There are various different ways to market a credit card. These method ranges from advertising credit card benefits such as cash back or travel redemptions to advertising lower credit card expenses. This section focuses on the latter method.
Credit cards are heavily associated with annual percentage rates, or interest rates, and penalty fees. These fees often cost extra when card holders do not adhere to proper credit card use. In other cases, these transaction fees and penalties come in to play often out of necessity. Card holders who require multiple balance transfers cannot avoid these fees which can rack up unforgivingly.
A set of credit cards are tagged for their low balance transfer rates which are targeted at customers who happen to rely on such transactions. These cards usually follow the same set of guidelines.
First off, many of the best balance transfer cards lack a set of rewarding benefits. Since these cards are saving money for their holder, they do not reward their customer for continual transactions. Think of it this way. Credit cards are advertised with either awesome benefits or low-cost fees and rates. The point behind these two credit card advertisements is to save the card holder money. They both achieve the same result, but if they are superimposed, they end up costing the card issuer too much money. Either one or the other is advertised with not much room for any middle ground.
Back to balance transfer credit cards, these cards generally offer no annual fee with an introductory transaction interest rate deal. These intro deals serve as the main headline for most of these credit cards. The introductory periods are usually longer than average, and the standard rates are normally lower than normal credit cards. The final result is a credit card that is not going to offer any cash returns, but it is not going to break the wallet either.
Below is a list of ten impressive credit cards with excellent balance transfer rates. Most of these cards share the same characteristics, but there are some variations regarding credit benefits and overall fee structure. The cards at the start of the list require excellent credit standing in order to be considered for qualification. These credit requirements decrease as the list continues until the last cards which require decent to poor credit. Here is the list.
The Top 10 Balance Transfer Credit Cards for 2016
Citi Diamond Preferred Card
APR: 12.24% - 22.24%
Balance Transfer Fee: $5 or 3% - whichever is greater
Balance Transfer APR: 0% for first 21 months, 12.24% - 22.24% after
Other Fees: NO annual, $35 late, $10 or 5% cash advance
This credit card takes the top spot among its rivals as the card with the lowest balance transfer annual percentage rate and fees. The card is unique in its own right due to its absurd introductory APR period (it pushes almost two years). Both regular purchase and balance transfer APR are set at 0% for the first 21 months with the Diamond Preferred Card. Afterwards, this introductory rate is nullified which leads to a range of new potential APRs. This new range starts at a low end of 12.24% and tops off at 22.24% for both regular purchases and balance transfers. Other APRs include the cash advance rate as well as the penalty APR. The former rate is 25.49% while the latter is 29.99%.
Another important aspect of this card is its transaction fees. The balance transfer fee is either $5 or 3%; the charge that generates the largest fee is used depending on each case. There are two different cash advance fees of either $10 or 5%; these charges work the same way as the balance transfer fee. Transactions made abroad are accompanied with a 3% foreign transaction fee. On a side note, returned and late payments are charged up to $35. Additionally, there is no annual fee for having this card.
Now that the rates and fees are out of the way, there are a couple of convenient things to mention about this Citi credit card. The card comes with EMV chip technology which is the up and coming global transaction technology. Speaking of around the world, card holders can take advantage of various travel and emergency assistance systems; additionally, accident and car rental insurance are provided abroad. On top of all this, all purchases with a manufacture warranty are protected by Citi Bank. The card comes with assurances when it comes to fraud and theft with $0 liability on unauthorized charges as well as theft protection.
Citi Simplicity Credit Card
APR: 13.24% - 23.24%
Balance Transfer Fee: $5 or 3% - whichever is greater
Balance Transfer APR: 0% in first 21 months, 13.24% - 23.24% after
Other Fees: NO annual, NO late, $10 or 5% cash advance
Citi Bank claims the first and second place on this list in terms of balance transfer rates with their Citi Simplicity Credit Card. This card shares the same introductory APR rate as its fellow Citi product in first place. For the first 21 months with the card, users can enjoy 0% APR on balance transfers and regular purchases. The major difference between this deal and the Diamond Preferred deal is the APR after the introductory period.
