Balance Transfer Credit Cards with No Annual Fee

More About Balance Transfer Cards with Zero Annual Fees

The balance transfer card is a fantastic way to get serious about your debt and paying it back. However, many balance transfer credit card deals also charge an annual fee, a charge that may significantly negate the savings you stand to make in terms of reduced interest. On the other hand, paying an annual may have less impact if you plan on transferring a very large balance.

Deciding What to Choose

Q: Why is are zero annual fee balance credit cards a good idea? A: The answer is simple really. You can save even more money because not only do you get the benefit of paying less interest every month, but you also don’t have to pay an annual fee.

Q: What does the best no annual fee balance transfer deal look like? A: If you could design your own deal, then there would be “no annual fee’:http://www.creditcardcompare.com.au/no-annual-fee-credit-cards.php to pay and 0% interest on balance transfers for at least 6 months. Deals like this are few and far between though. If a balance transfer card has no annual fees, the interest rate tends to be somewhere between 1 and 6% for up to 12 months.

Q: I am transferring a small balance. How will an annual fee affect me? A: The smaller the balance you are planning to transfer to your new card, the more important it is to pay a lower, or no, annual fee. Why is this? On smaller balance transfers the amount of money you can save due to paying a reduced interest rate is lower, which means the ratio of money saved to the cost of the annual fee is lower. In effect, the annual fee could practically wipe out any money saved by transferring a small balance. In this situation, a balance transfer without annual fees would help you save more money.

Q: I am transferring a large balance. Is it important that I pay no annual fee? A: The general rule of thumb is the larger the amount you want to transfer to a new card, the less important it is to avoid paying the annual fee. When you have a large balance to transfer, it’s more important to get as low a balance transfer interest rate as possible so that you pay less interest per month. While paying no annual fee would be a bonus, you’d probably save more money by getting a lower interest rate for a longer introductory period.

Q: What should I do when my priority is to pay off debt? A: if you are looking to get rid of your debts then the very last thing you should do with your card is to use it to make purchases. Even though you may have the cheapest possible balance transfer offer, and by that we mean a no annual fee balance transfer deal with a low or zero interest rate, purchases will probably still be charged a much higher rate of interest. Spending on your card when you want to use the low balance transfer rate to pay back debt is not a good plan.

Q: Who can get a no annual fee balance transfer card? A: Generally speaking you need to have fairly good credit history to be eligible for one of these cards. If you are unsure what each card’s criteria is, we’ll show you what the banks are looking for when you click through to the application form.

Q: Can multiple cards be consolidated onto one card with no annual fee? A: For the sake of brevity, yes. When you’re filling out the application for, you can fill in the details of one or more balances to transfer.