One of the most disheartening things about debt is the way that your multiple loans and seeming endless payments and high interest rates cause you such stress. If you were lucky enough to be able to finance multiple loans, it can really put you in an unhappy state when you have to make hefty payments that mainly amount to a lot of interest. It never feels good to know that you’re more so paying for the favor to borrow than paying off your actual balance. You need to find the best balance transfer cards that are available for you to utilize.
If you’re in a serious everyday struggle to handle it all, debt consolidation might be a useful option for your situation. You end up taking on one single debt account with an interest rate that’s usually lower than you’ve been paying. Debt consolidation loans from peer-to-peer lenders are the best bet for most people, but if you’re someone that has an exceptionally high credit score, you might be lucky enough to acquire a balance transfer card. Finding the right balance transfer card will make your repayment process that much easier while helping you save on interest costs along the way. Of course, not all balance transfer cards are the same and there are a lot of fine lines that you should look into studying before you commit to the best balance transfer cards there are out there.
How They Work
The best balance transfer cards exist so that one can use a new line of credit to pay off a smaller existing loan. The best balance transfer cards usually have very low interest rates and some other cards have introductory rates of 0%. Once you transfer your balance over, most of your payments will go to paying down your principal balance. If you’ve got two credit cards that both have different balances, you’ll have different minimum payments and interest rates to pay on each. Having that 0% introductory interest rate could do a lot for maximizing your payments.
You definitely have to be careful when using a balance transfer card because you can still rack up debt on those cards you just paid off. It’s also important to note that introductory interest rates don’t last forever: they have an expiration date! You have to go into the situation with a plan to pay off the card before the introductory rate expires and you can’t spend with the new card. There’s also a fairly common balance transfer fee that most cards will charge you. It’s usually 3 to 5% of the total balance being transferred. It may sound like a small fee, but it can certainly add up more quickly than you think. Find out more about the three best balance transfer cards there are for you to apply for.
Three Major Balance Transfer Cards
- The Chase Slate card targets people that are searching for further insight into their spending habits. The Chase Slate card is one of the best balance transfer cards there is because the introductory 0% interest rate lasts for 15 months. They also don’t charge a balance transfer fee. For debt consolidation repayment that’s fairly stress-free, the Chase Slate card is a great option for most people.
- The CITI Simplicity cards does all it can to work with its clients by offering up to 18 months’ time to pay off your card debts if just can’t manage it all with the regular 15 months’ time. CITI Simplicity is one of the best balance transfer cards because you won’t be charged a late fee or penalty interest rate if ever you miss a payment. That means that you won’t send yourself spiraling into further financial distress just because you missed a payment. CITI Simplicity also offers 18 months of 0% interest on purchases, but you really shouldn’t purchase anything at all with this card unless you absolutely have to. This card does come with a 3% balance transfer fee, so if you owe quite a bit in debt, that fee could be more than you’re willing to pay.
- Lake Michigan Credit Union’s Prime Platinum card is great for folks that know they certainly can’t pay off their debts in 15 or 18 months. The Prime Platinum is one of the best balance transfer cards because even though they charge an ongoing 6.25% interest rate, they don’t charge a balance transfer fee and that interest rate is lower than the rate of most credit card purchases today.
Before you decide on one particular card, you should identify what your personal financial needs are. You’ll want to research thoroughly which route to take and you might even have to employ a few different options to work with your unique situation. You want to make sure you’re getting the best deal possible and you’re undertaking something you can afford!