The balance transfer and regular purchase APR jump up to a range between 13.24% and 23.24%. These rates are slightly higher than the Diamond Preferred card. There are more differences in terms of penalty APR and cash advance APR. Instead of one rate, the cash advance APR sits between a range of 13.24% and 23.24% which is the same deal as balance transfers and regular purchases without the introductory period. Instead of a 30% penalty APR, the Simplicity Credit Card has no penalty APR.
There is one major difference between the Simplicity Card and the Diamond Preferred Card when it comes to additional fees. The Simplicity Card has not penalty fee for late payments while the Diamond Preferred Card does. All other rates are the same. Balance transfer fees are either $5 or 3%, and cash advance fees are either $10 or 5%. While there are two rates, only one is used which depends on the fee total. Foreign transactions are charged 3%, and penalties on returned payments run up to $35. One more thing, the annual fee is $0.
The Simplicity Card offers many of the standard perks that come with a Citi Credit Card. Like its Diamond counterpart, the Simplicity Card has EMV chip technology which is used around the world for additional security. There is assistance hotlines when it comes to travel or emergency assistance; additionally, car rental insurance is provided across the glove. There are purchase guarantees such as extended manufacture warranties and fraud protection.
BankAmericard Credit Card
APR: 14.24% - 24.24%
Balance Transfer Fee: $10 or 3% - whichever is greater
Balance Transfer APR: 0% in first 18 months, 11.24% - 21.24% after
Other Fees: NO annual, $37 late, $10 or 3% cash advance
Despite the top two sweep by Citi bank, Bank of America has a competitive credit card in terms of balance transfer rates. The rates may not be as good as what Citi offers, but this credit card deservedly takes place number three among the best balance transfer credit cards.
There is an introductory period for balance transfer APR (the rate is 0%) that lasts for 18 months from the opening of an account. After this period ends, the balance transfer rate has upper and lower bounds of 21.24% and 11.24% , respectively. This same range is used for regular purchase APR, but the introductory period deal is not offered. There are two cash advance APRs. First, there is a range for direct deposit and check cash advances; this range is 14.24% to 24.24%. Second, bank cash advances have an APR of 25.24%. The penalty APR is 29.99%. Each of these annual percentage rates are variable.
There are plenty of fees to list for various different transactions and instances. First off, there is no annual fee which is always a positive. There are multiple different rates when it comes to some transactions. While there are two rates, there is only one charge; it just depends on which rate generates a greater value. For wire transfers, a charge of either $10 or 5% is assessed. For balance transfers, either $10 or 3% are charged. There are a couple of rates for different cash advances. Direct deposit and check cash advances are charged $10 or 3%. Over the counter or ATM cash advances are charged either $10 or 5%. There is also a foreign transaction fee of 3%. Late payments are charged $37 while returned payments are charged $27.
Since the Americard does not come with too many benefits, its best highlights are the standard perks that come with all Bank of America cards. These perks normally include fraud protection and online purchase security. Card holders can reach their bank account information with simple text messages. There is chip technology which is becoming one of the standard technological improvements on credit cards.
This card is a decent product in terms of reducing additional expenses such as balance transfer fees. Low fees are always a positive, but this card lacks benefits which seems to be typical for top performing cards in this category.
Discover it Card
APR: 11.24% - 23.24%
Balance Transfer Fee: 3%
Balance Transfer APR: 0% in first 12 months, 11.24% - 23.24% after
Other Fees: NO annual, $10 or 5% cash advance, $37 late fee
Discover claims fourth place on this list with their Discover it Credit Card. It offers good balance transfer rates compared to the credit card pack, but not quite as extensively as the top three on this list.
When cardholders open up an account with this card, they experience a 0% introductory balance transfer and cash advance APR that lasts for 12 months. After the bonus deal period ends, the APR for both types of transactions increases to 11.24% to 23.24%. The standard cash advance APR is 25.24%. Luckily, there is no penalty APR with the Discover it Card. Each of these rates is not fixed; in fact, they are all variable depending on the market.
