One of the best ways to avoid high interest rates on credit card debt is to take advantage of one of the many credit cards on the market that let you transfer that high-interest balance to a new card and let it sit at a 0% interest rate while you get it paid off.
There are a lot of great no-interest balance transfer offers out there, but the problem is that most of them will charge you a one-time balance transfer fee when you move the balance. This fee is usually 3% but can be as high as 5% depending on the card, meaning you could pay a $30 to $50 fee for every $1000 you transfer.
The good news, though, is that there are at least two credit cards on the market that let you transfer a balance and get a 0% interest rate with NO balance transfer fee. Those cards are:
- BankAmericard Credit Card – There’s no fee to transfer a balance to this Bank of America credit card, as long as you do the transfer in the first 60 days of having the card. Once you make the transfer, you’ll get 15 billing cycles with no interest charges to worry about. (Hopefully you can get that balance completely paid off within that period.) The card also offers a 0% rate on any new purchases charged to the card, but you might want to concentrate on paying down that existing balance instead of making new purchases with this one. (Note that after the first 60 days a 3% fee would apply to any further balance transfers, so get them done within those first couple of months.)
- Chase Slate Credit Card – This card also lets you transfer a balance and get a 0% rate on that balance for 15 months — with no balance transfer fee when you transfer balances within the first 60 days of opening the account. You’ll pay no interest on new purchases made with the card for the first 15 months as well. (Note that after 60 days any balance transfers will have a high 5% balance transfer fee, so this deal is definitely one to take advantage of when you first get approved for the card.)
There are other balance transfer credit cards on the market with longer 0% interest rate periods, but if you want to avoid paying a balance transfer fee, one of these cards is the way to go.