No Balance Transfer Fee Credit Cards

When people talk about no fee credit cards, they usually mean those without annual and monthly membership fees. But some folks want more: a truly fee-free credit card, with no past-due fees, over-limit fees, balance-transfer fees or foreign-exchange fees, either. Cards lacking all such fees do indeed exist. The PenFed Promise Credit Card is one good example. However, there are two important things you need to understand about such offers:

First, if you need a card without over-limit and past-due fees, you shouldn’t be looking for a credit card at all. The damage you’ll do to your credit by missing payments or maxing out your spending limit will surely outweigh whatever you save by avoiding fees for those offenses. This is especially true in the post-CARD Act era, as penalty fees can’t exceed the actions that trigger them. For example, if you spend $5 more than your allotted credit limit, the maximum fee would be $5.

Secondly, there’s no perfect credit card. Every offer has its fair share of pros and cons, and credit cards that lack fees entirely usually compensate by offering worse rewards or interest rates. That’s why credit cards without balance transfer fees have relatively high APRs, why rewards cards without fees tend to offer reduced earning rates, and so on.

The moral of the story is that you should compare credit card offers solely based on the features that will affect you most, given your spending and payment habits. After all, if you plan on using your card for rewards, why would you care if it has a balance transfer fee?

The best free balance transfer credit card is Chase Slate because it offers an introductory APR of 0% for 15 months on balance transfers, a $0 balance transfer fee for 60 days, and a $0 annual fee. Chase Slate also gives 0% for 15 months on new purchases. It requires good credit or better for approval.

The other premier free balance transfer credit card is the Amex EveryDay card. It has an introductory balance transfer APR of 0% for 15 months, a $0 balance transfer fee for the first 60 days, and a $0 annual fee.

Rounding out the top three is a student card, surprisingly enough. The BankAmericard Credit Card for Students offers 0% for 15 months on balance transfers, a $0 balance transfer fee and a $0 annual fee.

There are a few more free balance transfer offers, too. But it’s important to remember that no balance transfer is guaranteed to be free. If you get the right card and repay what you owe by the time regular rates take effect, you’ll have yourself a free transfer. But if you have a balance remaining at that point, or you miss a monthly minimum payment along the way, you’ll end up owing interest.

Best free balance transfer credit cards:

• Chase Slate: 0% for 15 months on balance transfers, $0 balance transfer fee for 60 days, $0 annual fee.
• Amex EveryDay Credit Card: 0% for 15 months on balance transfers, $0 balance transfer fee for 60 days, $0.
• BankAmericard Credit Card for Students: 0% for 15 months on balance transfers, $0 balance transfer fee, $0 annual fee.
• Navy Federal Credit Union Platinum Credit Card: 0% for 12 months on balance transfers, $0 balance transfer fee, $0 annual fee.
• Edward Jones Business Credit Card: 0% for 12 months on balance transfers, $0 balance transfer fee, $0 annual fee for the first year and $25 after.
• Sportsman’s Warehouse Credit Card: Not Offered on balance transfers, $0 balance transfer fee, $0-$29 annual fee depending on creditworthiness.
• Citi Simplicity: 0% for 21 months* on balance transfers, 5% balance transfer fee, $0* annual fee.
• U.S. Bank Visa Platinum: 0% for 18 billing cycles* on balance transfers, 3% balance transfer fee, $0 annual fee.

All in all, it’s difficult to find a balance transfer credit card that not only has a 0% intro APR but also charges no annual fee and balance transfer fee. Now, banks tend to offer either no balance transfer fee credit cards or 0% balance transfers, but not both.

If you’re a student or have at least good credit, though, you’ve got some good options.

Unfortunately not. Balance transfer fees are actually among the least-clearly-expressed account terms on credit card applications, according to WalletHub research. So you might have to scour the fine print or use the “Ctrl + F” hot-key command (if you are applying online) to find it. Even if the application is for a no transfer fee credit card, the lack of a fee will still be listed in the terms and conditions.

A balance transfer credit card can be your ticket to savings and out of credit card debt. But you need to use it responsibly. If you don’t, you could wind up making the situation worse.
With that in mind, here are a few balance transfer mistakes to avoid:

1. Assuming 0% balance transfer offers are always around: People often think they can just hop from one 0% balance transfer card to another until debt-free. But if the music stops and you’re stuck with a big balance and a high regular APR, this will prove to be a very costly mistake. And when the economy takes a turn for the worse, it’s very possible that no 0% transfer cards will be available, especially those with no transfer fee.
   
2. Overestimating your ability to pay: This will result in more of your debt being exposed to a card’s regular APR. Considering that the average 0% balance transfer credit card has a regular rate of 17.51%, you certainly don’t want that.
   
3. Forgetting that most regular APRs are variable: When interest rates are hovering near historical lows, there’s really only one way variable rates can go. And it’s not down.

Finally, failing to use a balance transfer credit card calculator is a big mistake. This type of free tool is the best way to plan your payments and estimate your savings. And it will help you pay off what you owe before expensive regular rates kick in.

Lifetime balance transfer credit cards are simply cards that offer the same balance transfer APR for the lifetime of your transferred debt. In other words, from the time you first transfer your balance to the time you pay it off, the terms of your interest rate will not change, unless you become more than 60 days delinquent. Most credit cards with no balance transfer fees, and any other cards that do not have introductory balance transfer APRs, can therefore be thought of as lifetime balance transfer cards.

While no credit card company would offer 0% on balance transfers for an indefinite period of time, it is not uncommon to find low rates on lifetime balance transfer credit cards. Thus, they are viable alternatives for anyone who a). won’t be able to get out of debt for a couple of years and b). values simplicity and predictability.