Choosing the best balance transfer credit card is a little bit
tricky, simply because when it comes to credit cards, everyone's needs
are slightly different.
You may be focused on the
introductory APR, while someone else may
be more concerned about balance transfer fees or the length of the
introductory offer. So in order to come up with the "best" balance
transfer card, I have tried to take these things into account, and
choose the credit card that "rises to the top" of the list in most
Type Of Credit Card: Visa
APR On Balance Transfers: 0%
Length Of Introductory Period: 9 billing cycles after account opening (about 9 months)
Balance Transfer Fee: 3% or $10 per balance transfer during introductory period, BUT capped at $50 per transfer (I will show you below how to bring the transfer fee to zero
Annual Fee: Choice of No Annual Fee or $29 Annual Fee (the annual fee card entitles you to better rewards earnings under the cards rewards program
Rewards Program: Earn up to 4 points per dollar spent (each point is worth $.01) and use the points to pay off your balance on the credit card
By using the rewards program offered on this credit card, you can effectively end up with...
In fact you could actually end up $21 ahead of the game
This technique works if you plan on transferring one larger balance from another credit card.
Example #1 - Applying For The No Annual Fee Credit Card
If you were to sign up for the "No Annual Fee" card, and transfer $2,500 onto the card you would receive 2500 points under the rewards program which translates into $25. Then, once you make your first purchase on the card (no matter how small), you receive another 2500 points or $25. Thus you will receive rewards equal to $50, which, coincidentally, is the amount of the balance transfer fee you would have to pay.
You transfer $2,500 from your high interest rate credit card to your new card, pay 0% on that card for 9 months, and effectively transfer the balance for free.
Example #2 - Applying For The $29 Annual Fee Credit Card
If the balance you are transferring is higher than $2,500, you may want to consider the "$29 Annual Fee" card. Let's say you planned on transferring $5,000. Well, with the $29 annual fee card you would receive 5000 points (worth $50 dollars) for transferring this amount. And, once you make your first purchase on the card you get another 5000 points (another $50).
So now you have $100 to use as a payment towards your new credit card, which covers the $50 balance transfer fee, and the $29 annual fee, and leaves an additional $21 to put towards your existing credit card debt.
O.K. enough chatter. The balance transfer card I am referring to is...
The best balance transfer credit card is hands down the...
Because of the way the rewards program is structured, combined with the cap on the balance transfer fee, it is possible to transfer a credit card balance to this card, pay 0% APR on that balance for 9 months, and effectively pay no balance transfer fee.
Simply the best balance transfer credit card on the market right now.