What would a credit card be without its penalties and fees? It would be pretty awesome, but that is not the case for all credit cards. The Discover it Credit Card has no annual fee which is sweet. There are not too many transactions fees as well. There is a flat balance transfer fee of 3%. The cash advance fee is either $10 or 5%, one rate is chosen depending on the fee value. The first late payment does not warrant a charge, but afterwards, late payments can be charged up to $37.
This credit card is the first one on this list to offer some sort of rewards program which is a huge positive. There are several cash back offers that come with this card. First, there is a special bonus cash back rate on category purchases. This rate is 5%, and it is updated every quarter of the year. All other purchases are subject to a 1% cash back rate. At the end of the first year of obtaining this card, all of the accrued cash back is doubled due to the cash back match offer from Discover. They basically award the card holder with a cash reward equal to the amount of cash back accrued over the first year.
While this card comes in fourth place, it is much more comparable to the top three due to its cash back benefits. The top three do not come with special rewards while this card does. Potential card holders must choose between low balance transfer costs or cash back rewards when considering this product.
Citi Double Cash Card
APR: 13.24% - 23.24%
Balance Transfer Fee: $5 or 3% - whichever is greater
Balance Transfer APR: 0% in first 18 months, 13.24% - 23.24% after
Other Fees: NO annual, $10 or 5% on cash advances, $35 late
Citi bank outdoes itself on this list with its third product appearance. This time, Citi Bank offers a card with low balance transfer rates and cash back rewards.
Starting its fees and annual percentage rates, there is an introductory balance transfer APR of 0% which is applicable for the first 18 months with an account. This rate increases to a range of 13.24% to 23.24% after this introductory period. While the regular purchase APR lacks the introductory rate, it has the same range as the balance transfer. Cash advance APR is set a 25.49%, but it is still variable. The penalty APR is 29.99% which is also variable.
Several fees for several different transactions and occasions apply. The balance transfer fee is decided between two rates: a flat rate of $5 or a rate of 3% are applicable. When cash advances occur, fees of either $10 or 5% are charged to the account. When foreign transactions take place, a charge of 3% is applicable. While the first late payment fee is waived, these charges generally cost $35; returned payments are always going to be a maximum of $35. Despite these fees, there is no annual fee for being a member.
Out of the three Citi credit cards on this list, this is the only one with any sort of reward system. All purchases get one cent of the dollar in cash back returns (or 1% cash back). When account balances are being paid off, Citi awards a 1% cash reward on the debt payments. The net result is double cash back which explains the title of this card. Here is an example. Spending $1000 gets $10 in cash back; paying that $1000 off gets another $10. The end result is $20 in cash back rewards.
This product is another mix between credit card rewards and low transaction fees. It makes for a good balance for someone who wants to get a little more out of their credit card. The cash back rewards system is a pretty decent one since it basically offers 2% on all transactions if handles properly.
Chase Slate Card
APR: 13.24% - 23.24%
Balance Transfer Fee: $0 in first 60 days, $5 or 5% after
Balance Transfer APR: 0% in first 15 months & 13.24% - 23.24% after
Other Fees: NO annual, $10 or 5% cash advance, $37 max late
Chase bank takes the number six spot on this list with the Chase Slate Credit Card. It is another card that is centered around offering low transaction fees and APR since it does not have any enticing benefits.
A somewhat unique introduction period and deal is offered with the Slate Card; for instance, balance transfer and regular purchase APR is 0% for the initial 15 months. After this introduction period terminates, these rates fall in between a range of 13.24% and 23.24%. When a cash advance or overdraft advance occurs, an APR of 25.24% is applied. There is no specific penalty APR with this card. As always, all of these rates are market dependent.
There are several stipulations involved with the transaction fees. The first balance transfer that occurs is not charged with a fee (provided that it occurs within the first sixty days of opening an account); after that, a charge of either $5 or 5% is applied to the transfer amount. Cash advance fees involve a fee of either $10 or 5%. Foreign transaction fees are charged 3%. There are some specific guidelines for late payment fees. Late payments on balances less than $100 can be charged up to $15. For a balance between $100 and $250, a maximum penalty of $27 is applicable. Finally, for payments over $250, a maximum fee of $37 is possible. There are no such stipulations for returned payments; these fees run up to $37 for any amount. Aside from these transaction fees, there is no annual fee to worry about.
