Browse the Best Balance Transfer Credit Cards

 

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What is a Balance Transfer Credit Card? 

A balance transfer credit card is a type of credit card offer meaning that cardholders can transfer credit card debt from multiple cards onto one in order to consolidate the amount owed. This is a popular debt management strategy, because having all your credit card debt compiled in one place can potentially reduce overall costs. 

Many of the best credit card balance transfer offers include features to simplify your payments and save you money. When applying for a balance transfer card, you’ll want to look for perks like: 

• Long 0% introductory APR periods  
• Low or fixed interest rates 
• Waived balance transfer fees 
• No annual fee 

The Pros and Cons of Transferring a Credit Card Balance  

The main reason to apply for a balance transfer card is because it can make the process of paying off your debt a little easier. When carrying debt across several cards, it can be difficult to know which balance to tackle first, leaving you feeling overwhelmed on all sides. With all of your debt compiled onto one card instead, you can focus your energy in one direction and possibly feel more empowered to tackle your payments.  

This approach to debt management may also help you save money in the long run and reduce your risk of defaulting. Rather than juggling multiple cards with variable APRs and fees, you’ll have just one (hopefully low) APR to worry about. That’s where 0% APR $0 balance transfer credit cards come into play.

However, debt consolidation using a balance transfer card isn’t always the most lucrative option. For instance, it’s not as effective if you have student loans and other types of debt as well. It’s also important to make sure you have a payment strategy in place and stick to it. Otherwise, you may cancel out any benefits from transferring your balances in the first place.  

How to Transfer a Credit Card Balance 

It helps to know how balance transfers work before you jump into applying for your first balance transfer credit card. Otherwise, you may choose a card that doesn’t fit your situation well and end up compounding your debt, rather than reducing it. Follow these steps to get on the right track toward eliminating your credit card debt: 

1. Examine your current credit cards. It’s important to note the interest rates, fees, balances, and other information for the cards you already have. That way, you can ensure your new card has better terms. You’ll also need to keep track of the issuers, so you’re sure choose a different one; you usually can’t perform same-issuer transfers. 
2. Make a plan for paying off your debt. How fast can you realistically pay off this debt? What is the largest monthly payment you can consistently afford? Questions like these can help you identify the card that fits your needs. 
3. Select and apply for a balance transfer card. Put what you’ve learned about your financial needs and goals into your research to find a card with the right APRs, intro period, and credit limit. 
4. Request the balance transfer. Contact the issuer of your new card either online or over the phone to initiate the transfer of each balance.  
5. Keep up with your payments. The best way to make a balance transfer credit card worthwhile is to make consistent payments. 

For more information on this process, you can check out our full article addressing the question “How do credit card balance transfers work?” 

How to Spot the Best Balance Transfer Credit Cards 

As with all credit cards, some balance transfer credit cards are better than others. The best one for you will also depend on your own financial circumstances. For that reason, you’ll want to look out for a few features in particular to make sure you get the most out of your new card while you pay off the balance. 

No Credit Card Balance Transfer Fee 

It’s not often that you find a balance transfer credit card with no fee for balance transfers, which is why it’s considered a standout feature. Some cards waive the fee for the first few months, while others skip it completely. This can save you hundreds of dollars on each transfer, depending on the size. Most credit cards charge at least $5 or 3% of the amount of each transfer, if not more. 

Low Regular Interest 

The main point in applying for a balance transfer credit card is to get a lower rate than you currently have. That way, you can minimize your interest accrual over time while you pay off your balance.  

APRs for low interest credit cards can vary widely depending on your creditworthiness and the size of the issuer. For instance, the best low interest balance transfer card for fair credit at a credit union will look very different than what big banks may offer for the same credit score. You’ll want to make sure you qualify for reasonable rates on whichever card you choose to apply for, as this will affect how beneficial the card is for you. 

Long Introductory Period 

In order to avoid paying interest on the balance, you’ll want to look for 0% interest balance transfer credit cards. The longer the introductory period, the more time you’ll have to pay off the debt without accruing more interest.  

Some of the best options offer 0% APR for anywhere from 12 to 21 months. It’s also important to note any limitations to the introductory period. Specifically, many cards only offer 0% interest for transfers made in the first 60 days from account opening.  

Some quality balance transfer credit cards also provide 0% on balance transfers and 0% on purchases for 12 months or more. These cards make financing larger purchases easy and straightforward, as cardholders pay down the balance over 12 months, rather than right away.

High Credit Limit 

You’ll want to pay attention to the credit limit available with the card, because you won’t be able to move all of your debt over if it exceeds this amount. This can be tricky to navigate, especially if you have less-than-stellar credit.  

While not technically a balance transfer card, the Upgrade Card can be a great option for this situation. This credit line can offer lower rates and higher limits that you would find with most traditional credit card offers. Rather than transferring a balance to the card, you transfer the necessary funds from the credit line to your bank account to pay off your credit cards. The best part is, you can skip balance transfer fees altogether and even pay off other types of debt as well. 

Balance Transfer FAQs

Balance transfers can seem confusing – but they don’t have to be. Here are some of the most commonly asked questions about balance transfers and balance transfer credit cards:

What is a balance transfer?

• A balance transfer is a process of taking an existing credit card balance and moving it to a new account with a lower regular APR. These transfers make it easier to pay down balances and often come with intro APR offers.

Who can qualify for a balance transfer card?

• Because these types of cards offer low-interest rates, a good credit score is a minimum requirement for a balance transfer card. Many issuers require an excellent credit score, so a good benchmark for obtaining a card like these is a FICO Score of 700 or higher.

What are the downsides to a balance transfer?

• Because these cards feature an introductory rate, you might find yourself stuck with more debt than you began. After the promotional period ends, only those with the best credit scores will have the lowest rates. Those with good credit might be paying a higher APR – primarily if they conduct their transfer using a rewards credit card. Other negatives of transferring a balance include:
  • Increasing credit utilization on a single card, which can lower your credit score.
  • Lowering the average age of your credit accounts by opening a new line of credit.
  • A new line of credit also means a further hard inquiry, which can also impact your credit score.

Do all balance transfer cards come with 0% intro APR?

• While many cards feature 0% intro AR, not all balance transfer cards provide an interest-free period, some cards – especially those from credit unions or smaller banks – may only offer a reduced interest rate. These rates maybe 3.99% or higher, but are often significantly lower than the standard variable APR.

Do all card issuers offer a balance transfer card?

• While most major card issuers provide a variety of offers, not all currently offer a balance transfer credit card. Most significant issuers and banks, like Chase (Chase Slate Card), Citi (the Citi Simplicity Card), and others, provide balance transfer cards and low APR Cards. Discover also reintroduced its balance transfer card, the Discover It Balance Transfer.

What is the average interest rate on a balance transfer card?

• According to the BestCards guide to the average APR for all types of credit cards, the current average interest rate for a balance transfer card is approximately 16.99%.

Do rewards cards make good balance transfer cards?

• In some cases, yes. Some cash back cards, like the Citi Double Cash Card, offer 0% APR on balance transfers and cash back rewards program in one package. Just be sure to pay your statement balance in full before the due date, or you might incur a late fee or penalty APR.

Find Your Balance Transfer Credit Card 

The BestCards team works to provide the most up-to-date information and honest reviews on the balance transfer credit cards currently available. Browse our collection of over 800 cards to compare your options, and get valuable guidance from our resource articles. Let us help you find the perfect card for your wallet!