Best Balance Transfer Credit Cards in October 2022
The best balance transfer cards help you save money in interest charges through intro 0% APR offers. However, keep in mind that you will need to pay balance transfer fees.
Balance transfer cards are a valuable tool for paying off credit card debt. And Americans know a thing or two about credit card debt. They accounted for $756 billion in credit card debt in 2020 -- the average credit card balance during that time was $5,315. And with the average annual percentage rate (APR) being 16.28% in Q4 2020, a credit card with a low balance transfer offer could be a good option for people who carry a credit card balance month to month. Expensive interest charges make it difficult to climb out of debt.
How Balance Transfer Cards Can Help You
MoneyGeek’s Take: Top 9 Balance Transfer Credit Cards
The duration of the intro 0% APR offers on balance transfers is not the same across all the top balance transfer cards we've selected. For instance, the Citi Diamond Preferred Card comes with a 0% APR offer on balance transfers for 21 months, whereas the Wells Fargo Active Cash Card offers 0% APR on balance transfers for 15 months. Selecting a card that works well for you also requires paying attention to other aspects such as welcome offers, annual fees and added benefits.
Below are some of the best balance transfer card offers available currently. Each listing features insights into the offer, including pros and cons and an expert editorial review of the card. Use this information to guide you when choosing the right balance transfer offer for you. Some balance transfer periods extend into 2022, which could help pay down debt easier or future budget planning.
Best Credit Cards with Longer Balance Transfer Periods
Opting for a balance transfer card with a longer introductory offer allows you time to form a plan for paying off existing credit card debt. It helps with budgeting since you have more time to make payments on the balance.
Citi® Diamond Preferred® Card
Best balance transfer card for immediate transfers
ExcellentCredit Needed
0% APR on new purchasesAPR Offer
12 monthsAPR Offer Duration
0% Intro APR on balance transfersBalance Transfer Offer
14.74%–24.74%APR
Citi® Diamond Preferred® Card is an effective balance transfer solution. A 0% APR applies on balance transfers for 21 months, from the date of the first transfer. The card also comes with a 0% APR offer on purchases for 12 months.
Afterward, you’ll face a variable APR based on your credit score. This basic card limits your ability to make use of the balance transfer offer after four months, so you’ll need to use this card quickly to take advantage of its benefits.
With that in mind, this can be a fantastic balance transfer card if you have a specific financial goal in mind and if you want to benefit from Citi’s other deal-sweeteners, including special tickets to events like concerts or dining experiences and free FICO score access.
All told, this simple balance transfer card is quick to grasp and easy to use to its full extent, making it a particularly good choice for cardholders that don’t like a lot of complex rules or bells and whistles.
Pros
Long 0% APR introductory term
No annual fees
Free access to FICO score online
Special access to Citi-branded tickets to events, etc.
Cons
Limited time to make balance transfers
No other significant rewards
Balance transfer fee of 5% of each amount transferred or $5 minimum, whichever is greater
0% APR on balance transfers for 21 months and 0% APR on purchases for 12 months, then a variable APR of between 13.74% and 23.74% based on your credit
Enjoy Citi Entertainment rewards and tickets upon making your account
Free FICO score access can be found through your online account’s portal
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
The Citi Simplicity® Card might work well for people who’re looking for balance transfer cards with no annual fees. This card comes with a 0% APR offer on balance transfers for 21 months. However, you need to complete your balance transfer within the first four months, and you need to pay a 5% balance transfer fee. An intro 0% APR offer also applies on purchases for 12 months.
If you get the Citi Simplicity® Card, you may choose your own due date. You may also benefit through Citi Identity Theft Solutions and $0 liability on unauthorized charges
This card comes with foreign transaction fees and cash advance fees. It is one of the few cards you may find that charge no late payment fees. However, returned payments attract fees.
Pros
No annual fee
Long 0% APR introductory offer
Citi perks
No penalty rate
No late fees
Cons
3% foreign transaction fee
No rewards
You need to pay a fee of either $5 or 5% of the amount of each credit card balance transfer, whichever is greater.
You can have a flexible payment due date that can adjust to your unique situation.
0% intro APR for purchases for 12 months and 0% intro APR for 21 months on balance transfers.
No annual fees.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best balance transfer credit card for short-term debt repayment
Good-ExcellentCredit Needed
0% APR on new purchasesAPR Offer
20 monthsAPR Offer Duration
0% Intro APR on balance transfersBalance Transfer Offer
14.49%–24.49%APR
The U.S. Bank Visa® Platinum Card is an excellent option for people who wish to pay no interest on purchases and balance transfers for an extended duration because this card's 0% APR offer stays in place for the first 20 months. After the intro period, a creditworthiness-based interest rate applies.
