Credit cards are one of the most popular credit tools for US residents. Nearly three-quarters of Americans use credit cards when paying for their purchases and paying bills. They can be very convenient, since this eliminates the need to constantly carry around a lot of cash that can be stolen, it can be lost and it attracts the attention of intruders.
However, the advantages and convenience of credit cards do not cost them to users for free. Credit cards annually generate billions of dollars of debt for Americans. Not everyone understands how to properly handle credit cards in order to minimize debt or even not create debt at all, as long as the grace period with a zero interest rate lasts.
When you are in such a situation and you have a large credit card debt that you find it difficult to pay, you can use the opportunity to reduce your debt with balance transfer. Just look for the best balance transfer cards, which can offer good terms.
There are quite a few offers on the credit card market, many of those can offer better conditions than you have with your old credit card. A lower interest rate on another credit card will mean that you will have to pay the lender less interest per annum, which means you will save significant amounts of money over a long period of using the card. Your debt will thus decrease and you will be able to pay it if you transfer the balance to such a credit card.
How to choose the best option from the best balance transfer cards? We researched the offers available on the market now, comparing a variety of options. Here you can learn our choice that we made based on the needs of people who need to reduce credit card debt.
SunTrust Prime Rewards credit card
One of the best balance transfer cards to reduce debt in many ways is the SunTrust Prime Rewards credit card today. This loan product has attractive terms, especially for those who want to transfer balance from another credit card. Thanks to the zero balance transfer fee for the first 60 days from the moment of registration of the SunTrust card, you can repay your credit card debt without paying interest. This provides you with an excellent opportunity to correct your debt situation.
After 60 days after opening an account, you will have to pay 3% of the amount of the balance that you transferred to the SunTrust card, or $ 10, if it is more than 3% of the amount. The annual interest rate upon entry will be variable. Now it is 5% per annum for the first three years accrued on the balance of the debt that you transfer to the SunTrust Prime Reward card. After that, the variable interest rate will vary in the range from 12.99 to 23% per annum.
The benefits of the SunTrust card also include the absence of an annual fee for card servicing, cashback in the amount of 1% from money spent on certain categories of purchases, as well as the absence of a fee when making payments for goods, services and bills abroad. This means that this card will be convenient to use when traveling and making daily purchases.
If you have a deposit with SunTrust Bank, you can count on a bonus of 10 to 50% in addition to your cash deposit, in the event that you transfer the reward received for use to one of your accounts in this bank. Also, if you spend $ 500 for the first three months of using SunTrust, you will get in credit of $ 100.
Not a single phenomenon in this world is ideal; there are always both advantages and disadvantages. Credit cards are no exception. What are the disadvantages of SunTrust Prime Reward credit card?
The very first and most obvious shortcoming that immediately catches the eye is the 5% annual interest rate of the grace period, which, although it lasts long enough, but most credit cards offer a zero interest rate during the grace period. If you think that you can pay off your debts during a balance transfer in a shorter period than three years, then this option is probably not the most profitable for you.
Even if you close your balance for the first month, you still have to pay off the interest, which will be added to the amount of your credit card debt. It is necessary to take into account the fact that under the assumption of late payment, you are likely to immediately lose the opportunity to pay at a preferential interest rate. Then for you it will no longer be a profitable offer for a balance transfer.
Please consider your financial capabilities correctly and plan your actions when it comes to credit cards and balance transfer from one to another. On top of that, SunTrust offers a low cashback percentage as a reward compared to many other credit cards.
Use SunTrust Prime Reward profitably
The SunTrust Prime Reward card is a good option for balance transfer, as well as for everyday use, if your needs and abilities are well thought out for transferring the balance within the first 60 days from the moment of card registration. In this case, you can count on the absence of an initial membership fee.
If you do not expect to close your balance very quickly, then you get the opportunity to pay the debt at a low interest rate for three years. On average, this may bridge the difference between zero rates on other credit cards, but with a shorter validity period of such rates.
Use SunTrust Prime Reward as one of the best balance transfer cards to reduce debt for its intended purpose, namely, to transfer balance from other credit cards with a higher interest rate. Take it with you on a trip abroad, so as not to lose money on fees for international transactions and get the maximum benefit.
As a second option of the best balance transfer cards to reduce debt we are interested in Chase Slate®. This credit card offers a zero interest rate for new customers during the first 15 months. In addition, when you make a balance transfer from another credit card, you will receive two months, or more precisely 60 days free of payment of the balance transfer charge. You will not have to pay the annual fee for servicing the credit card, and you will also not have to be aware of interest rate penalties in case of a monthly payment that is not made on time.
Upon expiration of the designated grace periods, you will need to pay 5% of the amount of the transferred balance or $ 5 if 5% of the transfer amount will be less. The annual interest rate after 15 months of using a Chase Slate®credit card will be from 16.74 to 25.5%, which is generally a good indicator for a credit card with such conditions. This way you will have a break in order to pay off a large part of your debt and then be able to pay its balance.
The Chase Slate® credit card has its flaws, which should not be ignored. It is imperative to take into account the above described fees and interest rate, that you will need to pay after the grace periods of free use. Before applying for a balance transfer on Chase Slate®, be sure to plan your actions, income and payments in order to use this credit card as profitably as possible for you, and not to get a new debt. This, however, also applies to any other credit cards and loans.
In addition, penalties for late payments will also significantly increase your debt. The amount of penalty payments will depend on the amount of your balance, despite the fact that the annual interest rate will not rise as a fine.
By increasing the amount of debt, you will spend more on interest that the lender relies on. For example, with an annual interest rate of 20% and a debt of $ 1,000, you will spend $ 200 a year to pay interest. But when the same interest rate and the amount of debt is $ 1,200, it will be $ 240. Thus, your entire balance transfer benefit may be lost.
Also, be prepared to pay a 3% commission for each foreign transaction you complete, if you use Chase Slate® when paying for purchases while abroad. This card is created mainly not for travel. If you are going to travel, it’s better to use a different credit card for this, and Chase Slate® will help you deal with your debts.
How to get maximum benefits from the Chase Slate® card?
Chase Slate® is a great option from the best balance transfer cards, which, if used correctly, will give you the opportunity to quickly pay off your debt on a credit card. Try to make the most efficient use of the grace period, which is valid for the first 60 days from the date of registration of the card.
If you have time to repay the entire balance before the expiration of this period, then you will not have to pay an interest rate for this debt. Going to a zero balance, you pay only 5% for the balance transfer of the amount. You will then have another 13 months to use Chase Slate® for your daily purchases and pay bills without interest, while the grace period at 0% annual interest rate is valid.
If you do not have time to pay off the balance, then you will have to pay the usual interest rate, which will depend on your debt amount. In addition, in any case you will pay for the balance transfer, so you should not delay the repayment of the debt, otherwise the meaning of the whole undertaking is lost.
Let’s sum up
If you have accumulated a large debt on your credit card, that has become very difficult for you to pay, then use the offer from one of the best balance transfer cards to reduce debt and solve your difficulties, not get into a debt swamp that would drag in you more and more.
Calculate correctly your financial capabilities and future steps to choose the most suitable offer for you. In one case, it will be a choice of a card with a zero entry fee, and in the other – a longer grace period. But the choice must be deliberate, to avoid a mistake.
Understand the credit card offer to the end, so that not one item and footnote in the terms and conditions and also in the contract were remained not understandable to you. You should be aware of all payments and conditions under which you will have to pay.
If you want to get one of the best balance transfer card you may to fill the application form on our website. In case it is difficult for you to make such a choice by yourself, you can find the necessary information in our financial blog, as well as contact us to get advice.