Ultimate Guide to Pick a Balance Transfer Card

Oct 06, 2022 By Triston Martin

There is a wide variety of credit cards available, each with its own set of benefits and advantages. One variety, known as a balance transfer card, was created specifically for the purpose of assisting cardholders in settling outstanding amounts on other credit cards. With any luck, you'll be able to get an introductory APR of zero percent for a certain period of time and use that window to pay off as much of your debt as possible. You should shop around for a balance transfer credit card since they all have various introductory periods, ongoing APRs, and benefits (or lack thereof). Below, we'll go over the most crucial factors to think about when selecting a debt transfer credit card.

Considerations for Choosing Balance Transfer Credit Card

Find out How Balance Transfers Operate

Avoid putting the book down at the phrase "0 percent interest." There are two major catches to remember when transferring a debt from one credit card to another. One is that introductory 0 percent APR periods are always time-limited. Some introductory deals are rather lengthy, despite the fact that they don't endure forever: Credit cards with the longest introductory 0 percent APR periods often cover a transfer of your existing balance and the first 21 months of any new purchases. When the introductory period finishes, any remaining debt will begin to be charged interest at the standard APR. Because of this, it is highly recommended that the amount be paid in full before the introductory period ends.

See What Your Credit Rating Is

Only individuals with exceptional credit (740 or more on the Fair Isaac Corporation's credit scale) are often approved for the finest balance transfer credit cards. On the other hand, a "fair" FICO rating in the 670–739 area nevertheless may get you accepted. Keep in mind that there are credit cards for those with low credit scores, albeit they often have less desirable terms and requirements for making payments toward balances. Checking your credit score is a good idea before applying for anything. To learn more about the cards you could be eligible for, verify your credit rating for free.

Select a Card That Offers Bonuses and Prizes

Check out the incentives and perks that each balance transfer card offers to see which one is best for you to maintain in the long run. Some of the best credit cards for debt transfers also include insurance coverage and other buyback perks that may make using the card for all of your purchases a significant money saver. It's important to remember that balance transfers and spending incentives don't always go hand in hand. If you're attempting to get out of debt but still using your credit card for purchases, you may actually finish yourself farther behind or even in more debt than you were before.

Know Your Debts and Evaluate Your Options

Know precisely how much debt you're in, and don't forget that you may move balances from many cards onto a single new card. The length of time it takes to pay off your debts is also affected by the amount of debt you carry. And besides, if you owe $5,000 on a credit card with a 0% interest rate, it will take you a shorter amount of time to clear it off than if you owe $10,000, $25,000, etc. Although credit card debt is the most common kind of debt transferred to a balance transfer card, any type of debt may be transferred to a balance transfer card to help simplify your finances and avail benefit of the introductory 0% APR period. Depending on the card &'' issuer, you can transfer private, student, automobile, and home loans.

You should evaluate whether or not a balance transfer credit card is the best option for you if you have a large quantity of outstanding debt. Personal loans may be used for a variety of purposes, including debt consolidation and reduction, and many lenders provide the option of locking in a low set interest rate for a period of three to seven years. It's simple to account for and prepare for a personal loan's minimum bill since it's set and the loan's repayment period is predetermined. Confused about whether or not you should use a debt transfer credit card? Visit any relevant Tool for tailored credit card suggestions based on your FICO score, your spending patterns, and your day-to-day requirements.

Recommended Credit Cards for Making Balance Transfers

There is a huge disparity in terms of various debt transfer credit card offers. If you're looking for the best that money can buy right now, consider these options.

Discover it Balance Transfer

In addition to lowering your interest rate, the Discover it Balance Transfer may help you earn points on your purchases while you pay down your existing credit card balances. For the first $1,500 you spend each quarter in the card's designated bonus areas (activation needed), you'll get 5 percent cash back. On top of that, you get a flat one percent cash back on anything else you buy. Discover will even double the value of all the prizes you earn once the first year has passed. After the introductory period of zero percent on buys and 0 % on balance transfers, a variable rate of fourteen point nine to twenty-five point nine percent will be applied. Initial balance transfers are charged a 3 percent charge, and any subsequent transfers may incur a cost of up to 5%.

Double-Cash Card from Citi

The Citi Double Cash Card offers up to 2 percent cash return on every transaction – 1 percent when you buy and 1% when you pay. No annual charge, 0% initial APR on debt transfers for two years, then 16.34% to 26.244% variable APR. During the first three months after creating an account, balance transfers are subject to a 3 percent initial balance transfer charge (min $5).

The Bottom Line

A balance transfer might be a useful tool for getting control of your finances. Which credit card is right for you will be determined by the total sum of debt you carry and how soon you are capable of paying it off. You must think about the card's rewards system and any costs associated with using it (if any).

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