Best Balance Transfer Credit Cards For Bad Credit

Before going towards the best balance transfer credit cards, we have to understand the concept behind the phenomena of transferring the balance from one credit card to another and the bad credit. Firstly, let’s understand what does a balance transfer mean on a credit card, Its benefits, and its fee?

What is a Balance Transfer Credit Card?

When the unpaid balance of one credit card is transferred to another credit card account, the balance transfer occurs. Balance transfer through a credit card can be a bang-up way to preserve money on high-interest rate debt. The possible consumers are those who are looking for the lowest interest rate.

Many credit card issuers offer introductory balance transfer annual percentage rate (APR) that is lower than the standard rates. Balance transfers usually have fees.

There can be many benefits that come with uniting your debts into just one payment.

Example: let a person has a high balance on a one credit card with a 25% APR, he may be able to transfer that debt to a credit card with a lower rate during the introductory period, saving money on interest—and possibly helps to pay down the debt faster.

Benefits of Balance Transfer

  • A balance transfer with low APR may help to reduce the time it takes to cut down the debt. But paying high APR means a lot of balance moves to the interest rather than paying the principal balance.
  • Payments for multiple credit cards at different due dates, all are united at one credit card with a low APR means keeping a track of one payment a month.
  • It will save money by less payment of interest on credit card debt. But all this depends on the offered deal and the fees. Calculations are required before jumping into it.

Fee for Balance Transfer

The average fee for a balance transfer is 3% to 5%. For instance, if a person has a credit card balance of $20,000 and he wants to move it to a 0% interest balance transfer card with a 3% balance transfer fee, it may cost $600. Similarly, if the transfer fee is 5%, it might cost $1000 to make the substitution.

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What do We mean by a Bad Credit?

A past record to not to keep up with payments on your credit agreements, resulting in the inability to get sanctioned for new credit. It usually means that a person hasn’t paid credit and other bonds on time. Other credits also take into account public records such as taxes, bankruptcies or legal discernment. All this is the part of the bad credit. Bad credit usually narrates an individual’s credit record. An individual who gives money to a person with bad credit suffers a higher risk of missing payments than an individual who gives to persons with good credit.

Effects of Bad Credit

Bad credit has many bad effects on an individual’s life. For instance,

  • Security deposit on credit card, loan approval, and interest rate.
  • Insurance companies consider credit score upon quoting insurance rate.
  • Utility and cell phone suppliers charge a security deposit.
  • Landlords may require a higher security deposit.

A Path from Bad Credit to Good Credit

A bad credit is easy to come but difficult to leave. The key to getting out of the bad credit is to catch up all the dues, bills or loans in such a way that the creditor accepts an individual’s ability to handle credit responsibilities. It might be difficult to achieve a good credit score, but once an individual achieves the momentum, he will be on the way to incline to a good credit score.

An individual has to get a new account. Due to anxieties, Many people avoid new credit cards after bad credit frightening that new credit cards will only bring a new trouble again. Avoiding credit card, however, makes more challenging to rebuild good credit. The best option to improve credit history is Secured Credit Cards. Proper credit behavior can be a way to improve credit score. Once the credit score improves, an individual can move to unsecured or simple credit cards.

What is the Secured Credit Card?

A card designed for a bad credit individual. Card issuers require an individual to pay a refundable deposit, which secures the available credit. To build a credit score, the easy, simple and fast way is that one needs to have a credit card, a secured card can be worthwhile. Need to make clear that the issuers will report credit behavior and credit score to the 3 major credit companies.

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Balance Transfer Credit Cards for Bad Credit

In theory, balance transfer credit cards for bad credit would allow us to reduce the cost of existing liability by providing a low introductory interest rate. Reality is quite different. Card issuers presently don’t offer worthy balance transfer credit cards to individuals with bad credit.

Finally, let’s have a look on few best secured credit cards with balance transfer ability in the following table.

Best Balance Transfer Credit Cards

Secured Credit Cards Standard APR for Balance Transfer Interest-Free Period Late Payment Fee Annual Fee Credit limit
Min Max
Discover it 24.74% variable Around 25 days $37 $0 $300 $619
UNITY Visa fixed Around 25 days $10 $39 $250 $10,000
First Progress Platinum Prestige MasterCard varies Around 25 days $38 $49 $200 $5,000
Green Dot primor Mastercard® Gold 0% Around 25 days $29 $49 $200 $5,000
OpenSky 0% Around 25 days $27 $35 $200 $3,000
Applied Bank Secured Visa Gold Preferred fixed $38 $48 $200
The First Latitude MasterCard varies Around 25 days $38 $0
SDFCU Savings Secured Visa Platinum Card varies Around 21 days $25 $0 $250
First Progress Platinum Elite MasterCard varies Around 25 days $38 $29 $200 $2,000

Conclusion

Balance transfer through a credit card can be a bang-up way to preserve money on high-interest rate debt. The possible consumers are those who are looking for the lowest interest rate. If a person has a poor or bad credit score, it could be hard to find a balance transfer card. A Secured credit card is designed for a bad credit individual. Card issuers require an individual to pay a refundable deposit, which secures the available credit. Theoretically, balance transfer credit cards for bad credit would allow us to reduce the cost of existing liability by providing a low introductory interest rate but, the reality is quite different.

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