Criminal Defense Lawyers

What Is a Balance Transfer Credit Card?

What Is a Balance Transfer Credit Card?

A balance transfer credit card allows you to move high-interest debt from other credit cards to a new card with a lower interest rate – usually 0% for an introductory period. This can save you money on interest charges and help you pay off debt faster.

How Balance Transfer Cards Work

Balance transfer cards work by giving you a 0% APR promotional period – typically 12-21 months – on balances transferred from other credit cards. Some cards also offer a 0% intro APR on purchases for a set time.To transfer a balance, you’ll need to apply for a new balance transfer card and provide details on the debts you want to move over. The card issuer will pay off those balances, and you’ll owe them the total amount instead – but at a lower interest rate during the intro period.After the 0% APR period ends, any remaining balance will be charged interest at the standard purchase APR rate. It’s important to have a plan to pay off or transfer any remaining balance before that happens.

Benefits of Balance Transfers

The biggest benefit is saving money on interest charges while paying down debt faster. With no interest accruing for 12-21 months, all your payments go directly towards the principal balance.For example, if you transfer $5,000 from a card with 18% APR to one with 0% APR for 15 months, you could save over $700 in interest by paying it off during the intro period.Balance transfers can also simplify debt repayment by consolidating multiple balances onto one card. This makes tracking payments and due dates easier.Some balance transfer cards also offer rewards like cash back or travel points on transferred balances and new purchases.

Drawbacks to Consider

While balance transfers offer benefits, there are some potential downsides:

• Balance transfer fees: Most cards charge a 3-5% fee to transfer a balance, which gets added to the total you owe. This fee can offset some interest savings.
• Deferred interest: Some cards use “deferred interest” where if you don’t pay off the entire transfer amount during the intro period, you’re charged interest retroactively from the transfer date. Always read the terms carefully.
• Only for existing debt: The 0% APR is only for balances transferred, not new purchases. New purchases accrue interest at the standard rate.
• Credit score impact: Opening a new credit card can cause a small, temporary drop in your credit score due to the hard inquiry and new account. But paying off debt responsibly can improve your score long-term.
• Upfront costs: Some balance transfer cards have annual fees, which add to the overall cost.

How to Get the Most From a Balance Transfer

To maximize the benefits of a balance transfer card:

• Have a plan to pay off the full transferred balance before the 0% period ends to avoid interest charges.
• Don’t use the card for new purchases if possible, as those accrue interest right away.
• Consider cards with longer 0% intro periods and no annual fees to minimize costs.
• Make sure you get a high enough credit limit to transfer your total debt balance.
• Avoid transferring balances between cards from the same issuer, as they often don’t allow this.
• Check your credit scores first, as you’ll need good to excellent credit to qualify for most balance transfer offers.

Top Balance Transfer Card Offers

Here are some of the top balance transfer credit cards on the market right now:

Citi Simplicity® Card

• 0% intro APR for 21 months on balance transfers
• 0% intro APR for 12 months on purchases
• No late fees, no penalty APR
• No annual fee
• 5% balance transfer fee (minimum $5)

Wells Fargo Active Cash® Card

• 0% intro APR for 15 months on qualifying balance transfers
• Unlimited 2% cash back on all purchases
• No annual fee
• 3% intro balance transfer fee for 120 days, then up to 5%

U.S. Bank Visa® Platinum Card

• 0% intro APR for 20 billing cycles on balance transfers
• No annual fee
• 3% balance transfer fee

Chase Slate Edge℠

• 0% intro APR for 18 months on purchases and balance transfers
• No annual fee
• Balance transfer fee of 3% when you transfer during first 60 days ($5 minimum)

BankAmericard® Credit Card

• 0% intro APR for 18 billing cycles on balance transfers made in first 60 days
• No annual fee
• 3% balance transfer fee (minimum $10)

Be sure to compare balance transfer fees, intro APR periods, regular APRs after the intro period ends, credit limits, and other features to find the right card for your needs.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Balance Transfer Card FAQs

How long does a balance transfer take?

It usually takes 10-14 days for a balance transfer to be processed and post to your new credit card account after you’re approved. The amount you transfer will show as the new balance.

Can I transfer balances between two cards from the same issuer?

Most card issuers don’t allow you to transfer balances between two of their own credit card products. The balance transfer has to be from a different issuer’s card.

Do balance transfers hurt your credit score?

A balance transfer itself doesn’t impact your credit scores. But applying for a new credit card results in a hard inquiry, which can cause a small, temporary score drop. Your scores may also go down slightly due to the new account being added.

What if I can’t pay off my balance transfer before the 0% APR period ends?

If you still have a remaining balance when the intro 0% APR expires, you’ll start accruing interest charges at the standard purchase APR, which can be quite high (often 16%+). It’s best to pay it off during the intro period or do another balance transfer.

Can I transfer other types of debt to a balance transfer card?

No, balance transfer cards are only for transferring balances from other credit cards. You can’t move debt from things like loans, lines of credit, mortgages, etc.

Balance Transfer Cards: The Bottom Line

A balance transfer credit card can be an effective tool for paying down high-interest credit card debt faster and more affordably. But it requires discipline to pay off the balance aggressively before the 0% APR period ends.By understanding how balance transfers work, the potential pitfalls to avoid, and comparing your best card options – you can leverage a balance transfer to your advantage and save money while eliminating debt.