The Real Deal on 0% Balance Transfers

So we know that you've been bombarded with hundreds of offers to get you to transfer balances to new credit cards. Often times these credit card companies offer enticing deals with 0% APR for 12 months, 1000 bonus points, a free gift card, yada yada yada... So, what's the catch?

What these offers usually fail to explain is the high "variable rate" interest charges that kick in after the intro period. They also hide this fact: If you use that card to purchase anything then your monthly payments will only pay off the low interest rate while the higher purchase APR (usually 15-30%) racks up massive finance charges against you! That doesn't sound very fair now, does it?

You Pay 3% Up Front

Furthermore, you have to pay an up front balance transfer fee starting at 3% in almost every instance. In the past the 3% balance transfer fee was capped to a maximum, but now the rules have changed...

No Caps on Transfer Fees!

Some companies such as American Express, Advanta Bank, and Discover cap balance transfer at $75 to $99, but others like HBSC, Capital One, and Citibank have none! If you have a balance exceeding $3300 then the sky is the limit for what they can charge you.

So... Avoid Trouble!

You will also run into problems if you don't get your balance paid off by the end of the introductory 0% balance transfer offer when the variable rate kicks in. Sound familiar? MORTGAGE CRISIS ANYONE?

We strongly suggest going with the 4.99% fixed APR that American Express offers or the 0% for 15 months with a 7.99% fixed APR afterwards from Advanta Bank. Otherwise the Discover Motiva Card may be your best option since the card will refund you 1 month of finance charges for every 6 month paid on time. We suggest checking out the following credit cards for a chance to get your debt consolidated and paid off at a reasonable interest rate!

American Express Blue gives you a 0% introductory APR on "purchases" for as long as 15 months and a 4.99% "fixed APR" on balance transfers for the life of the balance. The transfer fee is 3% and caps at $99.

There is no annual fee on the card itself, but there is a $40 annual fee if you want to join the rewards program (1 point for every dollar spent). This little detail is buried in the fine print, so only check the box on the application if the fee is worth it to you.

Realize that other cards will jack up your rate to a variable interest rate of about 10% + prime rate after the 12 month intro period (starting around 15%!!!). You could keep rolling over balances every 12 months, but variable rates will turn your world upside down if you get in a jam. In our opinion, a 4.99% fixed rate beats any of the introductory 0% balance transfer offers out there. It also offers a legitimate chance to free up some cash and get a tight financial situation under control. Apply Now!

The Dicover Motiva Card doesn't have a fixed balance transfer rate after the intro period, but it does have some unique features. Right now they will do a balance transfer for 12 months at 3.9% APR with a 3% transfer fee capped at $75. It's not 0%, but the fact that they will refund you 1 month of finance charges for every 6 payments made on time is a very good deal (as far as credit cards go).

This bonus comes in addition to an incremental rebate of up to 1% cash back. Specifically, you get 0.25% cash back on your first $1,500 in annual purchases, 0.50% back on the next $1,500, and 1% on anything after that.

We also want you to know that we are aware of the plentiful 0% balance transfer offers out there, but the rates and terms after the intro period are generally terrible. The Discover Motiva Card offers some continuing benefits and is a better choice for the long run. Apply Now!

We've just added the Advanta Business Platinum Rewards Mastercard which is quite frankly... EXCELLENT! The stipulation with this one is that you technically need to have a business or you need to fib and come up with a fake number for your annual business spending. We're just here to provide you with some honest information about a good balance transfer offer so you will have to make the decision to apply on your own.

The Advanta Bank business credit card has the longest 0% APR balance transfer rate in the industry lasting for 15 months in addition to a "fixed" APR of 7.99% after that! The card also boasts a 5% cash rebate which is nice, but the 5% is fluffed up a bit when you read the fine print.

The 5% applies to the first $1,200 in annual gas, computer/supply, office supply, online advertising services, and utility/telecommunication expenses. The rebate on everything else is just mediocre and ranges from 0.25%-0.75% on your first $15K in purchases (1% after 15K). On the bright side, this card has an awsome balance transfer rate, no annual fee, a decent rebate, and the transfer fee is capped at $90. We absolutely love the 0% for 15 months followed by a fixed rate! Need we say more? Apply Now!