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Saturday, 9 June 2012

Best 0 Balance Transfer Credit Cards

How to Find the Best 0% APR Balance Transfer Credit Cards

What are the important points in choosing 0% APR balance transfer credit cards? Obviously, one of the most important points of these credit cards is 0% introductory APR period on balance transfers. Of course the longer the introductory period, the better. The majority of these periods are between three and twelve months (The period of a certain business credit card is 15 months), and many are six or twelve months. The period of some of these cards is determined based on applicant's creditworthiness and credit history, and may vary from person to person as interest may vary from person to person. So It's best to choose credit cards that have 0% introductory APR on balance transfers for 12 months or up to 12 months.

Annual fee cost you money but many issuers offer 0% APR balance transfer credit cards with no annual fee.

Then are 0% APR balance transfers really free? The answer is no, there is balance transfer fee. Unfortunately, almost all of these cards charge this fee. This is transaction fee for balance transfers. The fees of most of these cards are 3% of the amount of each transaction, and have a minimum. Some of them also have a maximum per transfer and they are mostly less than $100, and many are $75.00 or $99.00. Therefore when more than a certain amount of balance is transferred with these cards, the fee may be less than 3% of the amount of transaction. For example, when more than $7,500 balance is transferred to the credit card with a maximum of $75, the fee is $75.00 and less than 1% of the amount of transaction. Hence, the best 0% APR balance transfer credit cards may feature:
  • There is 0% introductory APR on balance transfers for (up to) 12 months.
  • There is no annual fee.
  • Balance transfer fee is 3% of the amount of each transaction with a maximum of $75.00.

3 percent of $2,500 is $75. So when more than $2,500 balance is transferred, these cards may offer significant financial benefits.

Credit cards that feature low standard balance transfer APR, no annual fee, and no transfer fee may help you save more money. Because with these cards you can transfer balances with high interest rate or default APR into low standard APR card with no fee. Furthermore, if you consolidate your balances into one no fee credit card, and then transfer your consolidated balance to the credit card with a maximum of $75 on transfer fee, your fee still has a maximum of $75.

However, fortunately, credit cards that offer 0% APR balance transfer with no fee do exist. But, this type of cards have decreased in number and are very rare. Currently the best cards of this type may feature:
  • There is 0% introductory APR on balance transfers for 6 months.
  • There is no fee for balance transfers made within the first 90 days of Card membership, or $0.00 for balances transferred within the first 30 days of account opening.
  • There is no annual fee.
With these great credit cards, you may make no fee 0% APR balance transfers.

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