Compare the choices offered by many different companies if you’re trying to get a transfer credit card. Some credit cards enable you to transfer your debt from one card to another using a balance transfer card, frequently with a special interest rate.
However, many options come with fees that can add up quickly. Luckily, quite a few options are no transfer fee credit cards.
You will probably get perks like cash back as an account credit when you shop, and some even allow balance transfers for 12 months without any additional card charges. Bear in mind that certain card issuers might not allow for transfers between cards from the same issuer.
Best Balance Transfer Cards for a Balance Transfer Offer
What Is a Balance Transfer and How to Choose One
Transferring your debt to another credit card is a financial transaction. This is typically done to take advantage of lower interest rates or better repayment terms on the new card.
These are often subject to specific terms and conditions, including the date from which interest will be charged on the transferred cash and any fees associated with the transfer.
Some credit card companies might limit the amount you are able to move, or they will ask you to apply for a transfer within the first 60 or 90 days of opening a new account.
Balance transfers made within 120 days of account opening are typically eligible for promotional rates, including balance transfers for 15 months with no interest charged. It is beneficial to read the fine print and be aware of any charges or fees associated.
How Does a Balance Transfer Work?
A balance transfer means that you have the option to move your cash to a different card. Typically, in order to transfer a balance from one card to another, you must apply for a credit card with a balance transfer and supply the card’s information.
Once the application is approved, the new card company will typically charge fees, which can range from 0% to 5% of the cash being moved.
The cost of the balance transfer is added to the new card. The balance transfer date is the day that the card company collects the details of the card with the transfer.
You can then start making payments on the new card with a promotional rate. If you have a card without a balance transfer option, you will not be able to move cash to another card.
What is a Balance Transfer Fee?
A balance transfer fee is an expense that companies charge for moving any outstanding cash to another card. A percentage of the transferred balance is usually the cost of this fee. It can range from 0% to 5%.
As an example, if you choose to transfer a $10,000 balance from one card to another, and the fee is 3%, your fee in dollars would be $300.
The purpose of the fee is to compensate the company for the cost of processing the transfer. Some cards, such as the Wings Visa Platinum credit card, provide balance transfer card options with no transfer fee.
This means that you are able to transfer your balance without a fee. These options usually include an introductory APR for a set period of time, such as 0% intro APR for 21 months on balance transfers from date the credit card has been collected. This should speed up your debt pay-off and help you save up on interest.
How to Calculate a Balance Transfer Fee
To calculate a transfer fee, you need to know the amount of each transfer and the intro balance transfer fee rate. For example, if you transfer $10,000 and pay a charge of $500, the fee will be 5%.
Certain cards give balance transfers for 18 months with an introductory APR on balance transfers within the first 4 months of account opening on qualifying balance transfers.
If you plan to take advantage of this opportunity, calculate the fee to make sure it’s worth it. It’s highly relevant to make a plan to pay off the credit card balance within the promotional period to avoid paying interest.
Additionally, it’s worth noting that some companies may provide a lower intro fee rate for cash movements made within a certain timeframe. To get the greatest solution for you, it’s often a good idea to assess offerings from several businesses.
This does not mean your credit score will automatically improve. Finally, remember to keep your credit score intact by making payments on time to avoid late fees.
How Long Does a Balance Transfer Take?
The time it takes depends on several factors, such as the company’s processing time and the information required to complete the transfer. Typically, it will take a few days or a few weeks for it to be processed.
To transfer money without incurring a fee, you must qualify for a balance transfer card that provides this benefit. Some credit cards charge for transfers, such as a fee of 3%, so it’s highly beneficial to review the terms and conditions thoroughly before applying for a new one.
When considering a fee-free alternative, you might want to explore options like peer-to-peer payment services or online payment systems.
These options allow you to send and receive money without a fee. However, keep in mind that there may be limits on the amount of money you can move and the frequency.
How Much Balance Can I Transfer?
The credit limit of your card and the conditions determine the amount of money you will be able to move. Credit card issuers may offer a promotional rate for a certain period of time, typically ranging from a few months to a year or more.
Navy Federal Credit Union, for example, offers 0% intro APR for 12 months on qualifying balance transfers made within 30 days of account opening.
There could be a limitation on the amount you can transfer, such as a specific percentage of your credit limit. It is useful to read the terms and conditions carefully, including any annual fees and the interest rates for purchases and balance transfers, to understand how much you are able to transfer.
