The Best Balance Transfer Credit Cards for Consolidating Debt
If you have multiple credit card debts, you might be finding it hard to manage all of them. Debt consolidation through a balance transfer credit card could help simplify your finances and save you money. A balance transfer allows you to move high-interest credit card debt to a single card with a lower interest rate, making it easier to pay back quickly. In this article, we will review the best balance transfer credit cards available in the market.
1. Citi Simplicity Card
The Citi Simplicity Card is designed to simplify your financial life. It comes with no late fee, no penalty rate, and no annual fee. You also enjoy an introductory zero percent APR for the first 18 months after account opening on balance transfers and purchases. After the introductory period expires, the variable APR will be between 14.74 percent and 24.74 percent, depending on your creditworthiness.
Apart from the above features, the Citi Simplicity Card has other perks such as virtual account numbers for online shopping, travel protection, and identity theft solutions. However, the balance transfer fee is 5 percent or $5, whichever is greater, so you might want to factor that in when considering this card.
2. Discover it Balance Transfer
The Discover it Balance Transfer card is a good option for those looking for cashback rewards along with balance transfer options. You get cashback rewards on every purchase, and the card’s zero percent APR for balance transfers lasts for 18 months. The balance transfer fee is 3 percent, but there is no annual fee.
The cashback rewards plan is impressive as Discover will match all cashback earned at the end of the first year. So, if you earn $100 in cashback for the year, Discover will give you an extra $100 worth of cashback. You can redeem your cashback rewards for statement credits, gift cards, and credit at partner merchants.
3. Wells Fargo Platinum Card
The Wells Fargo Platinum Card has a zero percent introductory APR for 18 months for both balance transfers and purchases, making it easy to pay down your credit card debt. However, you will attract a balance transfer fee which is 3 percent or $5, whichever is greater.
The Wells Fargo Platinum Card has no annual fee, and you can take advantage of features such as overdraft protection, $0 liability protection for unauthorized purchases, and cell phone protection. This cell phone protection covers damage or theft of cell phones up to $600 per claim, with a $25 deductible. This feature is pretty impressive as it is not common among credit cards.
4. U.S. Bank Visa Platinum Card
The U.S. Bank Visa Platinum Card has an introductory zero percent APR for the first 20 billing cycles for balance transfers and purchases. After that, your APR will be between 14.49 percent and 24.49 percent variable, based on your creditworthiness.
The balance transfer fee for this card is 3 percent or $5, whichever is greater. There is no annual fee, and you can enjoy features such as free credit score access, cell phone protection of up to $600, and online banking.
5. BankAmericard credit card
The BankAmericard credit card offers an introductory zero percent APR for 18 billing cycles on balance transfers made within the first 60 days of opening your account. The balance transfer fee for BankAmericard is 3 percent or $10, whichever is greater. There is no annual fee associated with this card.
The BankAmericard credit card offers a variety of features that include overdraft protection, $0 liability protection for fraudulent purchases, and FICO credit score access. It is also easy to manage your account with this card as there are several digital wallets available for payments.
Conclusion:
The above-mentioned balance transfer credit cards are some of the best options available for debt consolidation. However, you should note that the transfer fee, interest rate, credit limit, and other factors may vary based on your credit score and other factors. Always make sure that you read the fine print before applying for a credit card and consider your ability to pay back the debt before taking it on.
FAQs About Balance Transfer Credit Cards
1. How does balance transfer work?
A balance transfer involves transferring high-interest debt from one or more credit cards to another with a lower interest rate. You generally receive an introductory low or zero percent APR that lasts for a set period, usually between six and 24 months. During this time, you can pay off the debt without accruing additional interest.
2. What is the balance transfer fee?
The balance transfer fee is a percentage of the total amount you transfer that is added to the balance of your new credit card. This fee is typically around three to five percent of the transfer amount, but it can vary depending on the card issuer.
3. Does a balance transfer hurt your credit score?
A balance transfer can affect your credit score, but the impact is usually minor and temporary. Whenever you open a new credit card account, it can lower your score temporarily due to a hard inquiry made by the issuer. However, as you make payments and reduce your balance, your score should start to recover. Moreover, balance transfer credit cards typically have higher credit limits than regular credit cards, which can help improve your credit utilization ratio and boost your credit score in the long run.
4. How many balance transfer credit cards can I have?
You can have as many balance transfer credit cards as you can manage, but it is important to be careful not to take on more debt than you can handle. Moreover, having too many credit cards can negatively impact your credit score, so it is essential to keep the number of credit inquiries and accounts to a minimum.
5. How long does it take for a balance transfer to go through?
The length of time it takes for a balance transfer to go through depends on the credit card issuer and can vary from three to 14 business days. During this time, you should continue making payments on your original credit cards to avoid late fees and interest charges.
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