Best Balance Transfer Cards: Your Guide to Saving Money
If you’re struggling with multiple loans and carrying a balance on your credit card, you know how quickly interest charges can add up. Fortunately, there’s a way to save money and pay off your debt faster: by using a balance transfer credit card. These cards offer introductory balance transfer offers with low or 0% introductory interest rates for a certain number of billing cycles after account opening, allowing you to transfer your high-interest balances from other cards and focus on paying down your debt through transfers.
To take advantage of the introductory offer, you need to make your first transfer within a specific timeframe and meet the minimum deposit requirements. Keep in mind that introductory balance transfers usually come with an intro balance transfer fee, which can range from 3-5% of the first transfer. Additionally, it is important to note the interest rate and percent APR, as well as the rewards rates and billing cycles. However, some best balance transfer cards also offer free credit score intros and solid welcome bonuses upon account opening.
So what are the best balance transfer cards out there? Let’s take a look at some of our top picks that offer great transfers, credit limits, and credit ratios. Additionally, consider checking out balance transfer options from your local credit union for even more competitive rates.
First up is the Citi Simplicity® Card, one of the best balance transfer credit cards with a lengthy 0% introductory rate period of 18 months! This card also offers no annual fee and no late fees or penalty APRs if you miss a payment. Additionally, it provides an excellent credit ratio and back credit cards with a high credit limit.
Another great option for those with fair credit is the Chase Freedom Unlimited® Card. While it doesn’t have an introductory rate for balance transfers, it does offer an impressive rewards program with unlimited 1.5% cash back on all purchases. Additionally, if you are a member of a credit union, you may be eligible for even better rewards rates. Plus, new cardholders can earn a welcome bonus of $200 after spending $500 in the first three months.
For those seeking an introductory interest rate with no intro balance transfer fee, consider the Amex EveryDay® Credit Card from American Express. It offers a 0% introductory rate on purchases and balance transfers for 15 months with no fee for balances transferred within 60 days of account opening. Plus, enjoy a welcome bonus upon sign-up. If you’re looking for an alternative, check out the Citi Double Cash card.
But what about those with fair credit looking specifically for zero percent interest back credit cards? The Discover it® Balance Transfer Card might be just what you need. It offers an introductory rate of 0% APR on balance transfers for 18 months, a credit limit based on your creditworthiness, and there’s no annual fee.
It’s important to note that not all credit cards allow transfers of balances from any other card. However, most cards will allow transfers of balances from other credit cards, store cards, and some loans. It’s also worth noting that some cards offer introductory 0% interest rates on balance transfers for a limited time, usually during the first few billing cycles after account opening. Keep in mind that your creditworthiness will play a role in whether you’re approved for a balance transfer card and what your credit limit will be.
The Importance of 0% APR Offers for Balance Transfers
Save Money with 0% Intro APR Offers for Balance Transfers
If you’re carrying a balance on a high-interest credit card, transferring that balance to a credit card with a 0% introductory APR offer can result in potential savings. This can help you avoid paying interest charges on your balance for a set period of time, typically a few billing cycles, giving you an opportunity to pay off your debt faster and more affordably. When choosing a card, it’s important to look for the percentage of the introductory APR offer and any account opening requirements.
Long Introductory APR Periods
When searching for a credit card with an introductory APR offer, it’s important to consider the length of the introductory period from account opening. The longer the intro period, the more time you have to pay off your balance without incurring any interest charges. Some cards offer intro periods as long as 18 months or even longer, depending on the billing cycles. Keep in mind that after the intro period ends, the card’s ongoing APR will apply to any remaining balance, so make sure to manage your monthly payment. Also, don’t forget to check if there is an annual fee associated with the card.
