Balance Transfer Credit Card
BEST BALANCE TRANSFER CREDIT CARD
Very best best balance transfer bank card? This is a popular question frequently posed to me by visitors of my website. It is also one of the most difficult bank card questions to answer. The simplest answer is “it depends. ” When only it were that easy. Finding the best balance transfer is determined by a number of factors. Here, we will examine a few common situations where there is unquestionably an ideal balance transfer option.
Situation I: You want to lower your current interest rate and will make new purchases.
Within this situation, credit cards that offers a 0% interest on purchases and balance transfers is evidently the best option. Offers for these credit cards can be common and most provide a 0% interest rate for just one year. This balance move approach reduces your current interest expenses while keeping down interest costs on new purchases.
A disadvantage in many of these credit cards is that most will impose a 3% balance transfer payment of up to $75. However, even with the balance transfer fee, shifting a $3500 balance from a card with a 14% interest will still save you over $400 on interest, not including the money you save on new purchases. For most, this is the best balance transfer credit card.
Situation 2: You want to transfer a higher rate balance and will not make new purchases.
Here, a no payment charge card is the best balance transfer option. Finding a no charge balance exchange credit card is a difficult task these days, as most companies no lengthier offer them. However, with this type of cards, transferring a $3500 balance from a credit card that charges 14% interest will save you over 500 usd.
A major downside to no cost balance transfer offers is the fact most will not give you a 0% rate on purchases. Thus, if you add $2, 1000 in purchases, you may conclude wasting the money you saved on the balance transfer by racking up another $300 in interest charges.
Fortunately, there exists a good way around this option. Simply get a credit card that offers 0%, no payment balance transfers and another that offers 0% on purchases. For most, this can be the best overall balance transfer option.
Circumstance 3: You intend to pay your balance off over a any period of time of time.
If you plan to pay your own cards balances down over the longer period of time, a Fixed APR credit card is probably the best balance transfer option. Repaired APR balance transfers typically provide a balance transfer rate of 4. 99% to 5. 99% until the balance is repaid.
Numerous Fixed APR cards charge balance transfer fees, effectively raising your interest rate during the first year. However , if you intend to pay your balance during five years, a repaired APR balance transfer will offer solid savings in the long run.
Last Thoughts
An analysis of your current situation can go a long way in finding the best way to save with a balance move. For many, a no payment balance transfer, put together with a 0% credit card, will provide the most savings. But as you can view, when it comes to selecting the best balance transfer, it really does depend.
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