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Top Balance Transfer Card
In short, the best balance transfer credit card is going to be the one that allows you to save the most money on interest. This particularly holds true when it comes to larger balance transfers. For this reason we've selected the Slate® from Chase as the top balance transfer offer. This card is an exceptional deal as the card provides a 0% APR for 15 months on balance transfers and does not come with a balance transfer fee. Typically a balance transfer fee charges 3% of the total amount moved to the new 0% card which really hampers savings potential. Not only does Slate® provide freedom from this charge but the 0% term of under a year is just shy of the 18 month terms that competing issuers currently provide.
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- No Balance Transfer Fee!*
- 0% Intro APR for 15 months on purchases and balance transfers
- Transfer your higher rate balances during the first 30 days your account is open and you will pay no balance transfer fee!
- After the first 30 days, the fee for future balance transfers is 3% of the amount transferred with a minimum of $5
- Avoid interest on everyday purchases
- Pay down your balance faster
- Zero liability on unauthorized purchases*
- No Annual Fee*
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Intro APR
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Intro APR Period
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APR
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Annual Fee
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Balance Transfer
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Minimum Credit Required
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0.00%*
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15 months on purchases*
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11.99-21.99% (Variable)*
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$0.00*
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Yes*
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Excellent
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Maximizing Savings With Balance Transfers
Before we touch on how to save the most money with balance transfer credit cards, we have to first address a few topics relating to the nature of these deals. The first would be to make sure that when you move existing debt from one card to another that you make sure that you make timely payments on your new account. The common misconception is that a card with a 0% intro rate means that you don't have to make any payments at all until the term expires. This is not the case at all. You still will have to make your monthly minimum that is typically calculated as a portion of your debt. The calculation varies from issuer to issuer but the end result is usually around 2% of the outstanding dollar value or principal of the loan. If you're on a budget, once you receive your new card in the mail you may call the number on the back and speak to a customer service representative who will inform you of how that particular institution is calculating your minimum payment.
The reason why we mention this in the first place is that if you do not make timely payments, i.e. your minimum payment or greater on your new credit card account that you have used to transfer a balance, you may forfeit your 0% transfer rate. This could be potentially devastating as the reason why you've elected to move your debt to the new deal in the first place is to save money. If you lose the intro rate, you miss out on savings and in all likelihood will be best suited to search for another deal prematurely. In the past there have been cases with some issuers where pleading with them over the phone to restore intro terms forfeited by failure to pay bills on time has worked. Due to the current economic climate and while the lending industry is improving, chances are that your new issuer will force you to pay the consequences...literally. The fact is that with the array of automatic bill pay and other payment efficiency/convenience features there really isn't a reason why you shouldn't be able to pay your bill on time. The Government has implemented a strict set of guidelines on banks to make sure that they are sending out credit card statements in a timely fashion to make sure that consumers can make their payments in a timely manner.
Now that we've covered that, let's begin to discuss how to maximize savings. First, identify a balance transfer credit card. Once you have found an enticing offer, compile a list of your existing accounts that you want to move to the new deal. If you have just one it makes the process a bit easier, but in the event that you have several, here's a method that will help maximize savings. This strategy assumes that most of your balances are of somewhat equal amounts. If they aren't you'll need to sit down and take a look at which ones are responsible for the highest interest accrual on a monthly basis.
When you go to transfer your balance online, you will typically be able to move up to three different accounts to your new balance transfer credit card. When you are asked to input the information on your online application, list the highest interest rate account first. The reason why you probably want to do this is that you may not be approved for a credit line that covers all of your balances. The standard procedure among most issuers is to transfer the balances on the cards sequentially in the order they are inputted on your application. This is why more than likely you will want to list the highest amount first. After that, list the second and then the third.
There are a few other factors that may alter this process. If one of your cards has an annual fee with a similar balance and interest rate to another, it makes more sense to list that one first. Because all situations are unique, the most important thing to do is to list the cards that are putting you deeper in debt first. Prioritization is key when selecting a balance transfer credit card. Check your statements to see which transactions will save you the most money if moved and act accordingly.
Using a Balance Transfer Card for Purchases when a 0% APR is Offered
Many balance transfer credit cards come with 0% purchase rates. Whether you elect to use that card for purchases is completely up to you but in many cases that can lead to confusion and ultimately, trouble. You'll notice that the offers with the longest 0% terms for transfers typically have a lower term length for interest free purchases. It makes more sense in many cases to use your balance transfer card just for savings from existing accounts. If your financial situation dictates that you will inevitably need to use the card for purchases, it may make more sense to apply for a different card from a separate financial institution to use for your other expenses. In general, it isn't a great idea to spend money you don't have, but unexpected situations do arise. If you find yourself in one of those predicaments, seek out a different offer from another issuer. We've listed our pick for the top 0% APR credit card at Credit Card Education but there are other 0% APR credit cards available on our site as well.
Note that if you are interested in a card for purchases because you want to earn rewards for spending, you may also want to consider a charge card. While these come with excellent rewards programs and are issued solely by American Express, you will be required to pay your balance in full every month as they don't charge interest and you will need to have and excellent credit rating to be eligible.
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