If you’re struggling with credit card debt, a credit card with no balance transfer fee can provide you with a helpful reprieve. These cards can help you pay down debt faster and save on interest charges without worrying about the cost of transferring a hefty credit card balance.
A balance transfer credit card lets you move a balance from an existing, high-interest account to a new credit card with a low — or even a 0% introductory interest rate — for a set period of time, usually between 12 and 20 months. During the low-interest period, you can pay down the principal without getting buried under new interest.
What’s the catch? Most balance transfer cards charge a transfer fee — typically between 3% and 5% — which can be a big step in the wrong direction if you’re trying to settle your debt. However, some cards don’t charge a transfer fee. The trade-off? A shorter low-interest introductory period. While most balance transfer cards offer up to 20 months of low or no interest, no transfer fee cards usually just offer 12 months. But if you’re able to pay off your debt during that first year, you can save yourself around 3% to 4% (depending on the balance transfer fee other cards charge) of the amount you owe.
If a credit card with no balance transfer fee makes sense for you, we’ve highlighted our top picks below, followed by two cards we also think are worth considering, even though they do feature a balance transfer fee…Read more>>