Balance Transfer Fees
Another factor to consider when choosing a credit card for balance transfers is whether there are any fees associated with transferring your debt. Many cards charge a balance transfer fee, which is typically around 3-5 percent of the amount transferred. While this fee may seem small compared to the amount of interest you’ll save over time, it’s still important to factor it into your decision-making process. Additionally, make sure to check the rewards rates on the card and consider how many billing cycles you have to pay off the balance before the promotional rate expires.
Low Regular APR
In addition to considering the length of the introductory period and any fees associated with transferring your balance, it’s also important to choose a back credit card with a low regular APR once the intro period ends. This way, if you’re unable to pay off your entire balance during the intro period, you won’t be hit with high-interest charges going forward. Make sure to check the credit limit before applying for a bank credit card, especially if you have fair credit. Also, keep in mind that some cards may have restrictions on transfers.
How To Do A 0% Balance Transfer?
To take advantage of an introductory interest rate offer for balance transfers, you’ll need to apply for a credit card that offers this type of promotion, such as the Citi Double Cash. Once you’re approved for the card, you can typically initiate the balance transfer online or by calling the card issuer. Be sure to have your account information for the other credit card(s) handy when initiating the transfer. Keep in mind that the offer may only be valid for a certain number of billing cycles, so it’s important to pay off your debt before the promotional period ends.
Top Picks for the Best Balance Transfer Cards Available in May 2023
May 2023 presents a variety of balance transfer cards with enticing features and benefits for transfers. If you’re seeking to transfer your high-interest credit card balances onto a new card with a low apr, now is an excellent time to do so. In this section, we’ll discuss the top picks for the best balance transfer cards available in May 2023, including the popular Citi Double Cash card. Be sure to take advantage of the billing cycles to maximize your savings.
Discover it Balance Transfer Card
The Discover it Balance Transfer card is a top pick for May 2023, with its 0% APR for 18 months and no annual fee. This back credit card offers a great deal of value for those who want to save money on interest charges while paying down their balances through transfers. The Discover it Balance Transfer card has no foreign transaction fees and provides a free credit score intro, making it an ideal choice for travelers with a credit limit.
One unique feature of this card is that Discover will match all of the cashback rewards you earn at the end of your first year as a cardholder. Additionally, this card offers an introductory balance transfer offer that allows you to transfer balances from other balance transfer credit cards with no balance transfer fee. This means that if you take advantage of this introductory offer, you can save money on interest and pay off your balances faster.
Citi Simplicity Card
Another great option for those with fair credit is the Citi Simplicity card, which offers a 0% APR for 21 months, a free credit score intro, no late fees or penalty rates, and flexible billing cycles to better manage your monthly payments. This makes it an excellent choice if you need more time to pay off your balances without worrying about additional fees or penalties.
The Citi Simplicity card also offers a free credit score and an introductory APR for balance transfers. This makes it one of the best balance transfer credit cards available in the market. In addition, the card provides an exclusive introductory balance transfer offer and access to Citi Entertainment®, where you can purchase presale tickets and enjoy exclusive experiences for concerts, sporting events, dining experiences, and more. Plus, you can earn cash rewards on your purchases with this card.
U.S. Bank Visa Platinum Card
For those looking for a longer credit balance transfer period, the U.S. Bank Visa Platinum Card is a solid choice with its 0% APR for 20 billing cycles. This gives cardholders almost two years to pay off their transfers interest-free, which can save a significant amount of money in interest charges. Additionally, there is no monthly payment required during the promotional period. This offer is available at account opening.
The U.S. Bank Visa Platinum Card is a great option for those looking for balance transfer credit cards, as it offers an introductory balance transfer offer and low balance transfer fees. With up to months of regular balance transfers, you can easily manage your account online or through mobile banking without worrying about an annual fee.
Card Features and Benefits Comparison Chart
Benchmark Card: Lower Rates for Balance Transfers
If you’re looking to transfer a balance from one credit card to another, the Citi benchmark card is the best option. With lower interest rates for balance transfers, you can save money and pay off your debt faster, resulting in potential savings. This type of card is perfect for those who have accumulated high-interest debt on another credit card and want to consolidate their balances onto one low-interest rate card. Plus, with easy account opening, you can quickly start managing your cash flow more efficiently.
