period. That is how the balance transfer can work in your favor.
Check out some of the low interest credit cards with no balance transfer fees to see if any of them are right for you. You may be able to eliminate your debt quicker than you think.