You pay no annual fees for the life of the card. You may use its complimentary cell phone protection in case you lose or damage your phone. Fraud protection safeguards you against possible misuse of your card.
If you're looking for a card to pay off high-interest credit card debt through a balance transfer within 20 months, this card might work well for you.
Pros
No annual fee to increase your expenses
Excellent intro APR period for purchases and balance transfers
Comes with cell phone insurance
Flexible bill payment dates
Cons
Foreign transaction and cash advance fees
No rewards
0% APR for 20 months after account opening applies on purchases and balance transfers
Variable 14.49%–24.49% APR after the introductory period
Balance transfer fee is 3% of the transfer amount or $5 minimum, whichever is greater
Up to $600 cell phone protection against theft or damage, provided you pay your monthly cellular bill with this card
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no-annual-fee card that offers up to 2% cash back
ExcellentCredit Needed
$0Annual Fee
2% Cash Back*Rewards Rate
2xRewards Rate on Gas
2xRewards Rate on Groceries
We think the Citi® Double Cash Card is a great no-annual-fee card because it lets you earn an unlimited 2% cash back on purchases across all categories. You'll receive 1% on your purchases and 1% when you pay down your balance. You may redeem your cash back in the form of a statement credit, a direct deposit, a check or even by converting it to points.
You may look forward to savings by using the card's 0% intro APR offer on balance transfers for 18 months if you wish to pay off existing balances from high-interest cards.
Features such as 24-hour fraud protection, identity theft solutions, $0 liability on unauthorized charges and the lost wallet service are in place to safeguard cardholders' interests.
All cardholders get access to Citi Entertainment, through which they may purchase presale tickets.
Pros
Pay no annual fees
Pay 0% APR on balance transfers for the first 18 months
Earn up to 2% cash back on purchases across all categories
No caps on earning cash back
Options to redeem cash back rewards include a statement credit, direct deposit, check or conversion to points
Purchase tickets to scores of events, including presale tickets, through Citi Entertainment
Increased account safety through 24-hour fraud protection and $0 liability on unauthorized charges
Complimentary Lost Wallet service and identity theft solutions
Cons
Cash back rewards expire if you do not earn any cash back from purchases or payments for those purchases in a 12-month period
Foreign transaction fees
Cash advance fees
Balance transfer fees
Penalty APR applies in case of late and returned payments
$0 annual fees
Intro 0% APR offer on balance transfers for the first 18 months
2% unlimited cash back on purchases - 1% on purchases and 1% on payments
Redeem cash back rewards as a statement credit, a check or a direct deposit
Converting cash back rewards to Thank You points may provide even greater value when transferring to airline or hotel partners
Get access to presale tickets via Citi Entertainment
24-hour fraud protection, $0 liability on unauthorized charges and identity theft solutions provide added peace of mind
Get emergency cash through the Lost Wallet service
Foreign transaction fees apply on international transactions
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A good no annual fee card with a 0% intro APR offer
Fair-ExcellentCredit Needed
$0Annual Fee
14.99% - 23.74%APR
18 monthsBalance Transfer Duration
18 monthsAPR Offer Duration
We recommend the Chase Slate Edge℠ to people who are looking for cards with intro 0% APR offers that don’t charge annual fees. This card’s 0% APR offer applies on purchases and balance transfers for the first 18 months. However, balance transfers come with fees.
The Chase Slate Edge℠ lets you break up purchases of $100 or more into equal monthly payments through the My Chase Plan. If your purchases qualify for this plan, you pay a fixed monthly fee and no interest.
Depending on your card’s initial APR, you might qualify for an APR reduction of up to 2% when you make timely payments and spend at least $1,000 on purchases by your next account anniversary.
Additional benefits come in the form of automatic reviews for a higher credit limit, free access to your credit score, purchase protection, extended warranty protection, auto rental collision damage waiver and roadside dispatch.
Using this card outside of the U.S. might not work well for you, given its 3% foreign transaction fee.
Pros
Long introductory APR period for both purchases and balance transfers
No annual fee
Annual APR reduction with good usage
Automatic credit line increase with responsible usage
Cons
Foreign transaction fee
No rewards program
0% APR for 18 months from account opening on purchases and balance transfers
Balance transfer fee of 3% of the amount of each transfer or $5 minimum for the first 60 days of account opening, then 5% or $5 of the amount of each transfer, whichever is greater
Purchase and travel protections
Auto rental collision damage waiver
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A few balance transfer cards offer more than a break from interest charges. Some cards come with extra perks and benefits similar to those found with top rewards credit cards. Card perks may include travel benefits, purchase protections, loyalty rewards and more.
