» Balance Transfer Credit Cards
The Ever-changing Balance Trasnfer Credit Card
Due to the current economic climate, wise consumers are looking for every opportunity to save or earn money. As consumer spending continues to remain low, savings rates are increasing, and many Americans are working diligently to reduce their overall credit card debt. While the concept of balance transfer credit cards is not a new one, these cards are seeing a revival as a tool for rapidly reducing debt and saving significant money in the process.A few years ago, the process of “stoozing” became a popular way for well-disciplined consumers to earn money from the credit card companies by taking advantage of 0% interest on balances and on transfers. The balance of the card could be drawn as a check and deposited to a high-yield savings account until the end of the introductory rate, then withdrawn and used to repay the balance in full. The interest paid on the savings was profit.
However, the credit card companies have generally stopped this practice by charging a transfer fee of up to 3% of the transferred balance. This particular avenue is not as worthwhile anymore, but there are other ways to benefit.
Stop Spending on Existing Accounts
In many cases, balance transfer cards will also provide an introductory 0% interest rate as well. If you qualify for this offer, one good option is to simply freeze the cards with higher balances and move ongoing expenses to the new card. This allows you to accelerate the repayment on the old card by eliminating interest charges on a balance carried forward with the new card. The cardholder also avoids any transfer fees with this option. For people with very high levels of debt, or with existing cards at a high interest rate, this may not be the best option.
Transfer Your Balance Intelligently
It is not always a good idea to transfer a balance to a new card. If the amount of the transfer fees and percentages is less than the amount you will save in interest, there is no reason to execute the transfer. Alternatively, for consumers with larger debt loads or with existing cards at higher rates of interest, the savings will likely outweigh the fees associated with the transfer.
Be Informed
As with any other financial product, read the fine print. Most introductory offers have very specific expiration periods, and these can be as short as six months. Once the introductory offer expires, the interest rate will revert to normal levels. This level, of course, depends on the credit history of the cardholder. Review carefully to ensure that either all debt will be paid off before the end of the period, or that the standard interest rate is still better than that on existing accounts.
Be aware that any late or missed payments can immediately end the introductory offers on most balance transfer credit cards. This means going from 0% APR on a balance to an immediate 19% or more if there are any mishaps. An issue of this type can completely eliminate any savings you might have realized. Apply for the best balance transfer credit card below or see also Balance Transfer Credit Card for more info.
Discover® More® Card - Long Duration Balance Tranfer
- 0% intro APR on balance transfers for 18 months, then the variable APR of 11.99% - 20.99%
- 0% intro APR on purchases for 6 months, then the variable APR of 11.99% - 20.99%
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
- Ranked #1 in customer loyalty (2011 Brand Keys Customer Loyalty Engagement Index report)
- 24/7 access to a U.S. based Account Manager within 60 seconds
- $0 Fraud Liability plus automatic mobile and email fraud alerts
- No annual fee, no rewards redemption fee, and no additional card fee
- Discover Card
| Intro APR | Intro APR Period | Regular APR | Annual Fee | Balance Transfers | Credit Needed |
|---|---|---|---|---|---|
| 0% | 18 full months on Balance Transfers; 6 full months on Purchases* | 11.99% - 20.99% Variable* | None* | Yes* | Excellent Credit |
Blue Cash® Everyday from American Express
- No annual fee, flexibility to pay over time
- Get 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back on all other purchases
- NO spend minimum, NO enrollment, and NO rotating rewards categories
- Get a $25 Referral Bonus for each friend or family member who is approved for the Card
| Intro APR | Intro APR Period | Regular APR | Annual Fee | Balance Transfers | Credit Needed |
|---|---|---|---|---|---|
| 0% | For up to 12 Months | 17.24% to 21.24% Variable* | $0* | Yes* | Excellent Credit |
IBERIABANK® Visa® Classic Card
- No annual membership fee
- Low variable rate of 7.25%, 10.25%, or 13.25% (Prime + 4.00%, Prime + 7.00%, or Prime + 10.00%) as of 4/1/10 based on the creditworthiness. This APR will vary with the market based on the Prime Rate. (If there is an interest charge, the charge will be no less than $1.00).
- Low Introductory APR on balance transfers of 1.99% for your first 6 billing cycles, this rate will not change during the introductory period. Applies to balance transfers processed within three months of your account open date. After that, your APR will be the same as your assigned purchase rate, based on your creditworthiness. This APR will vary with the market based on the Prime Rate.
- Online access to credit card account information
| Intro APR | Intro APR Period | Regular APR | Annual Fee | Balance Transfers | Credit Needed |
|---|---|---|---|---|---|
| 1.99% | 6 Months Balance Transfers | As low as 7.25% Variable* | None* | Yes* | Excellent |

