Use Balance Transfers to Reduce Credit Card Debt
If you carry credit card debt, it may cost you a lot of money on the interest. Don’t worry. Balance transfer credit cards can help you pay down the debt. You just need to open a new credit card with 0% intro APR on balance transfers, and request to transfer your current credit-card balance to the new card. After that, you can just make the minimum payment each billing cycle to avoid finance charges and pay off all the remaining balance at the end of your 0% introductory period. In this way, a balance transfer credit card helps you save money by reducing the cost of high interest.
How much can you save with a balance transfer card? For example, if you have a credit card balance of $10,000 with 18% APR, and to pay it off in 18 months, you would need to pay $640 each month for 18 straight months. You will end up with paying interest of approximately $1,480. With a 0% APR balance transfer credit card, you will have the option of keep most of the $640 monthly payment in your bank account and pay off the balance 18 months later without paying any interest. Most credit cards charge a one-time service fee for doing a balance transfer. For example, for each qualifying balance transfer, BankAmericard Credit Card charges 3% of the transferred balance. For $10,000 to be transferred, the transaction will cost about $300 in fees. With about $1,480 in potential interest cost that you saved, you will save approximately $1,180 by using a 0% balance transfer card.
Balance Transfer Credit Cards
Choose from one of the following credit cards that offer 0% on balance transfers for at least 12 months. All these credit cards are for people who have good or excellent credit rating. If you have a credit score of 700 or above, you may qualify for these offers.
|Credit Card||0% Introductory Interest||Annual Fee|
|BankAmericard® credit card||0% on purchases and qualifying balance transfers for 18 billing cycles||$0|
|Wells Fargo Platinum card||0% on purchases and qualifying balance transfers for 18 months from account opening|
(rates & fees)
|Citi® Diamond Preferred® Card||0% on purchases and balance transfers for 18 months||$0|
|Citi® Double Cash Card - 18 month BT offer||0% on balance transfers for 18 months||$0|
|Bank of America® Customized Cash Rewards credit card||0% on purchases and qualifying balance transfers for 15 billing cycles||$0|
|Citi Rewards+® Card||0% on purchases and balance transfers for 15 months||$0|
|Blue Cash Everyday® Card from American Express||0% on purchases and balance transfers for 15 months|
(rates & fees)
|Wells Fargo Cash Wise Visa® card||0% on purchases and qualifying balance transfers for 15 months from account opening|
(rates & fees)
|Mastercard® Titanium Card™||0% on balance transfers made in the first 45 days for 15 billing cycles||$195 ($95 for each authorized user added to the account)|