The benchmark card also offers other features and benefits such as no annual fee, a rewards program, and personalized deals. By using this type of credit card, you’ll be able to take advantage of all these perks while potentially saving money on balance transfer fees. Additionally, the card offers an introductory balance transfer period of months, allowing you to transfer your regular balance and save even more in potential savings on interest charges.
Rewards Card: Personalized Deals and Bonus Rewards Rates
For those who frequently make purchases using their credit cards, a rewards card may offer potential savings. These types of cards provide personalized deals based on your spending habits and bonus reward rates for specific categories such as dining or travel. This means that every time you use your rewards card to make a purchase in these categories, you can earn more points or cash back than with a regular credit card. Additionally, some rewards cards offer bonus points or cash back upon account opening, which can help offset any potential debt from purchases made with the card.
In addition to these pros, rewards cards often come with other perks such as travel insurance, extended warranties on purchases, and access to exclusive events. If you’re someone who uses their credit card frequently and wants to earn cash points for doing so, then a rewards card may be the best choice for you to maximize savings.
Simplicity Card: No Annual Fee and Straightforward Monthly Payments
If simplicity is what you’re after then look no further than the simplicity card. This type of credit card offers no annual fee and straightforward monthly payments that are easy to understand. You won’t have to worry about complicated reward programs or hidden fees with this type of credit card. Additionally, you can enjoy 0% APR on balance transfers for the first 12 months after account opening. Plus, you can easily manage your regular balance transfers and even earn cash-back rewards.
The Simplicity card has several pros, including no balance transfer fee and savings on interest charges. Account opening is also a breeze, and you can easily transfer your balances from other credit cards. Additionally, the card offers fraud protection, free FICO score monitoring, and automatic payment options. If you’re looking for a credit card that is simple to use and understand, the simplicity card is an excellent choice.
Everyday Card: Choice Categories for Rewards and Full Review of Credit Details
For those who want more control over their rewards program, an everyday card may be the best choice. These types of cards offer choice categories for rewards such as gas, groceries, or dining. You can choose which category you want to earn bonus points or cash back in each quarter. Additionally, these cards often come with a 0% APR on balance transfers for the first month’s regular and a low-interest rate on purchases. You can also easily manage your account with a monthly payment option starting from the account opening.
In addition to these pros, everyday cards from Citi offer full reviews of your credit details including your FICO score and credit report upon account opening. This can help you stay on top of your credit health and make informed decisions about your finances. Plus, you can earn cash rewards with every purchase.
Chase Freedom Flex℠ and Chase Freedom Unlimited: Best for Rotating Bonus Categories
Rotating Bonus Categories: Chase Freedom Flex and Chase Freedom Unlimited
Chase Freedom Flex and Chase Freedom Unlimited are two of the best credit cards for earning bonus cash back through rotating categories. These cards offer a variety of bonus categories that change every quarter, allowing cardholders to earn up to 5% cash back on purchases within those categories. Both cards offer ongoing rewards for everyday purchases, making them an excellent choice for maximizing rewards. Additionally, the cards offer balance transfers with no balance transfer fee, points that can be redeemed for various rewards, and can be opened through Citi accounts.
Combined Choice Category Feature
One unique feature of these cards is the combined choice category, which allows cardholders to choose from a variety of bonus categories for maximum rewards. This means that you can select the category that you spend the most money in and earn more cashback or points on those purchases. Additionally, there is an introductory APR offer for balance transfers with no balance transfer fee within a certain period after account opening. You can also access your free credit score through the card’s online portal.
