4 OF THE BEST BALANCE TRANSFER CREDIT CARDS

GET YOUR DEBT UNDER CONTROL

Using credit cards to make purchases and handle your money is practical. On the other hand, credit card debt may mount up quickly, and paying off the balance can be challenging due to high interest rates. Credit cards with balance transfers are one approach to deal with this.

We’ll go over what balance transfer credit cards are, who can apply for them, which are the best options in the US and Australia, and when it might be a good idea to think about getting one in this post.

WHAT ARE BALANCE TRANSFER CREDIT CARDS?

Credit cards that let you move your current debt to a new card with a lower interest rate are known as balance transfer credit cards. Put differently, you are transferring your debt from one credit card to another, preferably one with a reduced interest rate. By doing this, you can reduce your interest costs and accelerate the repayment of your debt.

Credit cards that facilitate debt transfers usually come with an initial 0% interest rate that lasts for a set amount of time, usually between six months and two years. You won’t be required to pay interest on the transferred sum during this initial term. The interest rate will rise following the end of the introductory period.

WHO IS ELIGIBLE FOR BALANCE TRANSFER CREDIT CARDS?

Customers with strong credit scores can typically apply for balance transfer credit cards. You might not be eligible for a debt transfer credit card if your credit score is poor.

Furthermore, eligibility for certain cards may depend on a minimum credit limit or a specific income level.

WHEN TO CONSIDER A BALANCE TRANSFER CREDIT CARD

If you are having trouble making your monthly credit card payments and have a sizable amount of debt, a balance transfer credit card can be a smart choice for you. You can reduce interest costs and pay off your debt more quickly by moving your balance to a credit card with a lower interest rate.

It’s crucial to remember, though, that a balance transfer credit card is not a miracle fix for your financial issues. It is still your responsibility to pay off your balance before the introductory period expires and to make your payments on time.

TOP BALANCE TRANSFER CREDIT CARDS IN THE UNITED STATES

  1. Citi Simplicity Card: There is no annual fee and no late fees for the first 12 months of debt transfers with this card. The interest rate will rise to a variable annual percentage rate (APR) of up to 29.49% after the promotional period, based on your creditworthiness.
  2. Chase Freedom Unlimited: There is no annual fee and this card offers 0% APR on balance transfers and purchases for the first 15 months. The interest rate will rise to a variable annual percentage rate (APR) of up to 28.49% after the promotional period, based on your creditworthiness.

TOP BALANCE TRANSFER CREDIT CARDS IN AUSTRALIA

ANZ Low Rate Credit Card: There is an annual fee of $58 after the first year, with no fees in the second year. The interest rate will rise to a variable annual percentage rate (APR) of 12.49% after the introductory period.

St. George Vertigo Platinum Credit Card: This card offers up to 55 interest-free days on purchases only and is available for a $99 annual fee. The interest rate (purchase rate) will rise to a variable annual percentage rate (APR) of 12.99% following the introductory period.

ELIGIBILITY AND HOW TO APPLY

You need to have good credit and be at least 18 years old in order to apply for a balance transfer credit card. In order to prevent paying interest, you should also have a plan in place to pay off the amount transfer during the introductory period. It is significant to remember that your credit score may drop momentarily if you apply for a balance transfer credit card.

You can apply by calling the credit card issuer’s customer service line or by visiting their website. You’ll need to enter your personal information, including your name, address and social security number. You will also be required to submit details regarding your employment and earnings.

WHEN IS A BALANCE TRANSFER CREDIT CARD APPROPRIATE?

If you wish to pay off your high-interest credit card debt with a single, lower-rate payment, a balance transfer credit card may be a smart choice. If you want to spread out the payments over a longer time period without paying interest and are planning a large purchase, this can also be a suitable alternative.

To prevent paying interest, it’s crucial to make a strategy to pay off the balance transfer before the introductory period expires. Also, since new purchases can have interest charged at a greater rate than the balance transfer, you should refrain from making new purchases with the balance transfer credit card.

FINAL NOTES

If you want to pay off debt more quickly and save money on interest, a balance transfer credit card can be a wonderful choice.

The length of the promotional period, the interest rate after the intro period, and any debt transfer fees should all be taken into account when selecting a balance transfer credit card. To prevent paying interest, it’s also critical to have a strategy in place for paying off the balance transfer before the intro period expires.

You may take charge of your debt and make improvements to your financial status with the appropriate balance transfer credit card and a well-thought-out plan.

 

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