How To Pay Down Debt Faster With The Best No Balance Transfer Fee Cards

What are credit cards with no balance transfer fees?

These credit cards are regular credit cards that you can transfer unpaid balances (other sources of debt that you may have) onto. Most card providers will charge a balance transfer fee when you do this, but with a ‘no balance transfer fee’ credit card this will not apply.

Are they a good deal?

These kind of cards can offer a great deal as long as you use them responsibly to pay down debt rather than increase your debt. Typically a credit card provider that is offering a credit card with no balance transfer fee will also be offering the same card with zero interest. If you have some debt that you want to pay down in the cheapest way possible, this kind of card will definitely be worth your consideration.

What kind of balance can I transfer to a credit card?

You can transfer most debt to a credit card if you are creditworthy. If a card provider agrees to give you a credit card, they will assign you a credit limit that will be based on a combination of your credit history and your income. You can then transfer up to that amount as a balance transfer onto your credit card.

What are the benefits of transferring a balance to a credit card?

If you can find a credit card that combines no balance transfer fees with zero interest for a decent length of time (typically a fixed period of between 9 and 15 months) then it might be the cheapest way to ‘borrow money’. You can move any existing debt over to your credit card up to your card’s limit free of a balance transfer fee and for the length of the zero interest clause in your agreement, pay down your balance without incurring any increase or administrative charges. So in effect your debt will only decrease - you will owe nothing more than you transferred for the life of the zero interest agreement.

Are there any pitfalls?

If you miss payments or make late payments there will be penalties and these could cost you more than you were paying before. If you do miss a payment your monthly repayments could immediately be subject to the full APR (annual percentage rate) for your card and the APR rate on these cards is typically at the higher end of the scale.

Finally be aware that it is usually only the balance transfer that will attract no interest. Once you have transferred your balance, any new purchases that you make on your credit card will be subject to the normal APR for your card.