Credit Card Balance Transfer Offers

So 2011 is officially behind us, and it feels like 2012 is already fleeting. After all, it’s already the 4th of January!

Okay, I’m just being dramatic, but the days can get away from you pretty quickly if you don’t take action every on in the year.

I learn this every year when I find myself scurrying to do my taxes in late April.

All that aside, the beginning of the year is a perfect time to assess your financial standing and make moves to improve it.

If you’re like most people, you likely charged up quite a bit of credit card debt during the holiday season.

And if you’re unable to actually pay it all off, you’re likely facing a bit of dilemma. Well, not really a dilemma, but more a harsh reality of credit card finance charges, otherwise known as interest.

Don’t Pay Interest!

But not all hope is lost. There is a simple way to avoid paying interest on your credit card while also continuing to carry a credit card balance.

I’m talking about credit card balance transfers, which put simply, allow you to shift the debt from one credit card company to another.

So if you’ve got a $2,500 credit card balance with Chase (thanks to all those presents you had to buy for family, friends and co-workers), you can transfer it to Discover and pay nothing in finance charges for a certain period of time.

If you have a credit card balance with Chase, you can shift the balance to Discover or Citi or whatever other company allows balance transfers.

The point I’m trying to make is that you can’t transfer balances within the same bank.

Okay, so we’ve got an idea of how balance transfers work and some of the rules. Let’s talk about specific offers for 2012, shall we.

2012 Balance Transfer Offers Are Aggressive

Right now is actually a really great time to transfer a credit card balance thanks to some aggressive offers currently on the table.

Discover just re-launched its no fee balance transfer for a limited period of time. It comes with 0% APR on both balance transfers and purchases with a $0 fee.

In other words, you can transfer a balance and pay nothing to do so. It doesn’t get much better than this folks.

Chase Slate also has a no fee balance transfer on offer. It comes with 0% APR for up to 12 months as well with a $0 fee.

Both these offers have no annual fee, making them truly free balance transfer credit cards, and the only two of their kind currently.

You can learn more about each offer by clicking on the associated links above. These are by far the best offers available, though there are longer 0% APR balance transfers available on the right-hand panel of this site.

Even so, you could always transfer you balances to these cards first for free, then transfer your balance again to a longer-term 0% APR balance transfer card after, assuming you need more time to pay down the balances.

This would effectively reduce any subsequent balance transfer fee, as your balance would likely be smaller because it was paid down during the first transfer.

Strategy: Transfer your balance(s) to one of the mentioned no fee balance transfer credit cards for $0. Pay it down as you prefer.

If there is a significant balance remaining around the 12-month mark, execute another balance transfer to a different 0% APR balance transfer credit card and pay down accordingly. This will be the cheapest way to rid yourself of credit card debt.

(photo: stockerre)

By now, you’ve probably heard about Bank Transfer Day, which was an initiative that called for consumers to move their money from large commercial banks to non-profit credit unions.

Call it the 99% using their numbers to do one over on the 1%, if you catch my drift.

The event took place on November 5, 2011, and at this point it’s unclear how much of an impact it has actually made.

However, what we do now is that it has created a “spin-off” called “Balance Transfer Day,” according to a piece in the Huffington Post.

What is Balance Transfer Day?

In short, Balance Transfer Day, set for December 11, 2011, is a movement (pun intended) of credit card debt from high-APR credit cards to low or 0% APR balance transfer credit cards.

In other words, it’s a call to arms to execute credit card balance transfers to avoid paying costly finance charges.

What makes it, ahem, special, is that we’re all supposed to do it on the same day.

And then repeat it on one specific day of the month each month thereafter until banks take notice and lower credit card APRs and stop with their misleading introductory offers.

The big question mark, of course, is how it will actually impact the banks.

You see, big commercial banks constantly pitch balance transfer offers to customers (it’s good business for them), so it’s a bit confusing as to how this will give customers a “voice” and let them “speak out?”

Additionally, credit card balance transfers merely shift credit card debt from one major bank to another, so the money may go from say Citi to Chase, or from Chase to Discover.

It likely won’t land in the accounts of non-profit, local banks, as they aren’t the ones who offer the most lucrative balance transfer offers.

So no big change, just the shuffling of money from one major bank to another.

Balance Transfer Day a Marketing Ploy?

I did a little digging and discovered the group’s Facebook page, which had a link to a Google search results page for “0% Intro APR on Balance Transfers.”

Interestingly, the author of the Huffington Post article represents a website called Credit-Land.com, which happens to appear in these same Google search results on the first page.

Call it a coincidence, but it almost makes you wonder if it’s all just a marketing ploy to get more sales.

You see, the Credit-Land.com website is merely a page where you fill out applications for credit card balance transfers and the site is presumably paid a commission if a sale or something else positive occurs.

So it makes you wonder if it’s all just a gimmick to increase the volume of balance transfers, especially for the sites that appear on the Google search results page referenced.

Now it’s not to say that there’s anything wrong with balance transfers. In fact, I’m the first to promote their numerous benefits.

But it just seems a bit of a stretch to liken applying for a balance transfer to a form of protest, especially if all the “enemies” are profiting as a result.

