Balance Transfer Credit Card Tips
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0% Balance Transfer Deals can be a great tool to lower your interest payments and used as part of a credit card debt strategy. However, there are things that you have to be aware of or you might trip. Below are a few tips to consider before you get one of these balance transfer deal cards.
Always Pay On Time - As part of the terms and conditions, credit card issuers reserve the right to increase your rates if you are late on one payment. Very often, the new rate could be over 20%. To make sure you take full advantage of the 0% deal, PAY YOUR BILLS ON TIME.
Set Up Auto Payment - The best way to make sure you pay your bills on time is to set up auto payment whereby your credit card bills are paid from your bank account automatically. There are two ways to set it up. The first method is with your bank and the other way is with your credit card company. I would suggest setting it up with your credit card company because if anything goes wrong, you can point the finger at them.
Look out for any changes in grace period - If your credit card company decides to reduce their grace period for example from 25 days to 20 days, it may mean that you have to pay your bills sooner. If this happens, check that your autopay schedule is still good.
Be realistic - If you have a good credit score, chances are good that you can still get 0% deals for 12 months. But if your credit is not so good, be more realistic. You are probably better off getting a low rate deal for 6 months and getting approved, rather than attempting a 0% 12 month deal and getting turned down.
Transfer your balance only after you get approved and know your credit limits - Credit card issuers are so strict these days that you stand a better chance of getting approved if you do not submit your balance transfer request during the application process. It is better to know what credit limits you have been given and then transfer the balance.
Do charge other things on the card - If you use your card for balance transfer, do not charge other things to the card. Your payments goes towards paying the balance transfer and you will accumulate more credit card debt at a higher interest.
Final Thoughts - If you carry a credit card balance, you should always be looking for good balance transfer deals to reduce your monthly payments and help speed up your credit card debt reduction plans. There are two types of balance transfer deals which you should be aware of. The first is deals which says you will get 0% for a FULL x number of months. This means, if they say 12 months and you get approve, then it is for 12 months. There are others who will offer a 0% APR for balance transfers up to x number of months. The thing you have to be aware is that unless you have very good credit, you may not get the maximum introductory period but may get one that is shorter instead.
Best 0% Balance Transfer Credit Card For Excellent Credit
The Slate® from Chase is on a big push now to get new sign ups. And guess what are they offering? A 0% APR for both balance transfer and purchases for 15 months with no balance transfer fee. You do have to transfer the balance within 30 days or else you have to pay the usual 3% fee. At this moment, nothing beats this deal.
The Discover® More® Card has a couple of balance transfer deal going on at the moment. For the month of January, they are offering a 0% Intro APR on Balance Transfers for 12 months. Aside from this great offer, this is one of the best cash back cards and is on our Editor's Choice List.
At this moment there are quite a few 18 months deals.
The Discover® More® Card offers 0% Intro* APR* for 18 months on Balance Transfers* and purchases*. The things I really like about this card is that while you want only use a balance transfer card simply for a balance transfer, with this card, you would actually want to keep it because you can earn lots of cash rebates with this card.
The first card is the Citi® Platinum Select® MasterCard®. They are offering 0% Intro APR* on balance transfers for 18 months and 0% Intro APR* on purchases for 18 months. If you shop online a lot, this card has a unique feature whereby you are given a separately generated credit card number just for online use. This is another step to preventing fraud online.
The other Citicard that is offering a 18 month 0% balance transfer deal is the Citi Simplicity Card. What differentiates this card from others is that you do not get charged any late fee penalties in the event of an "accidental late payment" if you have made purchases on the card the same month (ie if you are a regular users).
The Citi® Diamond Preferred® Card also offers a 0% Intro APR on balance transfer and purchases for 18 months. The key difference from the Platinum Select and Simplicity Card is that you get a free concierge service (a feature that is normally reserve for more "high end" cards).
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The Discover Motiva Card distinguishes itself from other card by offering a 10% rebate on your "interest" if you pay your bills on a timely basis for six months. This card is great for those who carry a balance. A 0% Intro APR offer on balance transfer and purchase for 15 months awaits the new cardholder.
The Discover® Open Road(SM) Card offers a 0% Intro* APR* for balance transfer and purchases for 12 months. Aside from having the features of the regular Discover Card, you can also earn 2% rebates on gasoline with this card.
The Citi® Dividend Platinum Select® Visa® - $100 Cash Back offers a 0% Intro APR* on balance transfer for 12 months. In addition to that, this is one of the best cash back credit cards in the market today as it offers cardholders the ability to earn extra rebates on quarterly rotating categories and from their online shopping portal.
Balance Transfer Fee Policy of Different Issuers
Bank of America - Has removed caps on balance transfer fees.
Chase - Has removed the cap on their balance transfer fees
Discover - Has removed caps on balance transfer fees
American Express - Maximum balance transfer fee is $99 but do not have 0% offers. Has no balance transfer fee for certain cards.
Citicard - Has removed the cap on their balance transfer fees
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