Balance transfer credit cards offer some excellent rewards. However, one must be careful about the terms, conditions and fine print of a credit card
, to make sure that the rewards are actually what they seem to be. Balance transfer is a great option for those who are looking to change the credit card because of higher interest rates or less favorable terms on their existing credit cards. Here are some of the rewards offered by the balance transfer credit cards in the market.
Almost all balance transfer credit cards come with an introductory offer which includes 0% or low APR for the introductory period. There are several variables in this condition and that is where one should do some prior research. Firstly, the 0% introductory rate could be offered only for the balance transfer amount or for the balance transfer as well as the purchases. Secondly, the introductory period could vary anywhere between 6 months to up to 15 months depending upon the credit history of the individual. Lastly, the final APR could be as low as 11% to as high as 20%. The introductory 0% rate is a great opportunity for those with outstanding debts to clear it off and make a saving of $150 - $200.
Some balance transfer credit cards offer up to 20% cash back bonus whenever you shop online. Moreover, you could get special discounts for purchases at specific retail chains thus saving you a lot of money during the shopping season.
Good balance transfer credit cards offer you up to 5% cash back bonus for your purchases at grocery stores, travel, gas, restaurants, home improvement stores and drug stores. These could add up to give you a lot of saving every month. While some cards offer unlimited cash back, others have caps over the amount of cash back you can enjoy. This is also a part of the fine print that card holders should inspect before applying for such cards.
Balance transfer credit cards also offer different types of waivers. Some cards waive off annual fee, late and over the limit fees, while other cards don’t impose any spend-minimum limits or issuance fee. Some cards even waive off currency exchange and cash advance fee for customers who have an excellent credit history. This will benefit those who travel a lot. The balance transfer fee might also be reduced in some cases, although it is more an exception rather than a norm.
Milestone bonuses and rebates
A lot of balance transfer credit cards offer this during the shopping season. Those who go for these reward and balance transfer credit cards will receive $100 cash back if they manage to spend more than $500 - $700, as stipulated in the first 3 months of enrolling for the card. If you are sure about your shopping spree, this reward will let you earn a $100 discount on whatever you spend, which is quite a substantial saving for a 3 month timeframe.