Since the main benefit of this card is its low balance transfer fees, there are no special benefits offered to card holders. They still get the usual benefits that all Chase customers get such as free credit scores and fraud protection.
Overall, this is a decent card with limited hurtful penalties, but it lacks benefits which are highly sought after. The low APR and potential fees are what drives this card to number six on this list.
JetBlue Card
APR: 12.24%, 20.24%, or 25.24%
Balance Transfer Fee: $5 or 3% - whichever is greater
Balance Transfer APR: 0% in first year & 12.24%, 20.24%, or 25.24% after
Other Fees: NO annual, $10 or 5% cash advance, $37 late max
JetBlue, a popular airline company, has partnered up with Barclays to offer one of the top ten credit cards in terms of balance transfer expenses. The JetBlue Card happens to be one of the credit cards on this list with some of the most benefits; additionally, these benefits are meant for travel which makes this the only travel-oriented card on the list.
Before having to worry about the balance transfer APR, card holders have a 0% APR for the first year with the JetBlue Card. When this year is up, the APR converts to a new rate. These rates are applicable for both balance transfers and regular purchases, and there are three possible rates: 12.24%, 20.24%, and 25.24%. The cash advance annual percentage rate is 25.49%.
While there is no annual fee with the JetBlue credit card, there are typical transaction fees to consider. Balance transfers are vulnerable to a $5 or 3% charge on every transaction. A similar, but increased, fee is used for cash advances; the fee is either $10 or 5%. Card holders need not worry about a foreign transaction fee (one of the only cards on this list); additionally, there is no annual fee with this card. Late fees and returned payments fees vary by state, but none of them exceed $37.
This card has the best set of benefits on this list; additionally, it is the only travel benefits card here as well. Instead of cash back, card holders get bonus miles that are redeemable towards travel expenses. There is an intro offer with the JetBlue card: card holders earn 10,000 points for spending $1000 within the first three months of getting the credit card. In addition to this bonus, there are several different rates of return on purchases. Users earn three miles per dollar spent with JetBlue products. Two points per dollar are awarded for purchases at grocery stores and gas stations, and one point is awarded for every dollar spent on all other purchases.
Despite its place on this list, the JetBlue Credit Card is one of the few cards here that offers a set of credit card rewards. Additionally, it is the only travel credit card on this list. The combination of low balance transfer expenses and travel benefits makes this card a decent competitor with the pack.
NFL Extra Points Card
APR: 0% in first 6 months & 15.24%, 20.24%, or 25.24% after
Balance Transfer Fee: 0% in first 15 months, $5 or 3% after
Balance Transfer APR: 0% in first 15 months & 15.24%, 20.24%, or 25.24% after
Other Fees: NO annual, $10 or 5% advance, $37 max late
The ever popular National Football League is teamed up with the prominent Barclays in order to provide a product geared towards football fans. It just so happens that the product of this partnership has some of the lowest balance transfer rates on the market; additionally, this is one of the few cards with a rewards package.
During the first six months with the NFL Points Extra Card, there is an introductory rate for regular transactions; this APR is 0%; afterwards, this rate becomes either 15.24%, 20.24%, or 25.24%. Balance transfers follow the same stipulations except the introductory period is extended to fifteen months. Cash advance APR lacks an introductory rate, but it is set around 25.49%. Each of these rates is variable.
Holding onto this card does not require any annual fee, but there are several usual fees to keep track of. First, balance transfers cost about $5 or 3% per transaction; additionally, cash advances cost either $10 or 5%. Card holders who are abroad must remember a 3% transaction fee on foreign purchases. Late payments and returned payments all cost a maximum of $37.
There are several enticing benefits with the National Football League with this credit card. Card holders receive 10,000 bonus points for spending $500 within the first three months of opening an account (10,000 points equals $100). Two bonus points are earned for NFL product purchases while one point is awarded for all other purchases. These points are redeemable for NFL rewards or general cash back. With this card, NFL fans can get 20% off all NFL purchases.
