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.
When searching for a lower balance transfer credit card, be sure to assess these three key features:
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.
Here are the top 3 best low balance transfer credit cards for 2018 to help you with your choice.
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.
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.
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%.
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.
If you are looking to consolidate your debt or pay off large credit card expenses without having to pay heavy interest and added charges, a Balance Transfer Credit Cards is for you.
We can help you find and apply for the best balance transfer credit card with low-interest rate.
Balance Transfer: 1.99% for 6 Mnths
Cash Advance: 11.99%
Sign-up BonusSpecial 1.99% introductory interest rate on Balance transfers for the first six months†
No Annual Fee
Balance Transfer: 16.99%
Cash Advance: 16.99%
Sign-up Bonus3.99% Introductory interest rate on Balance Transfers for the first six months†
No Annual Fee
Balance Transfer: 1.95% of amount transferred**
Cash Advance: 19.95%
Sign-up Bonus1.95% Balance Transfer & Earn 2% Money-Back Rewards on purchases
Balance Transfer: 1.99%
Cash Advance: 22.99%
Sign-up BonusWelcome Bonus 2,000 Air Miles & 1.99% Balance Transfer for first 6 months
Balance transfer credit cards are credit cards specifically made and used to pay off other credit cards (balance transfers). Below is an exploration of how balance transfer credit cards work and how you can use them properly to save money.
A balance transfer is the use of one credit card to pay off another credit card. The balance is shifted between cards; the new card takes the balance of the old card and the old card remains valid but with a zero balance.
To attract new business, credit card issuers have designed a solution for customers with credit card debts by linking them up with another lender to make them switch over and use their credit cards. The credit card issuers provide a credit card with a promotional balance offer, which is available for a limited span of time. This enables customers to shift the balance over with the hope that they will be subscribers even when the offer period has expired.
Mainly a person may consider a balance transfer if they have credit card debt on one card and there is a low-interest credit card rate (sometimes 0%) to transfer to another card. This low introductory interest rate is only valid for a short period (6 to 12 months). The idea is viable if you can pay down your debt within this short promotional period.
Balance transfer should save you money but it may fail due to the following:
The credit card issuer usually charges a balance transfer fee in the range of 1 to 5% of the amount your transfer offers. The switch could be worthless based on the interest rate offered on the new card.
The low-interest rate is valid only for a short period of time after which you will be required to pay a higher interest rate (could rise up to 19.99%). This is also the case if you miss any payments.If you purchase anything with the balance transfer credit card before paying off the original amount, these purchases will also attract an interest.
If you purchase anything with the balance transfer credit card before paying off the original amount, these purchases will also attract an interest.
When used in the right way, a balance transfer can be a perfect idea that can work for you. For instance, if you make a major purchase and need some time to pay off, a low introductory interest rate can be a solution for you.
However, the plan may not work to your benefit if you plan to keep the balance past the introductory period, or if you plan to make any purchases with the card. In such a case, you should stick to your old card or consider looking at low-interest credit cards.
Balance transfer credit cards allow you to shift your existing credit card balance onto a new card with low or 0% rates that run for a fixed period of time (6 to 20 months), after which the interest rates returns to a higher percentage. In most cases, balance transfer to a new card attracts a one-off transfer fee and a no annual fee credit card. You can use this plan if you want to consolidate your debts and avoid a high-interest rate. Apart from the 0% interest rate, balance transfer credit cards can help you to save a lot of money when paying your debt.
You need to understand how balance transfer works to so as to lower your credit card interest payment. You also need to factor the various types of balance transfer card available in your market, the different balance transfer cards, and the mistakes to avoid when using balance transfer cards.
If you are struggling to pay high credit card fees and interests, you can lower your costs and reduce your repayment time and increase your saving with 0% balance transfer and $0 annual fee credit card. Our guide will help you compare options to take full control of your expenses.
You can take advantage of both the balance transfer and rewards card; a low or 0% interest rate to repay your debts. Once the debt is fully paid, you can start earning points on purchases made with your new card. You can use our guide to explore different options and factors before applying for your balance transfer credit card.
There are two ways through which you can apply for a new credit card;
You will be required to fill in the details of your existing credit card debt and request the balance transfer to your new card. Your debt will automatically be shifted to the new card (a process that takes only a few days). For a successful application, you need to meet the eligibility requirements.