Wells Fargo Reflect® Card
A good no annual fee card with a lengthy 0% APR offer
Good-ExcellentCredit Needed
$0Annual Fee
18 monthsBalance Transfer Duration
18 monthsAPR Offer Duration
We recommend the Wells Fargo Reflect® Card to people who’re looking for 0% APR cards with no annual fees. This card comes with a 0% intro APR for 18 months on purchases and balance transfers. In addition, if you make on-time payments, you may qualify for an extension of up to three more months.
If you wish to qualify for the intro rate offer on balance transfers, you need to carry out the desired transfers within 120 days from account opening. In this case, a balance transfer fee of $5 or 3% of the transferred amount (greater of the two) will apply. For transfers initiated after the 120-day period, the fee changes to $5 or 5% of the transferred amount.
All cardholders get complimentary cell phone insurance and access to 24/7 emergency roadside assistance. If you plan to use your card outside of the U.S., you’ll need to pay a 3% foreign transaction fee.
Pros
No annual fee
Up to $600 cell phone protection for eligible theft or damage
0% introductory APR on new purchases and balance transfers
Opportunity to extend intro APR period with timely payments
Zero liability protection
Competitive variable APR
Cons
No rewards program or welcome bonus
Foreign transaction fee of 3%
Balance transfer fee increases from 3% to 5% after 120 days
Intro APR may lapse if you don't make on-time payments
0% APR offer on purchases and balance transfers for up to 21 months
No annual fee
$600 cell phone protection available for those who pay their monthly cell phone bill with this card
Cash back is available in the form of statement credit through My Wells Fargo Deals
24/7 on-demand roadside dispatch network that offers roadside assistance, locksmith services and towing
$40 late fee
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no-annual-fee card that lets you earn unlimited cash back
ExcellentCredit Needed
$0Annual Fee
1.5–5% Cash BackRewards Rate
3xRewards Rate on Dining
5xRewards Rate on Air Travel
We're in love with the Chase Freedom Unlimited card because it comes with no annual fee and gives you the ability to earn unlimited rewards. Depending on your spending habits, you stand to earn up to 5% cash back on your purchases. Another plus is that the cash back rewards you earn don't expire for the life of the card.
An intro 0% APR on purchases for the first 15 months enables you to make big-ticket purchases without having to pay interest — provided you repay the entire amount during the intro period. Cardholders can also eliminate interest on existing debt with a balance transfer. You'll enjoy 15 months with no interest to pay off your transferred balances After the promo period expires, you might benefit by getting a low ongoing rate depending on your credit score.
Complimentary purchase and travel protection might come in handy in various scenarios, such as if you miss your flight or an item is damaged or stolen after you buy it.
If you use Lyft to get around, you stand to benefit even more — by earning 5% cash back until March 2022.
Pros
No annual fees
0% APR on purchases for 15 months from account opening
Intro bonus cash back offer
Earn 5% cash back on travel purchases
Earn 3% cash back on dining-related purchases
Earn 3% cash back on drugstore purchases
Earn 1.5% cash back on all other purchases
You may earn unlimited cash back that never expires
Redeem rewards for cash back, for gift cards, for travel or through Amazon.com
Get complimentary purchase and travel coverage
Cons
Foreign transaction fees
Cash advance and balance transfer fees
Penalty APR may apply in case of late and returned payments
Pay $0 annual fee for the life of your card
Pay no interest on purchases and balance transfers for the first 15 months
Travel purchases through Chase Ultimate Rewards earn 5% cash back
For the first year, earn 5% cash back at gas stations (on up to $6,000 in purchases)
Spending at restaurants, on takeout and through other eligible delivery services, as well as drugstore purchases, earn 3% cash back
All other purchases earn 1.5% cash back
You get to earn unlimited cash back rewards, and they don't expire as long as your account remains active
Different ways to redeem your cash back include receiving a statement credit, withdrawing it through a direct deposit, using it to get gift cards or using it to pay for travel
Zero liability protection, 24/7 fraud protection, purchase protection and extended warranty protection are in place to provide extra peace of mind
Feel better when traveling by knowing that you have access to travel and emergency assistance services, trip cancellation/interruption insurance and auto rental collision damage coverage.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An easy-to-use cash back card with quarterly rotating bonus categories
Good-ExcellentCredit Needed
$0Annual Fee
1–5% Cash Back*Rewards Rate
5xRewards Rate on Air Travel
3xRewards Rate on Dining
We recommended the Chase Freedom Flex℠ to people who wish to earn high category-based cash back without paying an annual fee. You get 5% cash back on combined purchases of up to $1,500 in bonus categories you activate every quarter and on travel purchased through Chase Ultimate Rewards. You get 3% cash back on multiple bonus categories. You also get higher-than-usual cash back at gas stations during the first year.
