How do you exactly choose the best 0% balance transfer credit card? Well, it depends how long is the introductory offer? What is the rate thereafter? But more importantly, does it charge any balance transfer fees?

But there’s more to balance transfer fees that meets the eye. If you are not careful, that 0% teaser deal may not work out so well. A typical term for a balance transfer fee goes like this :

3% of balance transfer, mininum of $10, maximum of $75.

But, some credit card issuers have become sneaky. These are the tricks they use :

No Cap on Maximum Fees!

Yes, some credit cards offer great 0% teaser deals for balance transfer. They charge a fee, but do not cap it. Bank of America credit cards at the moment have no cap on their balance transfer fee. When there is no cap, then you are essentially not getting a 0% deal, but you are paying them 3% interest instead! Plus, it is all UPFRONT FEE! Below are Bank of America credit cards that seem to offer great 0% balance transfer deals for 12 months, but do not put a cap on the balance transfer fee.

Different Maximum Fees for Different Credit Cards

Citibank is guilty of this practice. Almost all of their credit cards have different balance transfer fee arrangements. Hence, every 0% teaser deal for 12 months is different. This is really irritating when I’m reviewing citicards and I would suspect really confusing for consumers as well. I think most consumers would not read the fine print and end up either getting a good balance transfer deal or a bad one by luck or chance! To prove my point, below is a list of citicards with 0% for 12 months balance transfer offers and their fees :

Citi Diamond Preferred Rewards Card - 3% of BT, minimumn of $5 and maximum of $250

Citi PremierPass Card - 3% of BT, minimum of $5 and maximum of $250

Citi Platinum Select Card - 3% of BT, minimum of $5 and no maximum!

Citi Diamond Preferred Card, Citi Upromise Card, Citi Home Rebate Platinum Select Card and Citi Drivers Edge have no balance transfer fee for the introductory period.

As you can see, what citicards is doing is plainly confusing. Some cards have higher caps for their balance transfer fees, and some have no balance transfer fees. I bet they are simply doing test marketing.

The low down on balance transfer fees among issuers

Bank of America - No cap to the maximum fees. Do not get Bank of America credit cards just for a balance transfer deal.

Chase - has a standard 3% of balance transfer, minimum of $10, maximum of $75 BT fee. But just recently, Chase has stopped offering 0% balance transfer deals for 12 months and cut them down to six months. So I am not recommending ant Chase credit cards simply for balance transfer.

Discover Cards - Discover Cards have the same balance transfer fee policy as Chase. 3% of balance transfer, minimum of $10 and maximum of $75.

HSBC - If you are a HSBC bank customer, the balance transfer fee is waived if you apply for a HSBC card and do the balance transfer upon application or during the introductory window. If you are not a HSBC customer, the balance transfer fee is 3% of balance transfer, minimum of $5, and a maximum of $99.

Citicards - Well, as mentioned above, they have different balance transfer fees for different cards. Some have no balance transfer fees during the introductory. The one good feature about citicards is that you are allowed to do your first balance transfer during the first 12 months and the 12 month introductory period starts from the date of balance transfer (not account opening date).

So which are the Best 0% Balance Transfer Credit Cards

Well, to make life simple, these are the cards I recommend after reading every one of these fine prints.

Citi® Diamond Preferred® Card - 0% for 12 months (purchase and balance transfer), no balance transfer fee. Can do your first transfer within 12 months and intro period starts from date of transfer.

Citi® Home Rebate Platinum Select® MasterCard® - 0% for 12 months (balance transfers), no balance transfer fees. Can do your first transfer within 12 months and intro period starts from date of transfer.

Citi® Driver’s Edge® Platinum Select® Card - 0% for 12 months (balance transfers), no balance transfer fees. Can do your first transfer within 12 months and intro period starts from date of transfer.

Citi® Upromise® Card - 0% for 12 months (balance transfers), no balance transfer fees. Can do your first transfer within 12 months and intro period starts from date of transfer.

Longest Introductory Period

But my best recommendation would be to get the Advanta Platinum BusinessCard with Rewards. It has a 0% balance transfer deal for 15 months, the longest introductory period at this moment. It has a balance transfer fee. But a 3% of BT, minimum of $5 and maximum of $50, this is still worth doing a balance transfer if you have a large amount to transfer. Though it is a business card, you can apply even if you do not have a business. You will simply be treated as a sole proprietor. Just enter “business individual” under “business type” and “owner” under “position”.

I hope you found this post helpful. Share any balance transfer stories you have.