Compare 0% Balance Transfer Credit Cards
Posted September 9th, 2009 and last modified March 22nd, 2011Trying to compare 0% balance transfer cards can be confusing unless you get all our facts straight.
Cards issued during the past few years gave us many advantages. One was to gain money by moving the funds to a high interest online savings account. The balance transfer comparison in this article will introduce you to the features commonly offered by these type of cards.
Citibank Clear Platinum
Featuring a low interest rate on purchases and balance transfers, the Citibank Clear Platinum is an excellent choice for those looking for the privileges of a Platinum credit card with a competitive annual fee. Includes complimentary international travel insurance.
- $99 annual fee
- 11.99% p.a. on purchases
- 2.9% p.a. for 12 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- 55 days interest free
- Minimum Income Requirement of $35,000 p.a.
When doing a balance transfer comparison, be mindful of high interest fees after the end of the honeymoon period.
The rattling aspect for many first-time balance transfer card users is the fact that interest rates are going to be high after the 0% promotion is over. These days it is common to be offered 0% interest anything from a six month, 12 months or life term. Cards with longer terms usually attract other costs and before rushing a decision you should keep on reading.
Annual Fee:
When we compare 0% balance transfer cards, the first and foremost thing to examine is to check if there is an annual charge for the card. There is no necessity to punish the customer with an annual fee. Therefore it would be wise to select a card without an annual fee. While we compare 0% balance transfer cards among financial institutions, we find that Discover and Citibank don’t charge an annual fee.
Promotional Period:
Perhaps the most important factor to consider when reviewing 0% balance transfer cards is the length of time given for the introductory period. Usually the offer period varies from six to twelve months. It is advantageous to choose a longer time frame since it gives the needed time to settle your debt. On a balance transfer comparison, even a six months period has value rather than paying an interest rate of 18.99% right off the bat.
Balance Transfer Fee:
When comparing 0% balance transfer cards, beware that no balance transfer comes into being without a balance transfer fee. In the good old days there were no charges applicable for balance transfers but these days you are expected to pay a fee.
The typical balance transfer fee is 3%. There are chances to having a limit on the balance transfer fee, which tends to be beneficial for larger debts. But this advantage also comes with a ‘penalty’ – the credit limit is also restricted in accordance with the fee. As an example let us consider a 3% fee with $90 limit applicable, the credit limit in this case could be restricted to just $3000.
Post-Transfer Period Interest Rate:
Another imperative thing to pay attention to when you compare 0% balance transfer cards is to evaluate the possible situation where the debt is not settled within the offer period. If the interest rate matches with the current rate or if it’s lower, we can transfer the balance. In the event that it is higher, then one must find a solution to lessen the risks. The balance transfer fee is also applicable in this scenario.
The above rules will stand in good stead when we compare 0% balance transfer cards in the present credit scenario. The current situation is not favourable for someone who is failing to settle debts. Nevertheless, it certainly helps to stay abreast of the market and keeping up-to-date with current terms and conditions.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
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0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
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