For people who have credit card arrears, there is possibly no smarter bank-beating technique than to have a bank loan you its own money free of charge. That is precisely the function of a zero percent balance transfer credit card – by enabling you to relocate your high-interest store card and credit card loan to a balance transfer credit card that has a lower interest rate, normally between 0% and 2.99%, for 6 to 12 months.
How to Choose The Best Balance Transfer Credit Card for You
When searching for a lower balance transfer credit card, be sure to assess these three key features:
- The balance transfer charges
- The rate of interest
- The span of time that the promotion will continue
You do not want to be paying 3% in charges just to attain the concession of a zero percent bid. But simultaneously, you do not want to settle for a short-term promotional period, one which will not give you sufficient time to completely pay off your debts, before the standard interest kicks in.
Top 3 Best Balance Transfer Credit Cards for 2018
Here are the top 3 best low balance transfer credit cards for 2018 to help you with your choice.
MBNA Platinum Plus MasterCard
If your aim is to decrease debt as quickly as possible, then the MBNA Platinum Plus MasterCard is your best bet. There are zero yearly fees, and the promotional rate of 0% interest will last you for 12 months, which is 2x the length of time when compared to the rest of cards present in the list.
In addition to the 1% balance transfer fee, you will pay no interest for the first 12 months, which will give you plenty of time to pay off your debt. Moreover, you will get some basic perks such as extended warranty, purchase assurance, rental car insurance for personal injuries and collision, and basic travel insurance.
You normally can receive the 0% from MBNA numerous times, even if you have had it before and canceled it. In some instances, you can keep two of the same card at a single time.
American Express Essential Card
The American Express Essential is truly a low-interest card that also has a 1.99% interest rate on balance transfers for 6 months. You will only be allowed to utilize 50% of your total credit limit as a balance transfer, which is ideal for maintaining a good credit score. The good news is that if you fail to pay off your entire balance in just 6 months, then the average interest rate that sets in later is only 8.99% on purchases, cash advanced, and transfers. There is significantly less pressure and stress for sure.
The additional good news is that the regular 3% balance transfer charge is completely lifted off for the preliminary 1.99% offer so there will not be any sudden surprises with this card.
This low-interest package is pretty hard to overlook since you get all the benefits with zero annual charge.
Scotiabank Value Visa Card
The Scotiabank Value Visa Card is a balance transfer credit card that offers you a 0.99% interest rate on balance transfers for the initial 6 months. However, there is an annual charge of $29. The benefit of this card is that after the 6-months introductory period, the standard rate of interest would be 11.99% on your new purchases and transferred balances. It is recommended that you try paying off your balance throughout the promotional time period. If you fail to do so, the next best thing to do would be to transfer your balance to a different low balance transfer offer, one month before the promotional rate becomes invalid. That way, you will be guaranteed to go past even a low-interest rate of 11.99%.
Best Balance Transfer Credit Cards – Takeaway Thought
In Canada, a 0% balance transfer credit card is rather difficult to find. As is evident, there are just two zero percent offers available in the entire country at the moment. Nevertheless, a zero percent balance transfer rate for a year is much better as compared to any conventional loan options.
Even though you cannot transmit your balance from one TD/MBNA card to the next, however, you can choose to go with balance surfing from an MBNA to an Amex card, back to your MBNA card, to a Scotia card, and back to your MBNA card, and so on. You can also get more than one Platinum Plus credit cards, for the purpose of cycling them in the 0% deal.