Paying Credit Card Interest? You May Want to Reconsider
If you carry a balance on your credit card, you are now paying more in interest each month. As of December 17, 2015 the Federal Reserve recently announced that all interest rates will increase by 0.25%. For the first time since 2006, the Federal Reserve has determined an increase in interest rates will help the economy return to normal after the 2008 recession, when the rates decreased significantly.
There are a few ways this increase can impact you. If you have a savings account or are looking to start one, you will be able to earn a little more interest on your balance which will help you build a balance quicker. However on the other hand, if you have any sort of debt, such as a balance on a credit card or any other loan with a variable rate, or plan on applying for any type of loan in the near future, you can expect to start pay more in interest.
If you have a balance on your credit card and you’re looking to avoid paying a higher interest rate, the best option for you is to transfer that balance to a balance transferable credit card. These cards offer a 0% intro APR on any transferred balance for an extended period of time — giving you enough time to pay off any credit card balance while paying $0.00 in interest. While most of these cards require a balance transfer fee, which is usually 3 or 5% or the total transferred, the fee is less than the total in interest you will pay in the long-run. With so many balance transfer cards to choose from, here are a few suggestion:
- Chase Slate: The best of the best is the Chase Slate because it’s the only card that combines a long-term 0% intro APR with an intro $0 balance transfer fee.
- Citi Diamond Preferred Card: The Citi Diamond Preferred Card is the best option for someone looking to transfer a hefty balance, as the card offers a 21-month 0% intro APR on balance transfers and purchases. Also, it has no annual fee and allows you to choose your payment day, something most cards don’t offer.
- Discover It: With a lengthy balance transfer APR and cash back rewards, you can’t really go wrong with the Discover it – Double Cash Back your first year on the card. To start, the Discover it card offers a 16-month 0% intro APR on balance transfers, which gives you plenty of time to pay off any credit card balance you’re carrying.