Looking for the best balance transfer credit cards? Here are some great options to consider!
Hello friends, if you’re carrying a balance on your credit card that’s accruing high-interest fees every month, you might want to consider transferring that balance to a credit card with a 0% introductory APR (annual percentage rate). This can help you save a significant amount of money in interest fees and get out of debt faster. In this article, we’ll take a look at some of the best balance transfer credit cards available today, and what you should consider when choosing the right one for you.
What is a balance transfer credit card?
A balance transfer credit card allows you to transfer the balance from one or more credit cards onto a new credit card. This new credit card typically offers a 0% introductory APR for a certain amount of time, which means you won’t have to pay any interest charges on your transferred balance during that time. This can help you save money on interest fees and pay off your debt faster. However, there are some things you should keep in mind when considering a balance transfer credit card.
What to consider when choosing a balance transfer credit card
Before applying for a balance transfer credit card, there are a few things you should consider:
- Introductory APR: Look for a card that offers a 0% introductory APR for a significant amount of time. This will give you more time to pay off your balance without accruing any interest fees.
- Balance transfer fee: Some credit cards charge a balance transfer fee, which is usually around 3% to 5% of the amount you’re transferring. Make sure you factor in this fee when deciding if the balance transfer is worth it.
- Regular APR: After the introductory period ends, the credit card will charge a regular APR on any remaining balance. Make sure you know what this rate is and if it’s reasonable for you.
- Rewards: Some balance transfer cards offer rewards points or cashback on purchases, which can be a nice bonus.
Best balance transfer credit cards in 2021
Now that you know what to consider, here are some of the best balance transfer credit cards available in 2021:
Citi® Double Cash Card
The Citi® Double Cash Card offers a 0% introductory APR on balance transfers for 18 months (after, 13.99% – 23.99% variable APR), making it a great choice for those who need a bit more time to pay off their debt. The balance transfer fee is 3% (minimum $5), but there is no annual fee. Plus, you can earn up to 2% cashback (1% when you make a purchase, and 1% when you pay it off) on all purchases.
Chase Freedom Unlimited®
The Chase Freedom Unlimited® offers a 0% introductory APR on balance transfers for 15 months (after, 14.99% – 23.74% variable APR). The balance transfer fee is 3% (minimum $5), but there is no annual fee. Plus, you can earn unlimited 1.5% cashback on all purchases.
Capital One® Quicksilver® Cash Rewards Credit Card
The Capital One® Quicksilver® Cash Rewards Credit Card offers a 0% introductory APR on balance transfers for 15 months (after, 15.49% – 25.49% variable APR). The balance transfer fee is 3% (minimum $5), but there is no annual fee. Plus, you can earn unlimited 1.5% cashback on all purchases.
Discover it® Cash Back
The Discover it® Cash Back offers a 0% introductory APR on balance transfers for 14 months (after, 11.99% – 22.99% variable APR). The balance transfer fee is 3% (minimum $5), but there is no annual fee. Plus, you can earn 5% cashback on rotating categories (up to $1,500 in purchases each quarter) and 1% cashback on all other purchases.
Wells Fargo Platinum Visa card
The Wells Fargo Platinum Visa card offers a 0% introductory APR on balance transfers for 18 months (after, 16.49% – 24.49% variable APR). The balance transfer fee is 3% (minimum $5), but there is no annual fee. This card doesn’t offer any rewards, but if you’re only looking to transfer your balance and pay it off without accruing more interest fees, this could be a good option.
How to use a balance transfer credit card effectively
Now that you know some of the best balance transfer credit cards available, here are some tips for using them effectively:
- Pay on time: Make sure you pay at least the minimum amount due on time every month. Late payments can lead to fees and may also cause your introductory APR to be canceled.
- Prioritize your payments: If you have multiple credit cards with balances, prioritize paying off the card with the highest interest rate first. This will help you save the most money on interest fees.
- Avoid spending on your new card: Once you transfer a balance to your new credit card, try not to use it for new purchases. This will help you focus on paying off your existing debt without accruing more.
- Don’t close your old credit card: Closing your old credit card can lead to a decrease in your credit score. Instead, keep it open and try not to use it until you’ve paid off your balance transfer.
- Don’t transfer more than you can pay off: While it’s tempting to transfer all of your credit card balances to a new 0% APR card, make sure you can realistically pay off the balance before the introductory period ends. Otherwise, you’ll be back to paying high-interest fees on any remaining balance.
Conclusion
Balance transfer credit cards can be a great way to save money on interest fees and pay off your debt faster. When choosing a balance transfer card, consider the introductory APR, balance transfer fee, regular APR, and rewards. Some of the best options available in 2021 include the Citi® Double Cash Card, Chase Freedom Unlimited®, Capital One® Quicksilver® Cash Rewards Credit Card, Discover it® Cash Back, and Wells Fargo Platinum Visa card. Remember to use your new card effectively by paying on time, prioritizing payments, avoiding new purchases, and not closing your old credit card. Good luck!
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