Balance Transfer Fee: - This refers to a one-off fee paid to your new credit card issuer. It is mostly between 1 and 5% of the debt transferred to your new card. The balance transfer fee is mostly charged for a balance transfer with a longer promotional period.
The Need To Contact Your Own Bank: - Once you have provided the details of your existing credit card during application, the new card issuer will handle the balance transfer without involving you directly. However, you may have to contact you old issuer if you wish to close the old card to avoid maintenance costs and annual fees where applicable.
You may wonder how your card issuer will gain when they charge 0% interest rate, but they stand to gain in the following two ways:
It is not possible to do a balance transfer within the same banking institution. It is also not allowed to do a balance transfer to banks within the same group. Our list of banks which have locked balance transfer between each other will come in handy.
The promotional interest rate is valid for a specific period of time during which you will not pay high-interest rates. All the same, you are required to make the minimum monthly payment, and if you stick to the minimum monthly payment only, you will not have cleared your debt at the end of the promotional period.
Any debts remaining after this period will collect high-interest rates and your balance will continue to grow. However, the balance transfer is a safe process. You can go through our informative guide on how to avoid common mistakes for a smooth and effective balance transfer.
Most balance transfer offers are for credit card debts, but there are a number of issuers who allow debt transfer from your personal loan or store card. See our comprehensive list of banks that allows balance transfers from a personal loan.
Balance transfer credit cards are a great solution for people who want to consolidate their debt or pay off large credit card expenses without having to pay heavy interest and added charges for defaulting. These cards usually have extremely low-interest rates, which is convenient if you need to pay off a large amount.
Some credit card companies even offer balance transfer cards with 0% interest rates for new customers. The introductory low-interest offer is only available for a limited period of time, which can be from 180 days, 10 months, 1 year, etc.
You can pay back your debt in this period with low interest. After the introductory period is complete, your balance transfer credit card will revert to regular interest rates. Banks and lending institutions offer this program to bring in new customers and hope you will continue to use the card even after your debt or bills are paid off.
This card is easy to use. You just need to choose the right credit card for your requirements and submit the application. When your application is approved and you get the card, you can pay off your other cards and debts with your new balance transfer credit card.
The debt from your high-interest credit cards is cleared so you don’t have to pay more money to the credit card companies than you need to. Your monthly payments will go towards the principal debt amount rather than the accumulated interest.
If you have used a credit card ever, you already know about the hassles they come up with when it's all about interest rates. The flexibility that credit cards provide is not only convenient for your business purposes and busy lifestyle but also costly. A bank account is almost a safe option because you don't have to worry about the next statement coming at your hand as there is no 'debt' associated with those accounts.
But again, what could be the situation when you are in an urgent need of money but there is no way to get it instantly without waiting for the next paycheck? What if it's a health emergency or a purchase that you can't avail once you get the money needed at a later time? For these reasons and many others, credit cards are so much available among people from different job sectors.
If you are really burdened with debt that has been put forward by the high-interest rates charged by your credit card provider, you might have already searched for an alternative from the same bank or from a different bank that will charge you less than the previous one.
You have to transfer your funds from the previous card to the new card with lower interest rates. Or you might want to transfer your funds to another person's account.
This happens so often that a very high rate of interest rate is applied to your fund transfers too. To help you out in these cases and to meet your needs, different financial organizations in Canada are offering a new type of credit card which is called Low Balance Transfer Credit Cards Canada. The main aim behind these cards is to lower the transfer fees so that you can make as many transfer efforts as you want with a view to simplifying your credit card usage.
The main aim behind these cards is to lower the transfer fees so that you can make as many transfer efforts as you want with a view to simplifying your credit card usage.
These special cards usually have a flat rate applied which is almost same for all kinds of purchases and transactions. On an average, you will have to pay 0.99% charges for cash advances and 11.99% for every purchase and balance transfers. The annual fee is shortened in these packages too to make sure that you save hundreds of dollars while transferring funds is the major action that you perform with your credit card.
The annual fee is shortened in these packages too to make sure that you save hundreds of dollars while transferring funds is the major action that you perform with your credit card.
Just be aware of utilizing your grace periods and your usage quota for a better outcome. No credit card will charge you greater if you choose the low balance transfer cards at the right time.