Tech

Best Credit Cards With No Balance Transfer Fees for May 2022

Shift your credit card debt from an account with a high interest rate to a new card with a long one 0% APR period can save you a lot of money in each monthly billing period. But if you plan to transfer a large amount of debt, the first thing to consider is the fees for transferring the balance.

Some credit cards charge fees – usually between 3% and 5% of your transferred amount balance transfers. These fees can temporarily increase your balance and negate some of the benefits of a lower interest rate.

Lucky for you, other credit cards waive the transfer fees entirely, although they may compensate for that free transfer with a shorter introductory APR period.

If you want to transfer your credit card balance to a new account and skip the transfer fee, check out our top partner offers to find a card that’s best for you. We will update this list regularly as credit card offers and conditions change.

Continue reading: Best Secured Credit Cards

Longest introductory APR with a $0 introductory transfer fee

Introductory offerN / A

APR8.49% to 19.99% (variable)

Recommended credit Excellent/good credit

bonus ratesN / A

Annual fee$0

Introductory Purchase APR0% introductory APR for the first 15 months your account is open.

Intro balance transfer APR0% introductory APR for the first 15 months your account is open.

Balance Transfer Fee Either $10 or 3% of the amount of each balance transfer, whichever is greater.

Credit Transfer APR8.49% to 19.99% (variable)

dunning fee Up to $37

Foreign Transaction Fees 3% of each transaction in US dollars.

penalty APR none

Our opinion

The Union Bank® Platinum™ Visa® Credit Card offers an introductory APR of 0% on purchases and fund transfers for 15 months, with $0 in fund transfer fees if you make your first fund transfer within the first 60 days of account opening (3% of each transfer thereafter). with a minimum of $10). At the end of the promotional APR period, you will be subject to a variable APR ranging from 8.49% to 19.99% – the low end of this range is very competitive compared to most transfer credit cards. There’s also no annual fee, making this a safe card to transfer your funds to at no extra cost if you’re diligent.

A mid-range introductory APR offering

Introductory offerN / A

APR8.15% – 18.00% Variable APR

Recommended credit N / A

bonus ratesN / A

Annual fee$0

Introductory Purchase APR0% introductory APR on purchases for 12 months from account opening

Intro balance transfer APR0% introductory APR for 12 months from account opening on BTs

Balance Transfer Fee none

Credit Transfer APR8.15% – 18.00% Variable APR

Foreign Transaction Fees none

Our opinion

Wings Financial Credit Union is based in Minnesota, but you can become a member by making a $5 donation to the Wings Financial Foundation. After that, you can apply for the Wings Visa Platinum credit card*, which charges no annual or balance transfer fees and offers an introductory 0% APR on balance transfers and purchases for 12 months (8.15% to 18.00% variable APR thereafter).

Introductory offerN / A

APR6.99% to 18.00% (variable) upon account opening, depending on your credit rating

Recommended credit N / A

bonus ratesN / A

Annual feenone

Introductory Purchase APRN / A

Intro balance transfer APRIntroductory balance transfer of 0.00% APR for 12 billing cycles

Balance Transfer Fee none

Credit Transfer APR6.99% to 18.00% (variable) upon account opening, depending on your credit rating

Foreign Transaction Fees none

Our opinion

Based in San Jose, California, First Tech Federal Credit Union initially catered to employees of technology companies in the Pacific Northwest. Today you can become a member if you work for one of their affiliates or become a member of the Computer History Museum ($15 for an annual membership) or the Financial Fitness Association ($8 for an annual membership).

The First Tech Platinum Mastercard* credit card also offers 12 billing cycles with an introductory 0% APR on balance transfers (6.99% to 18.00% variable APR thereafter) with no credit card balance transfer fees.

Low introductory APR with no transfer fee

Introductory offer$100 credit after spending $500 on qualifying purchases in the first 3 months of account opening

APR11.24% – 21.24% (variable)

Recommended credit Excellent credit

bonus rates

  • 1% unlimited cashback on all qualifying purchases

Annual fee$0

Introductory Purchase APRN / A

Intro balance transfer APR3.25% variable introductory APR for the first 36 months on all transfers within 60 days of account opening.

