Balance transfer credit cards are designed to let cardholders move debts from one credit card with a higher interest rate to another credit card with a lower interest rate. The goal is to avoid paying extra fees and save money on interest charges. Balance transfers to cards with lower introductory rates save interest not only during the introductory period, but also hundreds or even thousands of dollars a year in interest charges.
When you are thinking about balance transfer credit cards, you need to think about and understand when the balances you transfer will expire. You should also know the APR and what fees you'll have to pay after the free trial is over. Ask the card issuers if the introductory rates will apply to the first transfer or if they will only apply to balance transfers made during the introductory trial. You could also ask whether the introductory rates apply to both purchases and balance transfers. It's also important to know how the annual fees are set up. Also, it is important to know if there will be an annual fee for the trial period. Ask if there are any transaction fees for the cards.
Transfer Fees
Balance transfer fees can be expensive, but you can avoid them if you ask questions up front. Most balance transfer fees are around 3%, but some lenders charge up to 4%. Due to competition, credit card companies work hard to get new customers. So, teaser ads are put on the Internet to get people to come in. Even though the slicks say that you can take advantage of the low interest rates and introductory rates of 0% if you have good enough credit, not everyone has the credit that lenders will require.
Gives Cash Back
Some of the cards, like the Chase Cash Plus Rewards Visa, offer 5% cash back for a limited time on purchases made at grocery stores, drugstores, or gas stations. Most of the time, though, the card issuers have rules, like only purchases at certain stores count. This means that if you don't shop at the stores listed in the agreement, you won't get rewards. This card also gives you an extra 1% cash back on everything else you buy. There are no annual fees, and the introductory APR on balance transfers and purchases is 0% for up to a year.
The Citi Platinum Select is one of the online credit cards that let you transfer a balance. Some of these cards offer 0% APR on purchases and balance transfers for up to a year. But the deals will end at some point, so taking advantage of them now can save you money. After the introductory period is over, many of the cards will still have similar low APRs. Some of the cards will have benefits that the others might not, like free online account management reports that are secure. So keep an eye out for these unique things.
What it has to offer
If you want a safe balance transfer credit card, you might want to think about the Blue card from American Express. With this card, the introductory APR is 0% for up to 15 months, and the rates after that are low. Still, the deals won't last long, so it's best to take advantage of them as soon as you see them. There are no annual fees, and it comes with a Smart Chip that keeps your information safe when you shop online or look at your online reports. Smart Chip is becoming one of the most popular ways to keep people safe. It is already used all over the UK and will soon be available in the US. This card comes with a free rewards programme, but you need to have great credit to get it.
