Balance Transfer Cards to Pay Down Your Holiday Shopping Bill

To really benefit from your favorite rewards credit cards, you need to be free from credit card debt. But, the holidays have a way of sneaking up on us, and it’s possible you may have spent more than you liked. If that’s the case, you may wind up carrying a credit card balance into next year – a situation that is less than ideal.

Even though travel credit cards are amazing when it comes to earning rewards, they are a bad idea if you ever carry a balance. That’s because they typically have higher interest rates than regular cards or low interest credit cards.

Fortunately, it’s possible to avoid interest charges with a balance transfer.

 

How Balance Transfers Work

If you have credit card debt and don’t want to pay interest on your purchases, a balance transfer credit card might be the answer to your prayers. These cards let you transfer balances from other cards and loans in order to secure 0 percent APR for anywhere from 12 – 21 months.

Since each of these cards comes with its own unique offer, it’s really important to read the card’s terms and conditions before you move forward. For example, some balance transfer cards only offer 0 percent APR for 12 months while others offer 0 percent APR for 21 months.

Then, there are balance transfer fees – an upfront fee equal to 3-5 percent of your balance you need to pay when you use a balance transfer credit card.

The good news is, not all cards charge this fee.

 

Balance Transfer Cards to Consider

There are a ton of great balance transfer cards on the market, and the new year is a great time to sign up. Not only will you be able to stop paying interest on your purchases, but you can use new year momentum to work your way out of debt.

Some of the best balance transfer cards on the market include:

Chase Slate Card

The Chase Slate Card is one of the best balance transfers on the market. Not only does it not charge a balance transfer fee for balances transferred within the first 60 days, but it offers 0 percent APR on purchases and balance transfers for a full 15 months. This card doesn’t charge an annual fee.

Citi Diamond Preferred

While the Citi Diamond Preferred card does charge a 3 percent balance transfer fee, you get 0 percent APR on purchases and balance transfers for a full 21 months. If you have a lot of debt to pay off, it may be beneficial to pay the balance transfer fee to get a longer introductory offer with zero interest. This offer also comes with no annual fee.

Discover it

The Discover it is another no-fee option that works well for a balance transfer. While you’ll pay a 3 percent balance transfer fee, you’ll get 0 percent APR on purchases and balance transfers for 14 months. You’ll also get a free FICO score on your monthly statement and the potential to earn rewards.

 

Have you ever done a balance transfer? Why or why not? What is your favorite balance transfer card?