In this article, we’ll look at what factors are most important for paying off debt with a balance transfer card. We’ll also talk about rewards, sign-up bonuses, and interest rate. And we’ll compare the interest rates of the top cards in terms of their balance transfer rates. These factors are important in determining which card is best for you, so make sure to read through this entire article before you make a decision.
Paying off debt with a balance transfer card
A balance transfer card allows you to pay off your existing debts, such as credit card balances, by moving them to a new card. You may be able to reduce your principal balance on this new card and avoid interest during the introductory period. It is important to note, however, that these calculations are estimates and your actual finance charges will vary. To avoid unexpected charges, apply for a balance transfer card with a low introductory rate.
When applying for a balance transfer card, the first step is to initiate the transfer. You can initiate the transfer through a number of methods, including mail, telephone, or online. When you initiate the transfer, you must provide the card issuer with account information and the amount of debt you wish to transfer. Once you’ve decided which balance transfer card to apply for, the next step is to make a plan to pay off your debts. Using a budget will keep you from falling behind and will make this process easier and more convenient.
Sign-up bonuses
The best credit cards for balance transfers are ones that waive the interest rate entirely for the introductory period. While this offers a great introductory period, it is important to remember that this 0% APR is not permanent. Once the introductory period ends, the cardholder will be charged the default interest rate. This interest rate is usually high, compared to the 0% APR, and can catch the user off guard. While some cards waive the balance transfer fee, the majority charge around 3% to 5% of the transfer amount. To avoid this fee, choose a card with a low promotional interest rate.
Another option is the Capital One Quicksilver card. This card offers high rewards with no minimum redemption requirements. It also offers a sign-up bonus of $200 for a 15-month 0% introductory period on purchases and balance transfers. However, you must keep in mind that this card doesn’t have an annual fee and comes with a high introductory rate. Moreover, the fee is waived if you make your first payment on time.
Rewards
When transferring your balance to a rewards credit card, you’ll receive some cash back, and sometimes, you’ll get rewards as well. You should always pay off your transferred balance first and then use your card’s rewards to make new purchases. Then, pay down the balance you transferred to your new card each month. This way, you won’t end up paying interest on the new balance after the introductory period expires.
To avoid paying interest on your debt, you should choose a rewards credit card. You can also look for cards with introductory offers, perks, or rewards. However, the best rewards credit card offers will not be worth it if you end up paying late fees or interest on your balance. When you choose a rewards credit card, you should pay off your balance each month, make your payments on time, and only spend money you can afford.
Interest rate
There are some things you should know when it comes to choosing the best credit cards for balance transfers. Banks are notoriously finicky, so it’s important to study offers carefully. You’ll likely be able to find the best balance transfer offers if you apply to several different companies. A quick search on the major list should produce a list of balance transfer offers. While it is possible to get an excellent interest rate on the first card you apply for, you should still carefully examine the terms and conditions of any other offer.
The best credit cards for balance transfers usually offer low introductory interest rates. Some have 0% introductory periods that apply to transferred debt, so you can benefit from that for 15 or 20 months. The introductory periods are typically 15 or 21 months, meaning that you could have no interest on the balance transfer until 2023 if you pay it off during the intro period. Many balance transfer credit cards also have other benefits, such as rewards for everyday purchases or other useful perks.
