Bank Card W No Apr On Balance Transfer

How Efficient Debt Balance Transfers Are For Credit Card Debt Consolidation

According to a recent study conducted by Kiplinger.com, more people are going for balance transfer to answer for their credit card debt consolidation. Proving it in numbers is the 71% of customers that have reported 0% balance transfer interest rates that lasted for 12 months, that period being the “grace period” before the bank charges higher interest rates.

With the remnants of the recent global recession still shaking the people’s financial stability, people in grave financial debt are turning to credit card balance transfers to pay for their debt without the piling interest rates.

This credit card debt consolidation technique has been largely debated as to its efficiency. Some financial experts point out that the move is risky, being that there are banks that stay loyal to the premise of helping people in credit card debt consolidation while others charge excessive fees for balance transfers or do other similar cheats.

As the demand grows for this kind of debt consolidation technique, experts warn the borrowing public to be vigilant on banks and that they analyze their situation well first before doing balance transfers.

NerdWallet's Best Low APR Cards, Spring 2011 Edition

There are some situations where you don’t necessarily need a low APR credit card. If you need to pay off a hefty chunk of debt but can do so in two years, a 0% balance transfer card is your best option. And if you don’t tend to carry a balance at all, a rewards credit card gives you the best value.

However, for pretty much everyone else, a low interest rate is the first thing to look for in a credit card. In this case, a  credit union will generally be your best option. However, credit unions typically have limited eligibility, and if you can’t or don’t want to join one, many banks these days are offering long promotional APR periods, and even lower ongoing APR’s.

Here is NerdWallet’s list of the best low APR credit cards. Each one has its own niche, and appeals to a different cardholder. Take the time to find the best card to suit your credit score, spending habits and existing balance.

The Low-Rate Visa Platinum is sweet and simple. No annual fees, no rewards, no promotional period, but a delightfully low 7% minimum APR. If you have good credit and don’t care about balance transfers or rewards, you don’t get much better than this from a bank. Even if you do have a slight existing balance, the balance transfer fee is a lower-than-average 2%, making this an ideal choice for those who need some time to work down their debt. The only drawback? Zions Bank is a regional bank focused in the Salt Lake City area, so may not be a great choice for people outside of Utah.

The Simmons First Visa Platinum is almost identical to the Zions card, except that it’s offered by an online bank, rather than a regional one. There’s no annual fee, no special promotions, and no rewards, just a hard-to-beat minimum APR of 7.25%. The card’s strength is its simplicity. There is no balance transfer fee, so keep that in mind if you have long-term debt to pay off. If you can shed your debt in less than two years, try for a 0% balance transfer card with an extended promotional period; otherwise, keep your eye on this one. A word of warning: you need excellent credit to apply. That means a FICO score of 720 or higher.

Unlike the previous cards, the  Diamond Preferred offers a promotional 0% APR on purchases and balance transfers for 18 months. After the promo period, the minimum APR is 11.99% – still on the lower end, but not the best out there. We recommend this card if you’re looking to make a large purchase or consolidate existing balances and can pay everything off with relative speed. If, at the end of the 18-month promo period, you still have debt outstanding, we recommend that you threaten to switch to another card. Sometimes these banks will extend the promo period, so they don’t lose your business. The card has no annual fee or rewards program, so it’s tailored for those who carry a balance month over month.