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 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.

Additionally, there are presently no major credit cards online that offer a 0% APR for a full year on no fee balance transfers. Thus, unless you repay your balance in full within the 6 month 0% period, you may end up spending signigicantly more money on interest with a no fee card than you would have had you opted for a card that charged fees and offerred a 0% APR for a full year.

Situation 3: 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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*Important Disclaimer: See credit card applications for complete terms and conditions. While Smart Balance Transfers makes reasonable efforts to maintain accurate information, all credit card information is presented without warranty. When you click an “Apply” button, you can review the credit card terms and conditions on the issuing company’s website.