How to Select the Best Balance Transfer Credit Card

If you’re ready to attach the credit card balance you’ve been carrying around then a balance transfer credit card is likely a good fit for you and will help you avoid fees and interest charges as long a s possible.  We’ve outlines a few tips and tricks to help you get the most of your balance transfer card

At first glance, the 0% APR introductory period is selling point for these cards, but they are not all equal.  Look for:

Lowest Interest rates once the introductory low interest period ends

Minimal Balance transfer fees, which can range from 1%-5%. Occasionally card issuers will run promotions with 0% balance transfer fees.

Low Penalty Interest Rates will be important if you happen to miss even a single payment.  Card issuers are unforgiving and you’ll be stuck with the higher interest rate until your balance is completely paid off.  These APRs  can top 29%.  Take advantage of  an automatic payment plan to ensure that you don’t get stuck with a penalty rate.

Applying your payments to high interest balances first. Luckily for consumers, The CARD Act changed regulation, forcing card issuers to apply payments above your minimum payment to your charges with the highest interest rates first.  Previously banks would only pay off higher interest balances after all lower interest accruing charges had been paid off.  If you have multiple credit card balances keep your sights set on the highest interest balances so that you can minimize the interest you pay over time. 

Best Balance Transfer Offers

Credit Card companies are anxious to win over new customers and this results in some fierce competition between card issuers leads some hugely beneficial introductory offers, such as 0% for 21 months and a lower than average 3% balance transfer fee with the Citi Diamond Preferred Card.

Qualifying for a Balance Transfer Credit Card

If your credit score makes you look like a bit of a risk to major card issuers offering 0 APR balance transfer offers, or even if you simply have a high utilization ratio (high balances on your cards) you may need to use a good secured credit card to build up your credit score in order to be eligible for  for a good balance transfer card. The Orchard Bank Card is a great card if you find yourself in this position.