If you’re looking for a cheap balance transfer option, and you happen to live in either Pennsylvania or Ohio, check out the Dollar Bank Low Rate Credit Card.
The card, which features 0% APR on both purchases and balance transfers for the first six months, comes with a very attractive 1% balance transfer fee.
That’s just a third of the typical 3% industry fee, which is certainly a plus for those looking to save some dough.
The 1% fee has a minimum charge of $5, and is only good for transfers conducted during the first six months of account opening. After that, the fee jumps up to the standard 3% balance transfer fee.
The Dollar Bank Low Rate Credit Card also lives up to its name by offering a low, long-term variable rate of 9.49%, which is tied to the prime rate.
For the record, the prime rate was just increased yesterday by 0.25%, and is likely going to increase a few more times in the next couple years, so beware.
But the current 9.49% rate is a lot lower than most other credit cards, which tend to charge APR in the teens, 20% range, or even higher.
Other Options for No Fee or Close to No Fee Balance Transfers
If you don’t live in the aforementioned states, there are similar options available. In fact, I have an entire page dedicated to no fee balance transfers, with over 300 now available nationwide.
Many of them are state-specific offers, so simply scroll to your home state to see what’s available. Many small credit unions and regional banks have some great deals that the big credit card issuers simply won’t match.
Additionally, I always recommend you look out for balance transfer checks in the mail. Some issuers get pretty aggressive with these, offering 0% APR for 12 months or so with just a 1% fee to transfer the balance.
For a $2,500 balance transfer, we’re talking just $25 to get your high-interest credit card debt to a safe haven where no finance charges will be assessed during the 0% APR promotional period.
While it might not be free, it’ll probably save you a lot of money over the alternative, which is keeping the money with a card issuer that charges sky-high interest.