Bonus Cash Rewards
The rotating bonus categories are not the only way to earn cash rewards with these credit cards. Both Chase Freedom Flex and Chase Freedom Unlimited offer a sign-up bonus where new cardholders can earn a certain amount of cash back or points after spending a specific amount within the first few months of opening their account. There are ongoing rewards for everyday purchases such as gas stations, restaurants, and drugstores, as well as balance transfers. Additionally, Citi offers similar rewards programs for their credit cards.
Travel Rewards
For those who prefer to earn rewards towards travel expenses instead of cashback, both cards also offer travel rewards through the Chase Ultimate Rewards program. Cardholders can redeem their points for flights, hotels, rental cars, and other travel-related expenses at a higher value than just using them for cashback. Additionally, the cards provide balance transfers and free credit score intro APR. However, if you are interested in Citi purchases, these cards may not be suitable for you.
Is it Worth Getting?
If you’re looking for a credit card that offers rotating bonus categories and ongoing rewards for everyday purchases while also providing options for travel redemption, then Chase Freedom Flex or Chase Freedom Unlimited might be worth considering. With no annual fee attached to either card, it’s easy to see why they are so popular among consumers. However, keep in mind that the rotating bonus categories change every quarter, so it’s important to stay up-to-date on which categories are currently being offered to maximize your rewards. Additionally, both cards offer balance transfers with competitive rates and the ability to earn cash back or points on eligible purchases. If you’re interested in exploring other options, consider checking out Citi credit cards as well.
U.S. Bank Visa® Platinum Card and BankAmericard® Credit Card: Longest Introductory Periods for Balance Transfers
Introductory APR periods for balance transfers are a great way to save money on interest charges while paying off credit card debt. However, not all balance transfer offers are created equal, with some cards offering longer intro periods than others. Two cards that stand out in this regard are the U.S. Bank Visa® Platinum Card and the BankAmericard® Credit Card. These cards offer up to 18 months of 0% APR on balance transfers from account opening, with no annual fee. Plus, you may even be eligible for cash rewards when you use your card for purchases.
Longest Introductory Periods
The U.S. Bank Visa® Platinum Card and BankAmericard® Credit Card offer the longest introductory periods for balance transfers among major credit cards in the market today. Both cards provide an introductory APR period of up to 20 billing cycles for balance transfers, starting from account opening. This lengthy intro APR period gives cardholders ample time, up to 20 months, to pay off their balances without accruing interest charges. Plus, there is no annual fee for these cards, making them a great option for those looking to save cash.
Shorter Intro Periods for Purchases
While both cards have long introductory periods for balance transfers and purchases, their introductory APR for purchases is shorter. The U.S. Bank Visa® Platinum Card offers an intro APR of 0% for 20 billing cycles for purchases, with no annual fee. Meanwhile, the BankAmericard® Credit Card offers an intro APR of 0% for 18 billing cycles for purchases, with the option to earn cash back on purchases and no annual fee.
No Balance Transfer Fee
One advantage of both these cards is that neither charges a balance transfer fee for transfers made within the first 60 days of account opening. Additionally, they offer an introductory APR on purchases for several months, allowing cardholders to save cash on interest charges. This can be a significant saving compared to other credit cards that charge a fee ranging from 3% to 5% of the amount transferred.
Not Ideal For International Purchases
Neither card is ideal for international purchases as they charge a foreign transaction fee. However, if you’re looking to transfer a balance or need cash, the U.S. Bank Visa® Platinum Card and BankAmericard® Credit Card offer intro APRs on balance transfers and cash advances. Keep in mind that both cards have variable APRs and charge a foreign transaction fee of 2% and 3% of each transaction, respectively.
Average Balance Transfer Offer
The average length of an introductory APR period on balance transfers is around 12 months. However, the U.S. Bank Visa® Platinum Card and BankAmericard® Credit Card offer a much longer period of up to 20 billing cycles or roughly 18-19 months. Additionally, these cards do not charge an annual fee and offer cash-back rewards on purchases.
