- 1. What is a Balance Transfer?
- 2. Common 0APR Balance Transfer Offer
- 3. Balance Transfer payment
- 4. The best Balance Transfer credit cards
- 5. Summary
1. What is a Balance Transfer?
Credit card Balance Transfer (BT) generally refers to a credit card (former) money transfer to another credit card, loan or bank account (the latter), so as to achieve the latter owed (Balance) the purpose of transfer to the former.We do so mainly for two reasons:
- Low annual interest rates of the former than the latter, after BT reduced interest
- All debts to the former, after the BT management
For banks, the BT equivalent to bank pays you in other outstanding buy and put on their products.Generally with low initial interest rates (Intro APR) to attract you to do BT.
1.1 Balance Transfer fees
BT is not transferred, BT come with two types of costs: about percent of the fees, and BT's interest (APR).Fees generally cannot be avoided, so we are 0APR BT only use of the credit card (credit card APR is generally there are three types of consumption APR,BT APR,CA APR).This time we pay 3% fees, gets an interest-free loan.Next article focuses on our 0APR BT.
1.2 Balance Transfer amount
Credit card Cash Advance and BT (CA) are similar, there are certain charges and APR.However, the CA line rarely (one-fifth total), while BT lines and lines of credit cards now available.Therefore, an amount of $10K line of credit cards may only $2k CA, $10K BT lines (some banks also have BT top for a short time).If you need cash should select a CA, and need to pay off credit cards or other loans, you should select BT.
2. Common 0APR Balance Transfer Offer
2.1 card 0APR
Open card with 0APT a lot of credit, such as common:
- Chase Freedom (opening 15 months after BT 0APR)
- AMEX Everyday Card (card 15 months after BT 0APR, you need to apply within 30 days)
To note is that some credit cards require a card apply for BT to get the 0APR within 30-60 days after, so if you have the will to do BT, it is best to apply see terms and customer service sure that.The final step of applying for a credit card has a place where you can fill in the BT information, you can immediately fill in the BT so as not to miss the opening of the BT offer.
When filling in the BT, just fill in you need to charge for credit cards and need BT amount on the line, such as the following are Chase:
Here is a transfer from that balance from another card to a Chase card, and the money is paid out of the Chase to your other card.
2.2 directional 0APR BT credit card Offer
Many people in the use of credit cards after a period of time, will receive from the credit card company sent some blank check, I don't really know what these checks are used for.Look closely know, these checks can be used for BT.As the Check, there will be a bank offer 0APR BT.Also very easy to use, just fill in the amount you need to BT, the Check directly deposited into your checking account on the line.Of course, it is best to see what BT charges, generally around 2%-3%.
After you receive this offer, sign in to your credit card account, 0APR can also be found offer.So online can complete, here is my gift of the CITI credit card 0 APR offer
2.3 when to use these offer
If there is a 0APR offer, pay a fee to BT 3% cost-effective waste?I think if you need small loans did not want to go the Bank for ways to take advantage of these 0APR offer is good.If you 0APR the offer lasts for 18 months, then count the 3% fee, amounting to an average annual rate of only 2%, which is lower than many bank loans.Of course, there is an extreme case, your annual interest rates for investment of funds obtained through BT things greater than 5%, then play with BT is also good.
3. Balance Transfer payment
See above explanation, we surely would 0APR by BT to get a percent fee on credit card interest-free loan would be nice.However, if you do 0APR BT, be sure to note the following points:
- Have to pay the minimum each month due
- The BT credit card is best not to have a new consumer
- In the BT 0APR before the end of a bill pay all
3.1 the monthly pay the minimum due
This is the most important, because if you do not have to pay off the Bank gives you the minimum amount (minimum due), then the Bank can cancel you 0APR qualifications.But it will also boost your BT APR.If you still can't afford the BT money, so 25%-30% APR really equivalent to the loan sharks.So, anyway, biting his teeth to pay minimum due.Generally the minimum due $25-$35, so if not forget believe will still pay.
3.2 new consumption after the Balance Transfer payments
My advice is, don't spend your BT credit card, direct cut cards, obediently pay the minimum due each month.If you have no interest for the cause, you can skip the following explanation.
First of all, is no Grace Period for BT's new consumer (because your statement balance during the BT has been >0), new from post consumer interest at the start of the day, interest rates use the Purchase APR.Therefore, if you have a 0APR BT offer but did not purchase APR of 0, it would have been terrible.Secondly, the new consumer's APR is not 0, the repayment is also very troubling.You can't just minimum due, quickly consumption of this new money also.If you didn't pay off immediately, wait until after the Bills, you are required: minimum full + new due+ new consumer spending, interest rates.To ensure your new spending is completely paid off, does not continue to compound interest.The following reasons:
- Most banks ' minimum due payments were acting on the lowest APR, in this case your BT lowest APR (0), so you just balance part of the BT.So only minimum, your new spending has not been off roll would continue to follow the Purchase APR interest rate.Higher than the minimum repayment will be acting on your highest APR, your purchase APR is the highest APR (>0), so that part of your repayment to cover new spending in full and new consumer-interest income arising from it.
Anyway remember: better not to use BT after the card in case of consumption, better get paid full + minimum+ new consumer interest.
3.3 in the BT 0APR end pay off bills
This 0APR offer deadline is closing time and Bill are not the same.So, if you 0APR after the closing date, has not yet repaid all outstanding balance, the interest starts as soon as the (only when billing will display to you).This interest was also very scary, the amount owed is your remaining balance, and is owed from your BT start is due on the first day.If you have $1000 you have paid, and BT's normal APR is 20%, you have to pay $400.So
- Be sure to complete the Bill before the deadline on 0APR offer to pay off
4. The best Balance Transfer credit cards
Play the best Balance Transfer credit cards Chase Slate, of course, its main features are as follows:
- Open card within 60 days of using BT, no service charge
- Opening 15 months BT 0APR
- Opening Purchase is within 15 months 0APR
0 fees +0APR truly the interest-free loan for 15 months in vain!
If you want a longer interest-free period, Citi Simplicity cards are good, its main features are as follows:
- BT 0APR opening 21 months (four months)
- BT fee 3%
Compared to Chase Slate, 3% fees, but for the 6-month interest-free period, or good
Card credit card, quite apart from generous reward, other than the usual cash back, get free cash flow through the Balance Transfer is a way of playing cards.Of course, should be taken to avoid high fees, paying it.