What Is Balance Transfer Interest Rate
Many credit cards offer an introductory apr on balance transfers a low interest or 0 rate that stays in effect for a set time period which ranges from six months to 21 months or more depending on the card issuer.
What is balance transfer interest rate. And if your balance transfer. A balance transfer lets you save on existing high interest debt by transferring your balance to a card with a lower interest rate or one with a 0 apr offer on balance transfers. The balance transfer rate offered is 0 for six months.
A balance transfer apr is the interest rate you ll pay on balances that you transfer to your credit card. Balance transfers come with certain costs and limitations though. The cardholder pays off 1 000 in six months but because the 15 portion of the credit card debt is paid first the 15 apr rate for six.
Generally you ll have to pay a balance transfer fee usually 3 to 5 of the total transferred. The average balance transfer credit card has a 0 apr for over 12 months with a 3 balance transfer fee and a 0 annual fee. If you transfer that balance to a credit card that offers a 0 percent introductory apr for 12 months on balance transfers the new card may charge a transfer fee typically around 3 percent of the balance.
3 balance transfer fee per transaction. After that the apr for the unpaid balance and any new balance transfers will be a non variable rate of 17 99. A low rate balance transfer can save you money on interest.
When you transfer high interest debt to discover you ll lower your savings goals. The purpose of a balance transfer credit card is to save money and time by reducing the overall cost of credit card debt and allowing you to pay off the balance faster some cards are from wallethub partners. Many balance transfer credit cards will charge a balance transfer fee of 3 to 5 of the amount you transfer usually with a minimum of 5 to 10.
Let s say you transfer 5 000 and there s a 3 balance transfer fee.