Credit Transfer APR11.24% – 21.24% (variable)

  • 1% unlimited cashback on all qualifying purchases

Our opinion

The SunTrust Prime Rewards credit card* does not charge a balance transfer fee per se ($0 for balance transfers in the first 60 days, then 3% or a minimum of $10). Rather, it comes with three years of a relatively low APR — 3.25% variable — that serves as a lump sum transfer fee paid over a year. It is worth noting that the effective interest rate will actually be less than 3.25% variable if you are able to repay your balance.

bottom line: If you need more time to pay off your debt, the SunTrust Mastercard Prime Rewards offers a balanced combination of low interest rate and long payback period.

frequently asked Questions

How do credit cards with balance transfer work?

When used correctly, transfer credit cards act as a debt financing tool. They can help you pay off existing high-interest credit card debt faster and cheaper.

When you transfer a balance, you move debt from one credit card to another. The best balance transfer cards offer low or no interest for a set introductory period, so you can pay off your debt without worrying about high interest rates. This introductory period of the APR typically lasts between 12 and 21 months, giving you ample time to pay off your balance before the interest rate increases.

While some credit cards offer no-fee transfers, most prepaid transfer cards will charge you between 3% and 5% of the funds transferred. As a rule, the longer the introductory phase with 0% APR, the higher the fee and vice versa. Thus, cards with no transfer fee have shorter APR induction periods and cards with transfer fees have longer APR induction periods.

Where can I find credit cards without a transfer fee?

We think that Wings Visa Platinum and First Tech Platinum cards are two of the best credit cards with no transaction fees. While both offer introductory APR offers, you’ll need to pay anywhere from $5 to $15 to become a member. However, this fee is relatively small compared to typical balance transfer rates. For comparison, let’s say you transfer $5,000 in credit card debt – a card with a 3% fee would charge you $150 to do so, while the Wings Visa Platinum and First Tech Platinum cards only charge a membership fee of less than would charge $20.

However, if you’re already a member of a credit union, it may be worth asking if they offer a balance transfer card with an introductory 0% APR period and no balance transfer fee.

What are the advantages of a credit card with no transfer fee?

A no transfer fee credit card allows you to transfer funds from one account to another without having to pay an upfront transfer fee, which is generally between 3% and 5%. The trade-off is a shorter introductory APR period for balance transfers.

A credit card with no transfer fees and a 0% APR offers a way to pay off high-yield credit card debt without paying a penny in interest or fees, but only if you can pay it off within a year. If you need more time, it might be better to consider a card with a transfer fee that has a longer period of no interest or a low introductory APR.

How do I decide if a no transfer fee credit card is right for me?

The first step is to understand what the monthly payment is that you can afford each month. Then calculate how much interest and fees you’re paying for the balance transfer using two or three different credit cards.

In general, if you can pay off your debt in about 12 to 15 months, it’s worth the 3% you save with a credit card with no transaction fees. If you need 17-18 months or more, a card like the US Bank Visa® Platinum Card can save you more money on interest payments, despite the 3% transfer fee (minimum $5). If it takes you more than two years to pay off your balance, the SunTrust Mastercard Prime Rewards may be your best option. Also, don’t discount personal loans — if you owe a significant amount and will take a few years to pay off your debt, you might be able to get a loan private loan for a lower interest rate than the introductory 3.25% variable APR of the SunTrust Mastercard Prime on balance transfers (11.24% to 21.24% variable APR thereafter).

Our methodology

CNET checks credit cards by comparing them extensively using set criteria developed for each major category, including Cash Back, Welcome Bonus, Travel Rewards and Balance Transfer. We consider the typical spending behavior of a range of consumer profiles – understanding that everyone’s financial situation is different – and the intended function of a card.

For example, with cash-back credit cards, the annual fee, the “welcome bonus” and the cash-back rate (or rates, if they differ depending on the spending category) are decisive. For award and mileage cards, we calculate and weight the net monetary value of each card’s benefits. And for credit cards with balance transfer, we analyze specs like the length of the 0% APR introductory period and the balance transfer fee, while considering secondary factors like the default APR and the length of time you have to make a balance transfer after your account open.

More credit card recommendations

*All information about the Wings Visa Platinum credit card, First Tech Platinum Mastercard and SunTrust Prime Rewards credit card was independently collected by CNET and has not been verified by the issuer.

The editorial content on this site is based solely on the objective, independent assessments of our authors and is not influenced by advertising or partnerships. It was not provided or commissioned by any third party. However, we may receive compensation if you click on links to products or services offered by our partners.

Best Credit Cards With No Balance Transfer Fees for May 2022 Source link Best Credit Cards With No Balance Transfer Fees for May 2022

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