No Fee Balance Transfer to Your Purchase APR Probably a Bad Idea


We all know it’s near impossible to find a no fee balance transfer these days, especially one that offers 0% APR with no fee.

And we also know it’s big news when a card issuer decides to make such an offer available to the public.

Discover was the most recent card issuer to do so, though the offer was for a limited time and since expired.

This explains why some credit card issuers (I won’t name names) are beginning to offer less lucrative no fee balance transfer credit cards.

They’re doing this because they know the general public is against all fees, and drawn to no fee offers like a moth to a flame.

Unfortunately, many of these deals aren’t really deals, just offers made to sound special because there is no associated balance transfer fee.

So if you see a balance transfer offer that reads, “transfer your balance for free,” make sure the APR is low. And by low, I mean 0% or less than 5%.

You see, some issuers are transferring balances to a card holder’s purchase APR, which is typically in the teens.

In short, this could mean you’re no longer paying 19.99% or higher, and instead paying 11.99%.

Sure, it’s a savings, but still high, especially when there are 0% balance transfer credit cards for as long as 24 months.

These offers have fees, but if you do the math you may find that the balance transfer fee will easily be offset by the lower balance transfer APR.

So don’t settle for a balance transfer offer simply because it doesn’t charge a balance transfer fee, pick an offer that saves you the most money!

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