How to Find the Best Balance Transfer Credit Card

A balance transfer credit card is a specific type of credit card that allows you to transfer balances from other credit cards onto that credit card. Typically, if you do this within the first few months of opening the card, you can even have an introductory period where you’re able to pay off that balance with 0% APR. If you’re looking to find the best balance transfer credit cards, here are a few ways to do that.

1. Compare Introductory Offers

First of all, you want to compare the introductory offers available. Different balance transfer credit cards will have different introductory offers; typically, they will all be 0%, but they may be available for different periods of time. You may see an introductory APR offer that’s available for as little as about 6 months or as much as 20 months or more. A longer introductory offer may be necessary if you have a lot of debt to pay off.

2. Look at Balance Transfer Fees

Balance transfer fees are fees that you have to pay so you can transfer a credit card balance to the new card. It’s common to see balance transfer fees at anywhere from about 2% to 5%. You may also see a flat fee, often $5-$10, that may be charged for especially low balances. Obviously, you want to opt for a lower balance transfer fee if at all possible, but that lower fee may also come with fewer months for your introductory APR.

3. Check for an Annual Fee

Annual fees are something that you’ll typically want to avoid with a balance transfer credit card. Most of the time, a balance transfer credit card won’t have an annual fee, but it’s still worth it to check before you sign up. If you’re trying to pay off credit card debt, you don’t want extra debt, and that annual fee can end up being a bit too much to handle if you’re already in a difficult place with your debt.

4. Determine If There Are Any Rewards

Not many balance transfer credit cards have great benefits beyond the balance transfer options. It’s common for people to use these credit cards for a fairly short period of time, which means they often don’t’ have cashback or rewards programs, and they may not have any great benefits that can cause you to keep the card for very long. However, some cards will retain general credit card benefits, which can make it a great credit card for general use, especially if you’re rebuilding credit.

Conclusion

A balance transfer credit card can be an amazing tool for people who need to transfer a debt from a credit card that’s currently charging a high percentage of interest. If you’re currently paying a lot of interest on credit card debt, a balance transfer credit card can be a great option. These four steps will allow you to find the right balance transfer credit card for your specific needs.