Pros and Cons of No Balance Transfer Credit Cards
|Intro APR on balance transfer cards: This enables you to switch your existing balance to the new card and pay no interest for a predetermined time, typically ranging from 12 to 21 months from account opening.||High APR on purchases: While many transfer cards offer a low APR, the APR on purchases can be much higher, which can make it difficult to pay it off if you make new purchases.|
|No fee: Some options do not charge a fee to transfer the balances, which means you can transfer cash without a balance transfer fee.||Fees: Some credit cards may charge a balance transfer fee of 3 % or more.|
|Low APR on transfers: Once the intro period is over, the APR on balance transfers can be much lower than the APR on your existing credit card, which can save you money in interest.||Qualifying credit score: To be eligible, companies generally want a good to excellent credit score, and that may not be accessible to everyone.|
|Improve your credit score: By consolidating your credit card debt and making payments regularly, you could boost your credit score over time.||Intro period limits: The intro APR on balance transfers typically lasts for 12 to 15 months, which may not be enough time to pay off your entire credit card remaining.|
|No annual fee: Most cards do not charge an annual fee, meaning that you can save money on card fees.||The temptation to overspend: If you have a zero balance on your original credit card, it can be tempting to make new purchases on your transfer card.|
How to Apply for a No Balance Transfer Fee Card: Qualify for a Balance Transfer
To apply for a no fee balance transfer card, you can follow these steps:
- Research credit cards that offer no transfer fees, such as the Wings Financial Credit Union Visa Platinum Credit Card.
- Check the terms and conditions of the card, including APR on purchases and balance transfers, intro period length, annual fee (if any), and other fees.
- Apply for the card online or by filling out a paper application. You will need to provide your personal information, employment information, and financial information.
- You’ll get your new credit card via mail shortly after it’s approved.
- Once you receive your new card, activate it and set up your online account.
- In order to take advantage of a balance transfer offer, log in to your new account and look at the instructions to start the transfer. You will need to show the account number and balance of the card you want to transfer from.
- Be aware that the introductory balance transfers last for 12 to 15 months, during which you can make purchases and qualifying balance transfers without a fee. Once the intro period has ended, the APR on balance transfers and purchases will bump up to the usual rate.
Should You Get a Credit Card with No Fee on Balance Transfers?
Getting a credit card with no transfer fees may be a smart move if you have credit card debt and want to avoid paying interest.
By taking advantage of an introductory offer, you can transfer debt from your high-interest credit card to a new card with a low or no introductory APR. This could speed up the repayment of your loan and spare you from incurring interest.
If you’re considering this card, look for an offer with a long intro APR for 18 months from account opening or more. This will give you enough time to pay off the balance without accruing interest.
Further, certain options give an introductory APR for 12 months on purchases, which can be helpful if you plan to make a large purchase and want to avoid interest.
Pay close attention to the APR on purchases made after the introductory period when selecting a card. Also, take into account the card’s annual charge, which may include a flat-rate or percentage-based balance transfer fee of either.
In general, if you want to pay off credit card debt, a no-fee card with a long introductory period and a low ongoing APR can be a suitable option.
How to Choose a Credit Card with No Balance Transfer Fee
When looking to select a perfect credit card without a transfer fee, there are many things to have in mind. Here are some things to keep in mind when choosing the best balance transfer credit card offers:
- Intro APR: Look for an option with a long introductory period, such as an intro APR for 15 months or more. This will give you more time to pay off outstanding cash without incurring interest charges.
- Annual fee: Some cards come with an annual fee, so make sure to compare the fees of different options to find the best deal. Look for one with no annual fee or a balance transfer fee that is low enough to offset the savings.
- Ongoing APR: Check the ongoing APR on purchases after the intro discount ends. A low ongoing APR can save you money in interest charges.
- Reward options: Take into account whether you can get benefits for purchases, such as cash back or points. In case you plan to use the card for purchases, a rewards program can be a big plus, even if it may not be the most relevant factor to bear in mind.
- Credit score: You have to understand that you will be required to have a good to excellent credit score to qualify for the best transfer options.
Some of the best credit cards currently available include the Chase Freedom Unlimited, the Citi Simplicity, and the Discover it Transfer. These offer a long intro APR period, no annual fee, and other benefits that can help you save cash on interest charges and pay off your credit card debt quicker.
Methodology for No Balance Transfer Fee Card
The methodology for selecting a no fee credit card involves several factors that should be taken into consideration.
Firstly, it is good to research and compare the different credit options available in the market that offer a no transfer fee. This can be done by reviewing various online sources such as comparison websites, blogs, and forums.
The next step is to look at the introductory offer, such as the introductory period length, together with the interest rate during the introductory period and any additional benefits that come with it.
A good option should give you an introductory period of at least 15 months and an interest rate of 0% or close to it. It is always beneficial to check if there are any fees associated with the card, such as an annual fee or a transfer fee.
The minimal credit score requirements are another factor to consider when choosing a free balance transfer card. Review the credit score requirements before applying.
Finally, thoroughly examine the card’s terms and conditions to comprehend any limits or constraints that might be attached to it. By following these steps, consumers can make an informed decision when picking the best for their needs.