How to Choose the Best No Interest Balance Transfer Card

4 minute read

By Help Me Team

A no interest balance transfer card allows you to shift your balance from a high-interest card to one with no interest for a set period, helping save and pay down debt. Start a search to learn how to choose the best no interest balance transfer card.

These cards can be a lifeline for managing debt. However, choosing the right card is not straightforward, as it depends on various factors like transfer fees, the length of the no-interest period, and your financial habits.

How Does a Balance Card Work?

A balance transfer card with 0 percent interest sounds great, but there’s more to it. This zero interest is only for a limited time, not forever. Some cards offer this deal for up to 21 months.

After this intro period, any remaining balance starts getting interest at the card’s normal rate. That’s why it’s best to pay off all your balance before this special offer ends. This way, you can really benefit from the no-interest deal and avoid extra costs later.

Evaluating Transfer Fees

It’s important to look at transfer fees. These fees are usually between 3% and 5% of the amount you are transferring. This might not sound like much, but it adds up. For every $1,000 you transfer, you could pay an extra $30 to $50. Think about whether the savings in interest during the 0% period outweigh these fees.

Also, sometimes, a higher fee is worth it for extra benefits, like more time without interest or flexibility on late payments. But if you’re good at paying on time, a card with a lower fee might be better. There are cards with no transfer fee, but their 0% periods are usually shorter.

Understanding the No-Interest Period

The no-interest period on a balance transfer card is a key feature. A longer period, like over a year, is better because it gives you more time to pay off the balance without interest. This means you can have smaller monthly payments, which helps if you have other bills.

The U.S. Bank Visa® Platinum Card is an example of a card that offers a long no-interest period. But remember, you should try to pay off the whole balance before this period ends. After it’s over, the card will start charging its normal interest rate, which is usually much higher than 0%.

Also, don’t forget to make your monthly payments on time, or you might lose the 0% deal and face higher charges. Remember, this card should help you get rid of debt, not just hide it.

Credit Score Requirements

When looking for the best no interest balance transfer card, your credit score is key. Usually, the top cards need a very good or excellent score, meaning a FICO score of 740 or more. But, you might still get approved with a good score, which is between 670 and 739.

If your score is lower, there are cards for you too, but they might not have the best terms for paying down debt. Before you apply, it’s a good idea to check your credit score. Knowing your score helps you understand which cards you could get.

Post-Introductory APR

After the introductory 0% APR period on a balance transfer card ends, the card’s regular APR kicks in. This rate is usually higher and applies to any remaining balance. So, it’s really important to try to pay off your debt during the no-interest time. If you don’t, you’ll start paying interest at the normal rate, which can be a big jump from 0%.

Understanding the regular APR is key when choosing a card. It helps you plan how to handle any balance left after the introductory period. Remember, the goal is to reduce debt, not increase it with high interest later.

Additional Card Features

When choosing a no interest balance transfer card, it’s also smart to think about the long term. Some cards offer great rewards, like cash back on what you buy. They might even have benefits like insurance or special features for purchases. These perks can make a card valuable beyond just the balance transfer.

But be careful – if you’re trying to pay off debt and you keep spending on the card, it could slow down your progress. You might end up not getting ahead financially. So, picking a card is about finding a good balance between these extra benefits and focusing on paying off your debt.

Start Searching Today!

Choosing the best no interest balance transfer card requires careful consideration of various factors, including transfer fees, the length of the no-interest period, your credit score, post-introductory APR, and additional benefits. By meticulously comparing these aspects, you can select a card that not only helps manage existing debt but also aligns with your financial goals.

Remember, the right choice can make a significant difference in your debt reduction strategy. Continue searching online to learn more about how to choose the best no interest balance transfer card.

Help Me Team