Finally, an out-and-out no fee balance transfer offer folks!

That’s right, for a limited time, the Chase Slate credit card is a 0% APR no fee balance transfer!!

This is the only such offer currently available, so act fast if you have high-APR credit card debt that needs to be transferred.

With this deal, you won’t pay a balance transfer fee, and you can enjoy 0% APR for up to 12 months if you have good or excellent credit.

After those 12 months are up, the APR will vary between 11.99-21.99%.

Let’s look at an example of the savings with Chase Slate’s No Fee Balance Transfer:

Credit card debt: $4,000 @21.99%
Balance transfer offer: 0% APR for up to 12 months
Balance transfer fee: $0 (zero)

If you were to leave the debt on your existing credit card, you’d be paying roughly $73 a month and $880 annually in credit card finance charges.

Moving it for free to Chase Slate would save you all that money and allow you to actually get out of debt, as those interest charges wouldn’t be piling up on top of existing debt.

This is why balance transfers are so worthwhile. Not only do they help you save on credit card interest, but they also allow you pay down your debts, which can also improve your credit score!

There is a caveat, although not a significant one. You must transfer your higher rate balances during the first 30 days your account is opened.

So don’t wait…in fact, it’s probably best to transfer the balance at the same time you open the card.

After those 30 days are up, the standard 3% balance transfer fee will apply.

Oh, and the last of all, Chase Slate has no annual fee, making it the only truly free balance transfer credit card out there at the moment.

If this offer interests you, apply here.  It probably won’t last long!

Read more: How long do balance transfers take?

I always write about any possible no fee balance transfer I see. It’s probably the most exciting news that ever comes out of the otherwise dull balance transfer world.

And so here we go again (you’d think we aren’t in a recession).

Earlier this week, Chase revealed a new bonus related to their Slate credit card, which comes with 0% APR on both purchases and balance transfers for up to 15 months.

For a limited time, they’re offering a $75 statement credit if you spend $300 in the first three months from account opening.

As always, “spending” means qualifying transactions, which include both standard purchases and balance transfers.

$75 Bonus Offsets 3% Balance Transfer Fee

So with this offer, you can balance transfer up to $2,500 to the Chase Slate credit card and completely offset the 3% balance transfer fee.

Sure, it’s not the traditional no fee balance transfer offer of a few years ago that is now essentially extinct.

But it’s pretty much the same deal in the end.

And you could even argue that it’s better, given the fact that any transferred amount below $2,500 will net you some positive gains.

If you’re interested, you can apply here.

Chase Freedom Maybe Sweeter

Keep in mind that Chase has a slightly sweeter deal in its Chase Freedom credit card.

You get $100 cash back after spending (transferring) $500 within the first three months.

So you get another $25, or the ability to transfer $3,333 while offsetting the entire 3% fee.

The only downside to this offer is the promotional 0% APR period is just 12 months.

In summary, there are still a ton of great balance transfer offers available, despite all the economic woes that continue to rattle our economy.

So now could be one of the best times to transfer a high-APR credit card balance. And doing so could save you thousands in credit card finance charges.

If you’ve been thinking about executing a balance transfer, you may be wondering if they’re safe.

Well, as with anything that involves your money and personal finances, you need to do your due diligence.

First and foremost, ensure you’re working with a reputable company.

If you’ve never heard of the company, do some research online first to see if they’re trustworthy.

Providing Intimate Details

After all, you’ll need to provide sensitive information to the balance transfer issuer in order to actually carry out the balance transfer.

Things like your credit card or account number, and your social security number.

This is all standard procedure, similar to what you’d need to offer up if you were applying for a new credit card.

The only additional information you’d provide on a balance transfer application would be the existing credit card information.

(How balance transfers work.)

But because you’re likely dealing with two major credit card issuers (or banks), there shouldn’t be too much to worry about.

In fact, you’ll probably be dealing with two multi-billion dollar companies, so safety concerns will be minimal.

Sure, there are some smaller banks that offer balance transfers, but most are still relatively large, FDIC insured, and all-in-all dependable.

Regardless, the majority of consumers will likely transfer credit card balances between the likes of American Express, Bank of America, Capital One, Chase, Citi, or Discover.

If you don’t recognize these names, I’d be pretty surprised.

Assuming you do, there isn’t too much to worry about from that standpoint.

What About Your Credit Score?

Now, you may be worried about carrying out a balance transfer for other reasons, such as the impact it may have on your credit score.

Well, like any application for new credit, you may see a temporary credit score ding related to the balance transfer.

This relates to your heightened risk when you “need new credit.” It’s not a big deal, just a standard signal creditors take in anytime you apply for something.

The good news is that over time, the balance transfer should actually improve your credit score as the debt is paid down and your credit utilization improves.

The idea being that you’re executing the balance transfer to pay down your debt, not simply to shift it.

And it’ll be a lot easier to pay it off without pesky credit card finance charges accruing each month!

In summary, don’t fret. If you have any questions along the way, both banks or credit card issuers will be more than happy to help if you call them directly.

Tip: What credit score do you need for a balance transfer?