Wells Fargo Reflect® Card and Wells Fargo Active Cash® Card: Best for Cash Back Rewards
Wells Fargo has introduced two credit cards that offer the best cash-back rewards in the market, as well as benefits for balance transfers and purchases. The Wells Fargo Reflect® Card and Wells Fargo Active Cash® Card allow customers to earn cash-back rewards while also providing a variable APR balance transfer fee.
Wells Fargo Reflect® Card – 1.5% Cash Rewards and 0% Intro APR on Balance Transfers
The Wells Fargo Reflect® Card offers an excellent cash-back rate of 1.5% on purchases without any annual fee, making it a great option for those who want to earn rewards without needing to spend much. Moreover, the card also provides a 0% intro APR for 18 months on balance transfers, which is a great way to save money if you have high-interest debt on another card. Plus, you can check your free credit score regularly with this card.
If you’re already a Preferred Rewards member with Wells Fargo, you can earn up to 1.75% cash rewards with this card. Additionally, enjoy a free credit score intro APR and take advantage of balance transfers with a variable APR balance transfer fee. Plus, there’s no annual fee! This means that you can get even more value from your purchases by using this card as your primary spending tool.
Double Cash Card from Citi is another popular credit card that offers similar cashback rates as the Wells Fargo Reflect® Card. With this card, you can earn cash back on your purchases without worrying about an annual fee. However, it doesn’t come with a 0% intro APR on balance transfers as the latter does.
Navy Federal Credit Union’s Cashrewards Credit Card is another alternative that provides higher cashback rates than the Wells Fargo Reflect® Card. Military members and their families can earn cash-back rewards on purchases and balance transfers without worrying about an annual fee.
Wells Fargo Active Cash® Card – Unlimited 2% Cash Rewards and $200 Online Cash Rewards Bonus
The Wells Fargo Active Cash® Card is an excellent choice for those who want unlimited earning potential with their credit cards. It offers unlimited 2% cash rewards on all purchases, making it an ideal option for big spenders who want maximum returns. Additionally, the card offers a variable APR and balance transfer option, allowing customers to transfer balances from other cards and potentially save on interest charges. However, customers should be aware of the APR balance transfer fee before making any transfers. With these features, the Wells Fargo Active Cash® Card has got your back.
Moreover, if you apply for a new credit card and get approved, you can enjoy a free credit score check and an intro APR on credit card balances. If you use your business credit card to spend $1,000 in the first three months of opening your account, you can earn a $200 online cash rewards bonus. This is an excellent way to jumpstart your rewards earning and get more value from your purchases.
Preferred Rewards members can earn up to 2.25% cash rewards with this card, making it one of the most rewarding cash-back cards available today. As a result, if you’re already a Preferred Rewards member with Wells Fargo, this card is an excellent choice for maximizing your returns. Plus, enjoy a free credit score intro APR and take advantage of balance transfers with no balance transfer fee. Use it for purchases and get even more cash rewards.
Do Balance Transfers Hurt Your Credit Score? Explained
How do Balance Transfers Affect Your Credit Score?
Balance transfers can be a useful tool for managing credit card debt and saving cash on interest fees, but they can also have an impact on your credit score. Whether that impact is positive or negative depends largely on how you manage your new card and existing debt. Some balance transfer cards offer zero percent interest for several months, making it easier to pay off your debt without accruing additional interest charges. However, be aware that using the new card for purchases may incur fees and affect your ability to pay off the transferred balance within the promotional period.
Transferring a balance to a new card can result in a temporary dip in your credit score due to the credit inquiry and opening a new account. The inquiry will show up on your credit report, which can cause a slight decrease in your score. When you open a new account, it reduces the average age of your accounts, which can also negatively affect your score. Additionally, some cards may charge a fee for balance transfers, which can impact the amount of cash available for purchases.
