Are There Any Cards Without The 3 Balance Transfer Fee

0 Balance Transfer Cards May Not Have Zero Percent Risk

A zero balance transfer may be a solution to most people who are deep into debt, but before making any transition, let’s go through the things that you need to know before making the transfer.

The catchy line, “0 percent introductory rate” may make your eyes shine, but what is not prominently advertised is the fee that you’ll be charged with before transferring the balance. The fee may range from 3% to 5% of your balance.

In order for you to properly assess the value of a transfer offer, you need to weigh the fee against any potential savings on interest charges. Take note that you need to be realistic on how fast you are going to pay off your balance.

A 0 percent introductory rate on balance transfers is standard. The importance is looking at the terms you face once that period ends. Check the interest rate that takes effect after the introductory period. Be aware that the interest rate on balance transfers doesn’t always apply to new purchases during the introductory period.

You might also want to consider the impact a balance transfer may have on your credit score. If you have strong credit, the impact of a balance transfer may be usually minimal over time. If you want to apply for bigger loans in the near future, keep in mind that applying for a new card dings your credit score in the short term because it suggests that you’re in need of money.

3 Reasons to Avoid the Discover Open Road Card | PlasticIQ.com

The Discover Open Road card reminds us of the cool Talking Heads song, “Road To Nowhere”.

If you’re looking for a Discover cash back card, see our review of the Discover Escape card . Using the PlasticIQ Standard Spending Profile, the Escape credit card earned an average of 2.1% cash back over a 3-year period, while the Discover Open Road card earned only 1.3% cash back over the same time-frame. If you’re looking for a gas or restaurant card, see our recommendations at the end of this article.

Key Rewards, Fees and Benefits of the Discover Open Road Card

This table highlights some of the key aspects of Discover Open Road’s rewards and fees structure.

Earn 2% cash back on your first $250 in combined gas and restaurant purchases each billing period. Combined gas & restaurant purchases in excess of $250 in a given billing period earn cash back at the same rate as other purchases. Note that the first $250 in gas & restaurant purchases each period don’t count towards the $3K annual spending tier Earning Rewards With The Discover Open Road Credit Card

The Discover Open Road card is another prestigious winner of our Sneaky Snake award, and right below we’ll call out some of the Discover Open Road’s potholes:

Firstly, on your initial $3,000 of spend each year with the Open Road credit card, you only earn 0.25% cash back (excluding gas & restaurant purchases). Yes, that’s pretty bad. It’s not until you cross the $3K threshold that you begin to earn a rather ho-hum 1% cashback. Secondly, while gas and restaurant purchases pay out at 2% cash back, you are capped at $250 of combined spend in these two categories each month. So that’s a maximum of $5 per month in extra rewards in these categories. You won’t last long on the open road with five bucks these days. Thirdly, the first $250 in gas and restaurant purchases each month, along with any warehouse club purchases, don’t count towards the $3,000 annual spend target. Ouch! Redeeming Rewards With Open Road

While you can redeem your rewards for partner gift cards, merchandise, and Discover Gift Cards, at the end of the day straight-up cash redemption is the way to go. Nothing fancy here. The minimum redemption is in $20 increments.

PIQ’s Final Word on the Open Road Discover Card

While the Discover Open Road Card is a train-wreck, there are some other cards that can step in to fill the gap. We’ve already mentioned the Discover Escape card for a pure best-in-class cashback rewards card. If you’re interested in a gas card, check out our review of the PenFed Platinum Visa Rewards Card , which offers a whopping 5% cash back bonus on all gas spend with no caps. For a powerhouse restaurant card, check out our review of the Citi Forward Card , earning you 5 ThankYou Points for every $1 of restaurant spend.