The avid National Football League supporter may do well to invest in this card since it offers so much in terms of NFL discounts and benefits. The low balance transfer rates are a key supporting factor for the rewards package offered by the NFL and Barclays.
Wells Fargo Platinum Card
APR: 15.40% - 25.24%
Balance Transfer Fee: $5 or 3% during first 15 months, $5 or 5% after
Balance Transfer APR: 0% for first 15 months, 15.40% - 25.24% after
Other Fees: NO annual, $10 or 5% cash advance, $37 late max
While Wells Fargo's version of a Platinum Credit Card does not necessarily have "platinum" benefits, it achieves well in the realm of balance transfer fees and annual percentage rates. This credit card is meant for customers in the market for a low cost credit card who cannot qualify for a card with extensive benefits.
Starting with the reason this card is listed, there are solid introductory deals for balance transfer and regular transaction APR. For both transaction types, there is a fifteen month period where the APR is set at 0%; afterwards, this rate is increased to some value falling between 15.40% and 25.24%. There is also a range for cash advance APR which settles between 24.24% and 26.24% (though no intro period is offered).
There are a couple of fees and charges that come standard with Wells Fargo credit card products. Since this card has limited rewards, there is no annual membership fee for the Platinum Card. There are a couple of unique fee stipulations for certain transactions. There are two possible fees for a balance transfer. For balance transfers that occur within the introductory period, a fee of either $5 or 3% is charged. After this intro period, the fee is 5% for balance transfers. Cash advance fees are either $10 or 5% of the transaction amount. There are a couple of overdraft charges as well. $12.50 is charged for over-drafted balances under $50; balances over this amount are charged $20. Foreign transactions are charged 3%. Penalty fees on late and returned payments are up to $37.
It was mentioned earlier that this card lacked benefits which is true, but there are still standard perks for having a Wells Fargo Credit Card. Wells Fargo guarantees fraud protection, so customers will not be charged when their account information becomes compromised. Additionally, there is chip technology with the Platinum Card which makes it more compatible worldwide.
Overall, this card offers good deals when it comes to balance transfer expenses and what not. If one can look past the total lack of benefits and rewards, then this card can be considered an excellent deal to its card holders.
Discover it® Secured Credit Card
APR: 10.99% during first 6 months, 23.24% after
Balance Transfer Fee: 3%
Balance Transfer APR: 10.99% during first 6 months, 23.24% after
Other Fees: NO annual, $10 or 5% cash advance, $37 max late
Despite the fact this is a secured credit card, Discover offers one of the top of the line products for people with terrible credit. It technically has more benefits than some of the credit cards on this list; however, it is on this list due to its low balance transfer rates and expenses.
This secured credit card starts out with one introductory deal for balance transfers. For the first six months with this credit card, there is a 10.99% APR on balance transfers. This rate is increased to 23.24% after the introduction period; this same rate is used for regular purchases without the introductory period. The cash advance APR is set at 25.24% which is slightly higher compared to the other two rates.
There are plenty of standard fees that cannot be forgotten, but there is also a security deposit to keep in mind. Starting with this security deposit, card holders are required to submit a deposit before receiving the card. The deposit amount defines the credit limit on the card which is an important aspect of this product. There are few and simple fees with this credit card. No annual fee can be expected by card holders. A simple fee of 3% is applied to all balance transfer transactions. The cash advance fee is either $10 or 5% depending on which fee is greater. Late and returned payments amount to $37, but the first late payment does not warrant a fee. No foreign transaction fee is listed with the secured credit card from Discover.
This card is popular because it is one of the few secured credit products that provides ample rewards. There are two cash back rates on this card: 2% back at restaurants and gas stations and 1% back on all other purchases. On top of these rates, Discover matches all accrued cash back after the first year which effectively doubles this reward for the first year. It has been mentioned before, but these types of benefits are rare for a secured credit card.
At the end of the day, this credit card offers low balance transfer rates with an unprecedented set of benefits. It is one of the best secured credit cards on the market since it breaks from the norm of its category. Better benefits can be gained from other cards, but for those in a hole, this is the card to go with.
©2016
The post Best Balance Transfer Credit Cards 2016 appeared first on LendEDU.