If you are looking for a card that is going to help you consolidate debt, then a balance transfer credit card is for you. Credit cards can provide significant assistance to consumers since they provide convenience for payment.
In the same way, if one accumulates a huge debt on these cards, transferring balances to another card with a lower interest rate can help save money.
That is where balance transfer credit cards enter as most of these cards offer free balance transfer to cardholders. The reality is that carrying debt on credit cards is costly because of incurring interest charges and other penalties.
For some banks, the interest alone can reach $1,000 a year minimum. If you are planning to pay down debt and at the same time, save on bank charges, you need to find a great balance transfer credit card.
If you want to get your finances in order and want to transfer balances to one place then we've got some answers. Our editors have looked into the balance transfer credit card market and come up with some information.
First, sort out your goals and then read everything below to figure out if one of these cards might be right for you.
How Balance Transfer Credit Cards Work
Moving balances to another credit card is nothing new; people are already doing it since the early 2000s.
In fact, banks have developed financial products to suit people’s needs and demands, introducing credit cards with lower fees for incoming balance transfers and regular interest rates for debts. Some cards even offer 0% balance transfer for a certain period, usually 12 months.
By now, you are probably thinking, ‘how can a balance transfer credit card can help with my finances?’ Simple, these cards are designed to help you settle your balances with minimum charges for the interest rate.
While there is no such thing as free or zero interest, the charges linked to balance transfers are relatively lower compared to other credit cards.
Things to Look Out for in a Balance Transfer Credit Card
Nowadays, the options for balance transfer credit cards are almost limitless. In the United States, several banks already implement a 0% intro fee for balance transfers made within the first 60 days of account opening. Others only charge $5 for every balance transfer, which is a steal.
The first thing you should look for in these cards is the regular balance transfer APR. Once the introductory period ended, you will be paying the regular balance transfer rate. Therefore, consider looking at the regular rate to find out the charges you need to settle for carrying and moving balances.
In addition to the balance transfer APR, you need to look at the balance transfer fee itself. Commonly, the charges can fall between 3% to 5% or higher, depending on the bank. Of course, you need to choose a card with a lower balance transfer fee.
What Are the Best Balance Transfer Credit Cards?
The top balance transfer credit cards you can choose include the following.
Bank Americard Credit Card
This credit card issues zero annual fees and 0% introductory APR for 18 billing cycles. After the introductory period, cardholders can get a 14.49% APR variable and a 3% fee for all balance transfers.
The best thing about this card is the ‘no penalty APR’ which means paying late won’t raise the interest rate.
To apply for this card, you can call Bank of America at 800-932-2775 or visit Bank of America Corporate Center at 100 North Tryon Street, Charlotte.
American Express Cash Magnet Credit Card
Moving balances using this credit card is affordable with only a $5 or 3% fee for all balance transfers. Cardholders can take advantage of the 0% intro APR for 15 months of account opening. After the introductory period, you are looking at a 14.49% variable APR for carrying balances.
This card also charges no annual fee, giving you a breather each month you pay off balances plus interest.
To apply by phone, you can contact American Express at 1-800-243-3888 or visit their head office at 200 Vesey Street New York, NY 10285-3106.
Wells Fargo Platinum Credit Card
Another credit card you can choose for paying the minimum for balance transfers is the Wells Fargo Platinum Credit Card. This features 0% introductory APR for purchases and balance transfers within 18 months of account opening.
After the introductory period, your APR will start at 16.99% based on US Prime Rate.
Moving your existing balances to a new credit card should help you pay off debt faster, permitting that you choose a credit card with a low APR for balance transfers. Make sure to understand the fine print and the terms, do the math, and create a realistic repayment plan to clear out your debt over time.
Contact Wells Fargo at 1-800-642-4720 for account management and 1-800-932-6736 to apply by phone. You can also find their main office at 420 Montgomery Street San Francisco, CA 94104.
Note: There are risks involved when applying for and using a credit card. Consult the bank’s terms and conditions page for more information.
