No Fee Balance Transfers
When shopping for a credit card to use for balance transfers, the ultimate goal is to save as much money as possible. Because almost all banks charge a transaction fee on cards with favorable balance transfer interest rate pricing, when there are offers available that do not come strapped with this type of fee, it's usually a good idea to take advantage of them. Typical transfer fees range in the 3-5% range. Some cards even have tiered fee structures where the fee is lower when balance transfers are performed within a certain time-frame from account opening. Because it is not possible to transfer balances internally, for example a Discover account cannot be moved to another Discover Card, consumers who have large high interest bearing accounts accumulating more debt from other issuers turn to 0% no fee balance transfer offers like the ones below to save money. The following products offer no transaction fees with the ability to transfer account balances online. To take advantage of this perk, click on the apply button to load a secure application over the respective bank's server.

No Fee Balance Transfer Credit Card Application FAQ's
The most common questions surrounding no fee balance transfer credit cards are whether it makes more sense to take advantage of a card without fees when there are others with longer 0% introductory terms. For the most part, it almost always makes more sense to take advantage of a no fee balance transfer credit card vs. a credit card that does accept balance transfers and charges a transaction fee even if that card has a longer period where no interest is charged.

The rationale is that even if the fee is low (3%) you still pay $30 per every $1000 on that existing account. At the end of the 0% term on the no fee transfer card you can always shop around for a new card. Even if there aren't any deals around at that point offering no fee transfers, the price to move the debt at that point, assuming it had not been paid off would be much lower, hence the cost of the transaction would be lower. Here is a scenario with some numbers when transferring $1000 worth of debt:


Option One: A No Fee Balance Transfer Card with a 0% Rate Lasting 12 Months
If debt was moved to this card and if $25 was paid per month (the average minimum payment is around 2.5%) at the end of 12 months the total remaining debt would be $700.

Option Two: A 0% Balance Transfer Card for 18 Months with a 3% Balance Transfer Fee
If the debt was moved to this card, the 3% fee was charged, and $25 was applied to the new account every month, at the end of 12 months there would be $730 left on the card. Granted, this card provides an additional 6 months of no interest which we will outline.

So, in one scenario there is $700 left and the other $730. At the 12 month mark, the end of the no fee offer, the consumer has the ability to hunt around for another balance transfer offer. If there is another no fee balance transfer deal available from another bank then he/she can jump on that offer. But let's say there isn't; and to play devil's advocate, let's say worse case scenario there is only a balance transfer card with 0% for 6 months and charges a 3% fee:


Option One's Balance 12 Months Later - Moving it to a 3% Fee Card with 0% for 6 Months
The fee assessed would be 3% of $700 as $300 would have been applied to the account over the prior 12 months. This results in a new debt amount of $721 as 3% of $700 is $21. Now, over the next 6 months, let's say that again, $25 was applied per month to the account. The resulting debt after the new 6 month period would be $571.

Option Two's Balance 12 Months Later - Continuing the 0% Term for the Last 6 Months
At the 12 month mark, this card still has $730 left but it does have the luxury of an additional six months without interest. Again, if the same amount per month were to be paid monthly, at the end of this 6 month period the resulting debt would be $580, which is $9 more than that of Option One.

A $9 Difference? Why is that such a great deal?
The example above illustrates the worst case scenario employing a very low monthly payment to a low balance transferred with limited options thereafter. Based on historical availability of balance transfer credit cards, almost every issuer has provided balance transfer offers with 0% rates with a minimum of 12 months so the above outlined Option One could find a 0% deal after the 12 months that would last a minimum of 12 more months. In addition, the larger the amount moved, the greater the savings is with a no fee offer. For those still not convinced, here's a large balance transfer scenario with current market conditions assuming the exact same offers are available in the future:

Moving $5000 to Slate from Chase - No Fee 0% for 15 Months with a Monthly Payment of $125 or $200
At the end of 15 months the remaining debt would be either $3125 or $2000 depending on whether $125 or $200 was applied every month. At that point the cardholder could apply for a card with a 3% fee and a 0% term. The new balance would be either $3218.75 or $2060.

Moving $5000 to a 0% for 18 Months Card with a 3% Fee While Paying $125 or $200 Monthly
The fee would tack on an additional $150 to the debt putting the total debt at $5150. At the end of 15 months the new debt would be either $3275 or $2150 depending on which amount was payed on the account every month.

The Following Months
With scenario one, if that card was then moved to a 0% offer of 18 months with a 3% fee the cardholder would have new balances of either $3218.75 or $2060 as outlined above and again depending on the repayment plan selected. If the payment habits were continued, at 18 months the total remaining debt would be $968.75 using the $125 per month plan. With the other scenario, the $200 per month plan, after 10 months there would be just $60 of remaining debt and by cutting a check for that amount the consumer would be debt free by the end of the 11th month. Therefore, the total amount of time it would take the consumer to eliminate their balance using method one would be 26 months where after 33 months using payment method two the remaining debt would be $968.75 

With scenario number two, let's say that the cardholder elected to transfer their balance to another 0% offer with a 3% fee to another card with no interest for 18 months after the initial transaction's interest free period finished. The cardholder would either be paying $125 per month on $2987 or $200 on $1596.50. Using the first method, at the end of 18 months the debt would be $737 albeit at the 33 month mark to compare it to scenario one, it would be $1112 -- $143.25 higher. Using the $200 per month payment plan the debt would be erased 8 months into the new credit card account's life but that last payment would be $136.50 more than that of using the no fee route.

The Numbers Don't Lie
Since the primary goal with utilizing balance transfers is to save money the best way to do so is with a no fee balance transfer credit card. Though the savings in some cases aren't as substantial as others, they are always there which is why it makes the most sense. For fiscally responsible individuals and those striving to be, it it is recommended to take advantage of cards with this attribute when available.




 
Important Disclaimer: *See the online credit card applications for details about terms and conditions of reward programs, balance transfer rates, other terms and conditions of the offers presented. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the " Apply" button you can review the credit card terms and conditions on the credit card issuer's web site.

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