Visitors often ask what the best balance transfer credit cards are. In the past, the answer was complicated. Before the credit crunch/crisis, banks battled one another the offer the best balance transfer deals. Only one year ago, it was possible to get a balance transfer credit card that offered a 0% APR for a full year and charged no balance transfer fees. Today, its difficult to get a 0% APR for a full year.
The reasons are pretty obvious to anyone who owns stock in credit card companies like American Express (AXP), Capital One (COF), or Discover (DFS): these companies are hurting, and the banks they compete against are hurting even more. Just take a look at Bank of America (BAC) or CitiBank (C).
When credit was flowing last year, consumers looking for the best balance transfer credit card could choose between these three options:
1.) A 0% APR for 1 year with no balance transfer fees.
2.) A 0% APR for 15 months with a 3% fee
3.) A 2.99 APR for LIFE with a 3% fee.
Today, none of these offers are available. In fact, fixed APR balance transfers currently aren’t offered by any major credit card company, and the CEO of Discover remarked in the companies earnings call last week that fixed APR offers are unlikely to return anytime soon.
Thus, with no fixed APR for life offers in sight and no 0% for 1 year with no fee deals around, consumers looking to find the best balance transfer credit card should focus on getting a 0% APR for a full year. The emphasis here is on a full year, rather than “up to 1 year,” which is now the industry standard offering. Major banks that offer a 0% APR for “up to 1 year” maintain the ability to keep their offers looking competitive. However, the fine print of these offers reveals that only consumers with the best credit will get a 0% rate for a full year. Consumers with average, and even good credit may only get a 0% rate for as little as 6 months.
If you choose to apply for a credit card that offers a 0% rate for up to 1 year, it is best to wait until your card arrives in the mail before transferring balances so you can make sure you didn’t get hit with a 6 month intro period. Ultimately, however, the best option is to apply for a card that offers a 0% APR for year to all approved applicants. One such company that still offers 0% rates for a full year as of today is Discover. Most other companies are employing the “up to 1 year” bait and switch.
For more information on the best balance transfer credit cards currently available, please use the navigation on your left to peruse the credit card offer section of Smart Balance Transfers, where you can compare offers and apply online.
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