Here's How You Can Save Thousands of Dollars through Balance Transfer

If you’re carrying a large balance on your credit card, you are probably racking up thousands of dollars in interest fees every year. Many people carry credit cards that have purchase APRs varying from 13% to 25%. This means that unless they pay their bills in full every month, they have to shell out a lot of money as interest.

Let’s assume that you have a card which has a balance of $15,000 and an APR of 15%. Even if you manage to pay off the balance in full in twelve months by paying the same amount every month, you will still accrue about $1,250 in interest charges. Large balances, coupled with high rates, trap the card holder in a vicious cycle. For people burdened by steep interest charges, paying off the principal seems to be an insurmountable task.

Luckily, there is a way out. Through balance transfer, you can shift from a high interest credit card to one with low or no intro APR. Some of the best balance transfer cards available right now are Chase Slate, Citi Simplicity Card and “Discover it.”

Though most cards charge a certain percentage of the total amount as balance transfer fees, it is still possible to save money. In the example cited above, let’s say you have to pay 3% to transfer to a card with 12-month 0% intro APR. This will lead to balance transfer charges of $450, and savings of… $800! So what are you waiting for? From the list shown below, pick a card that suits you best and save thousands of dollars through balance transfer!

Chase Slate: The Chase Slate credit card has no balance fees for the first 60 days, 15-month 0% APR on both balance transfer and purchases and no annual fee. There’s a fairly low on-going APR after the first fifteen months are up, however the card has no penalty APR – meaning your interest rate won’t increase if your payment is delayed. It is available to those with good credit history, so anyone with a credit score above 660 is likely to qualify for this card.

Citi Simplicity: This card offers 21-month 0% intro APR on balance transfers and purchases, giving you plenty of time to pay down your balances. There is a 3% balance transfer fee, but on the upside, no annual fee, no late fees and no penalty rate.

Discover it – Balance Transfer: The Discover it – Balance Transfer Card has an 18-month 0% intro APR on balance transfers, 6-month 0% APR on purchases, and no annual fee. There is a 3% fee on balance transfers, but you also stand to earn 5% back on up to $1,500 in purchases in categories that rotate quarterly, and 1% cash back on everything else. This should conveniently offset the balance transfer fees.

Citi Double Cash Card: This is a great cash back rewards card with a 15-month 0% APR on purchases and balance transfers and no annual fee. Although there is a 3% balance transfer fee, you effectively earn 2% cash back on ALL purchases. The first 1% cash back is earned when you purchase the item, and the second 1% when you pay for that purchase. However, you must also pay your minimum balance due each month to earn the second 1% cash back.

At Fund&Grow, we have a dedicated and experienced team that can help you achieve your financing needs at the lowest possible rates. Our team has established relationships with industry leading organizations. This enables us to connect you with the latest low interest money lending programs and meet all your credit requirements with ease. As always, we remain grateful for the opportunity to serve you with our knowledge and expertise.