One of the best ways to ramp up your debt reduction plan is to transfer your high interest debt to a card with a lower interest rate – or no interest rate. There are a number of credit cards offering low interest rates on balance transfers. In fact, now that the economy is recovering a bit from the recession, and credit issuers are starting to feel a little more confident, there has been an improvement in balance transfer offers.
If you are looking to boost your efforts, you can apply for one of the following credit cards with balance transfer promotions. You’ll spend some time with a 0% interest rate, ensuring that your entire payment each month goes toward reducing your principal – and not toward paying interest.
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Paying credit card interest can hinder your efforts to become debt free, and the right balance transfer credit cards can help you avoid interest altogether (at least for a little while).
Here are some of the best balance transfer credit cards:
Slate from Chase
This credit card gets top billing because it has no balance transfer fee. Most credit card issuers will charge you a fee of between 3% and 5% to transfer a balance. With Slate from Chase, though, you won’t have to worry about that fee as long as you transfer the balance within the first 30 days. The introductory period lasts 15 months, and applies to purchases as well.
One of the perks of the Slate credit card is that you don’t pay interest on certain every day purchases. There is no annual fee for this credit card.
Citi Simplicity
You end up with an 18-month introductory period with the Citi Simplicity card, but it ends up slightly below the Slate card because of the balance transfer fee. Citi Simplicity’s base interest rate of 12.99% is also higher than the 11.99% charged by Slate. However, the City Simplicity card does have a unique perk: No late fees or penalty charges. There is also no annual fee.
Chase Freedom Visa
Not only can you enjoy rewards with the Chase Freedom Visa, but you can also get cash back. There is a 0% APR balance transfer promotion going at the same time as a cash back promotion is happening. The balance transfer introductory period is 15 months, and includes purchases as well as balance transfers.
On top of that, if you spend $500 on the card within the first three months, you will get a $100 cash back bonus. You will also get 5% back (on up to $1,500 spent) in rotating categories. The rewards program also includes the ability to earn an additional 10% cash back when you shop online through Chase. There is no annual fee for the Chase Freedom Visa, and the regular APR starts at 12.99%.
Discover More
The Discover More card is another rewards credit card offering a balance transfer promotion. The balance transfer introductory period is 15 months. However, you only get a six-month 0% APR on purchases. So, you will need to pay off your purchases each month to avoid interest charges after the six-month mark. In the meantime, though, you will continue to demolish your debt with the 0% APR on the balance transfer. The regular APR starts at 10.99% for those with the best credit profiles.
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What’s great about the Discover More card is the rewards program. You receive 5% cash back with changing categories, including gas, department stores, groceries, and restaurants. You can also take advantage of extra cash back (up to 20%) when you shop through Discover.com online. There is no annual fee, and you won’t pay a fee to redeem your rewards. A great offer if you are looking to transfer a balance and take advantage of credit card rewards.
Citi Diamond Preferred
The Citi Diamond Preferred card features an 18-month 0% APR introductory period, and the regular interest rate starts at 11.99%. However, you will pay late fees, and there is a penalty rate if you are late or miss a payment. There is also a balance transfer fee associated with the Citi Diamond Preferred credit card.
For those interested VIP perks and concierge services, this can be a good card. There is no annual fee, and you have access to preferred seating at events, VIP packages, and personalized services to help you with travel bookings and more.
Related: Common Non-Reward Credit Card Perks
Citi Dividend Platinum Select Visa
This credit card has the shortest 0% APR introductory period on our list at 12 months. However, there is a cash back promotion that allows you to receive $100 when you spend $500 on the card within the first three months. The balance transfer APR includes purchases. You can get 5% cash back at a rotating cast of merchants and in various categories with this card, and 1% cash back on other purchases. The regular APR starts at 12.99%, and there is no annual fee with this credit card.
Using Balance Transfer Deals to Your Advantage
Your best option when taking advantage of balance transfer credit card deals is to plan to pay off your debt within the introductory periods. Paying off as much of your debt as possible while you have a 0% APR is the best way to save money in interest and tackle your debt.
Additionally, try to avoid adding more debt. If you use balance transfer credit cards in the hopes of taking advantage of rewards programs, or getting your bonus cash back, make sure you pay off the new charges each month. This will help you avoid interest charges, and ensure that you are on the right track when it comes to staying out of credit card debt in the future.
Don’t use a great 0% APR balance transfer promotion as an excuse to rack up even more debt. These credit cards can be great tools for debt reduction. Plan to use them wisely, and be smart about how you use the rewards programs afterward and you will find yourself in a great financial position, saving money on interest charges and earning cash back for making purchases you had already planned to make.