What is the Best Balance Transfer Credit Card?

I. Introduction

Over the years, we've received countless emails from individuals wondering what is the best balance transfer credit card. Because every person's situation is unique, there is no straightforward answer to this question. However, there are certain cards that are better for certain types of credit card applicants. Here we will explore the best balance transfers for these situations.

II. Examples

Situation 1: You intend to use your credit card for a balance transfer and new purchases. In this situation, Discover® offers the best balance transfer cards, as Discover® cards offer a 0% rate on purchases and transfers, a low long term APR, and the opportunity to earn cashback rewards, such as 5% rebates on all gas purchases.

Situation 2: You are making a small balance transfer ($2,500 or less) and will not use your card for new purchases.

If you will not be using your new, or old, credit card for purchases, then a no fee balance transfer may be the best option. This will save the 3% transfer fee of up to $75 that most balance transfer credit cards charge. However, if you use your old credit card for new purchases, you end up paying interest that might end up offsetting your balance transfer savings.

Situation 3: You are transferring a large balance.

If, for example, you are transferring $5,000 or more, the maximum balance transfer fee you pay will only be $75, or 1.5% with a credit card that offers a 0% interest rate on purchases and balance transfers. Plus you'll have the option of using your new card for purchases as well. Again, a Discover® credit card may provide the best option.

Situation 4: You won't be able to pay off your balance in 1 year.

This is a common situation that many face. The best balance transfer option in this situation is to choose a credit card that offers a low interest rate once the 0% period expires. In this case, Discover currently offers very low regular APRs. A second option is to play the "balance transfer game." Essentially, this means transferring your remaining balance to a new 0% credit card at the end of the introductory period. Using this strategy can offset interest expenses for a few years, buying you more time to pay off your bills without accruing interest.

III. Conclusions

It's important to carefully consider your situation before deciding on a balance transfer credit card, as finding the best balance transfer credit card requires careful analysis of your current financial position. In many cases, however, the best balance transfer credit card option is the one that offers 0% interest on purchases and balance transfers.

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