#The 5 Best 0% Balance Transfer Credit Cards

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Those who live under a mountain of credit card debt quickly realize that their suffering has two components. First there is the principle, the actual amount of goods and services that was charged to their credit card. Secondly, there are the financing charges imposed each month on their balance. With each statement cycle, their average daily balance is multiplied by one twelfth of the card s Annual Percentage Rate (APR). Therefore, if you owe $10,000 on a card with an APR of 12%, you are incurring $100 in interest each month. Due to the effect of compounding interest, the finance charges incurred each month add to your balance, resulting in more interest being accrued with each passing month. (See also: What You Must Know Before Transferring Credit Card Balances )

How a Balance Transfer Works

To help relieve the burden of debt and acquire new customers, banks have long offered credit cards with a 0% promotional APR, for a limited time, on balance transfers. Applicants who qualify for a new card with these promotional rates can have their existing balance paid off by their new card. During the time that the 0% promotional rate applies, interest is not being accrued on the balance transferred; however, the amount transferred is almost always subject to a one-time balance transfer fee. This fee, typically 3%-5%, is added to the new balance. Also, cardholders are still responsible for making minimum payments on their account. New transactions may incur interest at the standard rate, although in some instances, the 0% promotional rate also applies to new purchases as well. Finally, no matter how much you are struggling with your debt, it is critical that you continue to make all of your payments on time, as only applicants with the excellent credit will qualify for most of these excellent promotional credit card offers.

How to Save Money With a Balance Transfer

First, it is crucial that those seeking a balance transfer do so as part of a comprehensive plan to eliminate their credit card debt. Such a plan should focus on maximizing their income, minimizing their expenses, and regularly paying down their entire credit card before the promotional rate expires.

As part of an overall plan to eliminate debt, the benefits of a balance transfer are clear. For example, if a cardholder has an existing credit balance of $10,000 on a card with a 15% APR, that cardholder is currently accruing $125 in interest each month. If the cardholder continues to pay interest while reducing the balance by $500 each month, that person will still have accrued $1,250 of interest over the 20 months it took him or her to pay off the balance (15% interest applied to an average daily balance of $5,000 over 12 months). Alternatively, that person could accept a balance transfer offer of 21 months at 0% interest with a 3% balance transfer fee. In this case, that person s old balance of $10,000 will be paid off, while they will incur a new balance of $10,000 plus $300 in balance transfer fees. If all goes according to plan, at the end of the 21 months, the new balance will be paid off and the cardholder will have saved nearly $1,000 in interest.

A 0% balance transfer is not an instant solution to the problem of credit card debt. You should think of these offers as a significant push up a big mountain, but you will still have to do most of the work yourself. (See also: 6 Hidden Dangers of Credit Card Balance Transfers )

Top Five 0% Balance Transfer Cards on the Market

Like every aspect of the credit card industry, we are fortunate to enjoy an extremely competitive market for 0% balance transfer credit cards. None of these cards have annual fees, because if you're working on paying off your debt with a balance transfer, you shouldn't be worrying about the extra rewards. Here are the top offers currently available.

Discover it - New! Double Cash back your first year

The Discover it card is offering a 0% introductory APR on balance transfers for 18 months (but only 6 months for purchases). After that, the APR will be 10.99%-22.99% (variable), depending on your credit. Balance transfers are subject to a 3% fee. Plus, you get your recent FICO Credit Scores for free on monthly statements and online to help you stay on top of your credit. And Discover's new Freeze It SM on/off switch lets you prevent new purchases, cash advances and balance transfers on misplaced cards by mobile app and online.

In addition to a great 18 month balance transfer rate, the Discover it card is a great cash rewards card. offering 5% cash back in categories that change each quarter up to the quarterly maximum when you sign up, plus 1% cash back on all other purchases. Right now, they have an exclusive offer for new cardmembers that automatically doubles all the cash back you've earned at the end of your first year. There is no annual fee.

Click here to learn more and apply for the Discover it card today!

Chase Slate

The Chase Slate card is catered specifically for balance transfers, and was named Best Credit Card for Balance Transfers by MONEY Magazine two years in a row in 2013 and 2014. You get 0% Intro APR for 15 months on balance transfers and new purchases. After that the APR will be 12.99%, 17.99%, or 22.99% variable, based on your creditworthiness. What makes this card uniquely suited for balance transfers is the zero intro balance transfer fee when you transfer a balance during the first 60 days your account is open. After that, the fee for future transactions is 3% of the amount transferred, with a minimum of $5. This is a great deal if all you need is a card to transfer a balance to and get a 15 month relief from interest. There is no annual fee.

Citi Simplicity Card

The Citi Simplicity MasterCard from our partner Citi offers a 0% APR for 21 months on both balance transfers and new purchases (that's a long time). After that, the regular balance transfer APR will be 12.99%-22.99% (variable), depending on your credit. There is a $5 or 3% balance transfer fee (whichever is greater). Simplicity doesn't have any cash back or points program, but it does offer no late fees or penalty interest rates, and include exclusive services like Citi Price Rewind. It also includes EMV Chip technology and is compatible with Apple Pay. There is no annual fee.

BankAmericard Credit Card

The BankAmericard credit card offers 0% intro APR on balance transfers for 18 billing cycles, one of the longest introductory periods currently offered by credit cards. This introductory rate applies to balance transfers made within 60 days of opening your account. There is a transfer balance fee of 3% (min $10), and the standard APR for both purchases and balance transfers is 10.99-20.99% variable. There is no annual fee.

Click here to learn more and apply for the BankAmericard credit card today!

Capital One Quicksilver Cash Rewards Credit Card

The Capital One Quicksilver Cash Rewards Credit Card offers 0% intro APR on balance transfers and purchases until July 2016. A 3% fee applies to each balance transferred and the variable APR after the intro period is 12.9%-22.9%. New cardholders also get a $100 cash bonus after spending $500 on purchases within the first 3 months. This straightforward cash back credit card offers unlimited 1.5% cash back on every purchase -- there are no rotating categories or bonus categories to keep track of. There is no annual fee.

Amex Everyday Credit Card from American Express

The Amex Everyday Credit Card offers 0% intro APR on purchases and balance transfers for 15 months (then a variable rate of 12.99% to 21.99%). Get 2x points at US supermarkets (up to $6,000 per year in purchases) and 1x points on other purchases. Earn 20% extra points when you make 20 or more purchases in a billing period. Points can be redeemed as statement credit for travel purchases. New cardholders can earn 10,000 points after making $1,000 in purchases on their card within the first 3 months. Terms and limitations apply.

Low Interest Credit Cards for Long Term Debt

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