However, if you make timely payments and reduce your overall debt, transferring balances to a new card may ultimately improve your credit score in the long run. By paying off high-interest debt with lower interest rates and avoiding new purchases that may incur fees, you’ll reduce the amount of interest you’re paying each month, which means more money going towards paying down principal balances.
It’s important to keep in mind that balance transfer cards often come with transfer fees that can add up quickly and offset any potential savings. These fees are typically around 3-5% of the total amount transferred. Some cards offer account credits to help offset these fees. Checking your free credit score before applying can also give you an idea of whether you’re likely to be approved with bad or fair credit. Additionally, some balance transfer cards may offer cash back on purchases or transfers, which can provide extra savings.
Why Can’t I Transfer My Balance?
There are several reasons why you may not be able to transfer a balance from one card to another, including high fees for transfers, cash advances or purchases.
- You’ve reached the limit: Most balance transfer cards have limits on how much debt you can transfer over. If you’ve already reached that limit, then you won’t be able to move any more transfers over. Additionally, be aware of any cash advance fee that may apply and take advantage of the free credit score and intro APR offers.
- You don’t qualify for most balance transfer offers if your card balances are high or you have not made timely payments. To qualify for the best transfers, you need a preferred card with good or excellent credit scores (typically 670 or higher). Additionally, there may be a fee associated with the transfer.
- You’re attempting to make a balance transfer: Some credit card issuers may not allow transfers of balances from one of their cards to another, especially if there is a cash advance or balance transfer fee involved. Additionally, if you have made recent purchases on the card you are trying to transfer the balance from, this could also impact your ability to make the transfer. Be aware that if you are trying to move debt from one card to another with the same issuer, they may not allow it.
What is a Balance Transfer Fee?
A balance transfer fee is a fee charged by credit card companies when you transfer your outstanding balance from one credit card to another. The fee is usually a percentage of the amount transferred and can range anywhere from 3-5% of the total amount. This fee does not apply to cash transfers, purchases, or cash back.
While balance transfers may seem like an additional expense, they can still save you cash in interest charges over time. For example, if you have $10,000 in credit card debt with an interest rate of 18%, transferring that balance to a new card with a 0% APR for 12 months and a 3% balance transfer fee would cost you $300 upfront but save you $1,800 in interest charges over that year. Additionally, the new card may offer cash-back rewards on purchases.
Choosing the Right Balance Transfer Card
Now that you have a comprehensive understanding of the best balance transfer cards available for transfers, it’s time to choose the right one for your financial goals. The first step is to evaluate your current credit card debt and determine how much you can realistically pay off within the introductory period. If you have a large amount of debt, consider cards with longer introductory periods and lower balance transfer fees. Additionally, some cards offer cash-back rewards on purchases, so be sure to look for those as well.
Next, consider your credit and spending habits, as well as your reward preferences. If you plan to transfer a balance, be mindful of the balance transfer fee and look for cards with intro APR offers. For example, Chase Freedom Flex℠ or Chase Freedom Unlimited may be a good fit for rotating bonus categories, while Wells Fargo Reflect® Card or Wells Fargo Active Cash® Card could be suitable for cash-back rewards.
If your primary goal is to pay off debt as quickly as possible without accruing additional interest charges, U.S. Bank Visa® Platinum Card or BankAmericard® Credit Card offers some of the longest introductory periods available for balance transfers. However, keep in mind that a balance transfer fee may apply. Additionally, these cards may not be the best option for cash advances or purchases.
Lastly, consider any additional card features and benefits that may align with your needs. For example, if you’re looking to earn cash back on purchases, consider a card with a rewards program. If you have an existing balance on another card, look for a card with a low or 0% intro APR on balance transfers. Some cards also offer free credit score monitoring as a benefit.
Remember to read all terms and conditions carefully before applying for a credit balance transfer card. Pay attention to any annual fees or penalty APRs that may apply after the introductory period ends. Also, make sure to check if the card allows transfers of cash and purchases.
