What are the best balance transfer credit card offers? It’s a common question for any card holder who decides to find the best option and reduce the debt. It is also one of the most sought credit cards. The choice of the best balance transfer offer depends on a number of factors. Here we will examine some common situations where there is certainly a better balance transfer option.
Instance 1: You decide to reduce your current interest rate and use a card for shopping
In this instance, a credit card that offers an interest rate of 0% on purchases and balance transfers is necessary. Offers for these credit cards are quite common and cardholders can get 0% interest rate for 12 months. This balance transfer option reduces your current interest expenses and interest on new purchases.
A drawback of most of these credit card balance transfers is that most credit cards will impose a 3% balance transfer fee up to $ 120. However, even with the balance transfer fee to transfer a $ 5,500 balance from a card with an interest rate of 15.99% still save you over $ 500 on interest, not including the money you save on new purchases. For most, these balance transfer credit card offers are the best.
Instance 2: You decide to transfer a high balance and not to use a card for shopping
Looking for credit card balance transfers at no cost is a difficult task these days, as most providers no longer offer them. However, with this type of card, the transfer of a $ 5,500 balance from a credit card that charges 15.99% interest you will save over $ 500.
A major drawback to any offers of balance transfer at no cost is that most do not offer a 0% rate on purchases. So if you make any purchases, you can end up losing the money saved on the balance transfer. Fortunately, there is a way around this option. You can use two different credit cards for balance transfer and making purchases.
Instance 3: You decide to repay your debts over a long period of time
If you prefer to pay off your outstanding balance over a longer period of time, an account with fixed APR is probably the best balance transfer option. Fixed APR credit card balance transfers typically offer a rate of 3.99% to 4.99% until the balance is repaid. However, if you intend to pay your balance over a period of 3 years, a fixed APR balance transfer is a way to save your money.
