Rewards Cards With No Balance Transfer Fee

The Associated Press

Balance transfer offers are getting a whole lot sweeter for those with good to excellent credit. Introductory rates of 0 percent are now as long as 18 months, more than double the average time offered at the height of the recession.

The newfound generosity comes as banks compete to land the top spenders with clean credit records. These customers are increasingly prized now that new regulations have limited the penalty charges issuers can collect from less reliable cardholders.

Before jumping at the chance to switch cards, however, there are pros and cons that need to be weighed carefully. For example, it might turn out the introductory rate isn't worth the transfer fees or a higher regular rate that kicks in later. Moving your balance to another card could also ding your credit score.

Here's what you should know before making the leap:

It's intended to catch your eye — "0 percent introductory rate!" What isn't so prominently advertised is the fee you'll be charged for moving your balance.

This fee is typically 3 to 5 percent of your balance. And unlike before the recession, most issuers no longer cap how high that fee can go. So on a $10,000 balance, the fee would be between $300 and $500.

To properly size up the value of any balance transfer offer, you'll need to weigh the fee against any potential savings on interest charges. Luckily, the proliferation of online credit card calculators means you don't have to put your math skills to the test.

Bankrate.com has a detailed balance transfer calculator that can be found here . For a simpler version that looks solely at potential interest costs, try CardHub.com's calculator .

Remember that you need to be realistic about how quickly you intend to pay off your balance. Otherwise, your estimates on how much you stand to save will be way off base.

Rates vs. rewards A 0 percent introductory rate on balance transfers is standard. The key is looking at the terms you'll face once the honeymoon ends.

To start, check the regular interest rate that takes effect after the introductory period. The offer will cite a range of rates; the exact rate you're approved for will depend on your credit profile. And don't forget that a late payment could trigger that interest rate earlier.

Also be aware that the interest rate on balance transfers doesn't always apply to new purchases during the introductory period. Or you may get 0 percent interest on new purchases for a shorter period than for your balance transfer.

Companion Credit Union Rewards MasterCard | Credit Card Finder

The Rewards Program

The rewards program that comes with the Companion Credit Union Rewards MasterCard allows card holders to redeem the points they earn for more than 300 gifts. Whether you like to travel, love gadgets or simply want a little cash back, you will find something to please you.

Earning points with the Companion Credit Union Rewards MasterCard is quite simple as you receive 1 point for every dollar you spend. These points can then be redeemed for any rewards you like, with no restrictions other than the number of points you have available. An additional benefit is that these points never expire, so you aren’t obliged to redeem them within a certain timeframe or lose them, making it much easier to control your spending habits.

It is important to note that you will not be able to earn points on cash advances, balance transfer deals or on any special promotions.

A closer look at the rewards available reveals that you can opt for gifts such as books, wine, subscriptions and more, as well as electronics ranging from iPods to cameras and printers. Additionally, if you prefer, you can opt for shopping vouchers to shops like Kmart, Myer, Harvey Norman and Target, or you can simply take cashback which can be used to lower your outstanding balance or to cover the annual fee.

If you travel frequently, you can opt for the Gold Companion Credit Union Rewards MasterCard, which features the Qantas frequent flyer rewards scheme. All the points you accrue will then be transferred to your Qantas Frequent Flyer account. If you choose this route, expect to pay over $110 in annual fees, so make sure that the number of points you accrue will at least offset this cost.

Balance transfer options are becoming increasingly popular as more and more people want to rid themselves of debt. It’s one of the easiest ways to pay down a lot of existing credit card debt since balance transfer offers come with a very low interest rate. This way you can pay off your debt much faster and it is also a lot cheaper.

The Companion Credit Union Rewards MasterCard features an excellent balance transfer offer, with a 2.9% interest rate per annum for the first six months. After this the rate reverts to the standard 19.49% per annum for retail purchases. However, it should be important to note that if you make any purchases on your card while having an outstanding balance transfer, your repayments will go towards paying the balance transfer rather than the purchases. This means you will reduce your balance transfer amount but the money you spent on your purchases will start accruing the standard debt, which often makes it a bad idea to shop with the card until you have paid off your balance transfer.