Switch to zero percent balance transfer credit cards
About 2 months ago I got feed up with my Bank of America credit card’s incredibly high interest rate (29.9%) and started looking for credit card options with a lower interest that I could transfer my remaining balance to. I was paying Bank of America more than $100 per month in interest alone and was tired of it.
While the number of options are declining, there are still a number of great credit cards out there offering zero percent balance transfers.
Discover More Card
The card I ended up going with was the Discover More card, and specifically the Discover More Sealife Collection Card. The Discover More card offers the following benefits:
- Zero percent balance transfers
- 5% to 20% Cashback Bonus® at Top Online Retailers
- Up to 1% Unlimited Cashback Bonus® on All Other Purchases Automatically
- Increase, Even Double, Your Rewards When You Redeem for Gift Cards from Our 100 Cashback Bonus® Partners
- No Annual Fee
- Online Account Access
- Online Bill Payment
While this is a card I would highly recommend, there are also other cards offering zero percent balance transfers as well.
The application process
When I applied for my Discover More Card, the application process allowed me to specify which credit card(s) I would transferring the balance(s) for and Discover took care of the rest. All I had to do was call Bank of America and close out my account one the payment from Discover was received.
Discover initiated the balance transfer within a week, and a few days later my Bank of America balance was completely transferred over. A quick call to Bank of America customer service and my account was closed. I of course relished the moment when I told the BofA rep to close the account due to their outrageous rates. They of course tried to keep me, and offered to reduce the rate. I told them in a nice way to “too little, too late”. It felt great.
Accelerating my debt snowball
Since switching, I haven’t paid a single dollar in interest or credit card fees. Instead, I’m applying that extra $100+ in interest and paying on the balance rather than making more money for BofA. By spending just a few minutes applying for a new card and another few minutes closing out my old account, I’ve increased my debt snowball payment by $100 – $150 each month. The best part? It didn’t impact my budget at all! There was a 3% balance transfer fee that I had to pay, but that is a small price compared to the 29.9% monthly I was paying before.
Zero percent balance transfer offers declining
If you’ve been considering moving your high-interest (frankly, that would be anything over 0%) credit card balance over to a 0% offer, now is the time. The number of 0% balance transfer options available area decreasing as the credit market begins to tighten up. I can see these offers slowly declining over the next year.
Transferring your balance is not only a great way to save money, but also a great way to accelerate that debt snowball and be out of debt even sooner.
Remember, I am not at all a fan of credit cards and really despise them, but if you currently hold a credit balance, you are no worse off moving the balance from one card to another, especially when it will save you money. Just don’t make the mistake of transferring your balance and using any remaining credit line you have. Be responsible.
This article is part of an ongoing series called Money Saving Monday. Each Monday, I share tips and techniques you can use to start saving money.
When using your new credit cards online, be sure to trust only merchants that use a credit card payment processing solution that is reputable and secure. This article explains secure processing in detail.