If you are looking into a way to pay off all your debt for good your best option could be to check out one of the best balance transfer credit cards to consider for 2016. This New Year you can get rid of debt by using a balance transfer card. So many make our New Year’s resolution to get out of debt and then never do, or get out of it just to plunge right back in the bucket.
Balance Transfer Credit Cards Scenario
- If you have say $5000 owing on a card that has an APR of 19% and make monthly payments of $150 on the card
- Transfer your balance to a card with an APR of 0% on balance transfers for a year with a 19% APR after the intro period and no annual fee and a 3% balance transfer fee
- With the above you would end up paying off your card over 39 months and would save interest payments of $1,278.84
Isn’t that a lot of savings? And just with a simple balance transfer. This is just one scenario and one example of how you can save with some of the balance transfer credit cards to consider for 2016. Imagine if you find a card that allows you a 0% for a longer period and trust me you can with some up to 21 months.
Balance Transfer Credit Cards to Consider for 2016 and Their Flaws
Yes a balance transfer card can be your solution but they have their downsides as well. Even with a 0% standard APR on balance transfer bear in mind that this often has a limit. After the introductory period the percentage will go up and in some cases it can be very high. If you don’t do the transfer right after you get the card then you may lose the benefit of the introductory APR. If you are late with your payment over 60 days then you introductory APR can be revoked as well. So you really need to know the rules and ensure you play by them. Find below the Best Balance Transfer Credit Cards to Consider for 2016.
- Chase’s Slate Card – This credit card comes with a 15 month initial period of no interest on your balance transfer. If you transfer your balance within the first 60 days that you receive your card then you won’t pay a transfer fee either. Typically balance transfer fees are around 3% of the balance being transferred. This card features no annual fee with APR’s after the introductory period at a minimum of 12.99%. If you can transfer your balance quickly and pay it off within 15 months this is the best of the balance transfer credit cards to consider for 2016.
- QuicksilverOne Rewards from Capital One Card – This credit card comes with a 9 month introductory period and no transfer fee ever. It does however have an annual fee of $39. This is ideal for a balance that you can pay off within a 9 month period to get the best deal.
- Diamond Preferred from Citi Card – This card has an introductory period of 21 months – the longest one on the market currently. It has a transfer fee of $5 or 3% of your balance, whichever is greater. With no annual fee this is the best of the balance transfer credit cards to Consider for 2016 if you have a large balance or can only make small payments. This card gives you almost two years to pay off your balance and if you are still carrying a balance after the introductory period the APR you are charged could be as small as 11.9%.
- Discover it – this card has an introductory period of 12 months and a balance transfer fee of 3%. There is however no annual fee and the APR after the first 12 months offer the lowest possible at 10.99%. Double this card with the offer from Discover to double your cash back earned on the card in your first year and you have a sweet deal!
There is no one size fits all when it comes to choosing a balance transfer credit card. Of course some will offer better benefits than others but it is really all based on your current situation. Your ability to pay, the amount of your balance and how quickly you can pay it off are all large determining factors that will help you figure out which balance transfer card is best for you. Then there is always the fine print.
Before making your decision on which of the balance transfer credit cards to consider for 2016 you will be choosing, you should sit down and crunch the numbers. You don’t have to be an accountant or work in a bank to figure out with a calculator which card will offer you the best deal. It just will take a little time. A little time spent prior to choosing your balance transfer card could make a major difference in how much you spend or how much you save so take the time and choose wisely.