The Anatomy Of a Top Balance Transfer Card
Filed Under (Credit Card Tips) by creditblogger on 26-09-2008
Balance transfer credit cards are one of the more popular categories of credit cards in the financial industry. These cards allow consumers to transfer their high interest debts and consolidate it in return for a nominal fee (usually 3%). It is also possible to transfer balances without a fee, but cards that come with that feature have slightly higher APR.
Not every balance transfer card is created equal. On the one hand, we have balance transfer credit cards that end up costing you thousands more when you are done with them. On the other hand, there are a few balance transfer credit cards that save you a lot of (interest) money and headaches. In essence, top balance transfer credit cards come with:
- Low Transfer Fees: the industry norm seems to be 3% when it comes to balance transfer fees. But there is always a minimum, and you need to take a look at terms and conditions for each card before applying for a balance transfer credit card. The minimum is usually $5 but it could be different depending on your issuer. Capital One Prestige is one of the few cards that comes with low APR and no balance transfer fee but it is designed for people with excellent credit so not everyone qualifies for it.
- Amazing Introductory Offers: if you take a look at top balance transfer cards, they all come with either long introductory offers or fixed transfer rates for the life of your balance (e.g. Discover More Card).
- Annual Fee: most top balance transfer credit cards do not come with an annual fee. Unless you are getting a card that is heavy with rewards or is made for big businesses, you should consider cards that do not have annual fees.
- Application Bonus: a few credit cards allow you the opportunity to lock in a very low APR for your balance transfers if you do them at the time of submitting your online credit card application. I strongly encourage you to keep an eye out for these bonuses as they can’t be used once you are a card-holder.
- Other rewards: a few credit cards come with low APRs for balance transfers and purchases alike. These cards often offer 1-5% cash back on your purchases with limit on the money that you can earn. The goal here should be to not only get the best balance transfer deal but try to lock in decent cash-back rate or rewards if possible.
The best balance transfer credit cards come with low introductory APRs and low (or no) balance transfer fee. Not every card is perfect and some very attractive cards come with nasty hidden fees. But if you read the terms and conditions for your card thoroughly, you can avoid these surprises and get the best “BT” deal for you.