This card comes with an introductory APR applies on purchases and balance transfers. However, if you use this card to transfer a balance, you need to pay a balance transfer fee. This card also comes with foreign transaction fees.
Some of the additional benefits come in the form of purchase protection, extended warranty, cell phone protection, trip cancellation/interruption insurance and auto rental collision damage waiver.
Pros
Generous welcome offer
Rotating cash back bonus categories
No annual fee
Excellent customer-facing features
Grocery store perks
DoorDash and Lyft benefits
Cons
Modest base cash back rate
Your interests might not align with quarterly rotating bonus categories
Foreign transaction fees
5% cash back on quarterly rotating bonus categories
5% cash back on Chase Ultimate Rewards travel purchases
3% cash back on dining, takeout, delivery and drug store purchases
1% cash back on all other purchases
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A great no annual fee cash back card with a 0% APR offer
Good-ExcellentCredit Needed
$0Annual Fee
2% Cash BackRewards Rate
2xRewards Rate on Gas
2xRewards Rate on Groceries
We think the Wells Fargo Active Cash® Card might work well you if you wish to earn cash back and pay no annual fee. As a new cardholder, you may earn a $200 cash rewards bonus if you spend $1,000 on purchases during the first three months. This card also comes with a 0% APR offer for 15 months on purchases and balance transfers.
The Wells Fargo Active Cash® Card offers 2% cash back on all purchases. You may use the cash back you earn to offset eligible purchases, you may redeem it as a credit to an existing Wells Fargo credit card, checking or mortgage account, you may redeem it through ATMs or you may use it to purchase gift cards.
Additional benefits come in the form of cell phone protection and access to a 24/7 concierge service as well as the Visa Signature Hotel Collection. Using this card outside of the U.S. might not work well for you, given its 3% foreign transaction fee.
Pros
2% cash back rewards on all spending
Unlimited cash back rewards that don't expire
No annual fee
0% intro APR on purchases and balance transfers for 15 months
$200 welcome bonus after spending $1,000 on purchases within three months from account opening
Access to Visa Concierge and Visa Signature Luxury Hotel Collection
Cons
3% foreign transaction fee
Balance transfer fees
Limitations on welcome bonus eligibility
No annual fee
2% cash back on all purchases
Redeem cash back as a statement credit, a direct deposit to a Wells Fargo account, or a mailed check
Spend $1,000 within three months from account opening to earn a $200 welcome bonus
Enjoy 0% APR on purchases and balance transfers for first 15 months
3% foreign transaction fee
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Experts at MoneyGeek use 57 data points and our unique in-house ranking methodology to arrive at the list of the best balance transfer cards. They get the information they need from the Consumer Finance Protection Bureau, issuer websites and our partners to ensure all information is complete, accurate and comprehensive. Then, they assign specific values to different parameters based on their importance. For example:
Duration of intro APR offer: 75%
Balance transfer APR: 10%
Welcome offer: 10%
Regular APR: 5%
How to Compare Different 0% APR Balance Transfer Offers
While they may offer other benefits, by and large, balance transfer cards are created for one thing — to help people pay off credit card balances. Here are several factors to consider as you think about which card is right for you.
1
Introductory offer period
The introductory 0% APR offer determines how long you have to pay off your transferred balance before you’re hit with interest charges again. Offer lengths range from six months to 20 months. If you’re transferring a large balance or are working with a tight budget, you’re better off with a longer promotional period. Some cards offer 0% APR on new purchases too. While that seems like an extra perk, adding new purchases increases your balance, possibly making it even more challenging to pay off.
2
Balance transfer fees
Most credit card companies charge a fee for allowing you to transfer a balance over to your newly approved credit card. Typically you’ll pay either a flat fee or a percentage of the transferred balance, whichever is greater. There may also be a minimum balance transfer fee. Always calculate how much your fee is compared to the interest charges you’re currently paying before transferring over a balance.
3
Balance transfer limits
In many cases, balance transfer cards have set limits to how much you can transfer over. It’s important to pay attention to the limit so that you can find a card that allows you to transfer over your entire existing balance.
4
Late payments
Your promotional APR rate could be affected or ended with a late payment. You could also face a late payment fee or penalty APR on your balance or future purchases. The last thing you want to do is transfer over your balance and then lose out on the purpose for signing up for the card in the first place.
5
Regular APR
Once the introductory period ends, your remaining balance is subject to interest charges and, possibly, fees. This is known as your regular APR. In many cases, the regular APR is the same for balance transfers and new purchases.
6
Other fees
The best balance transfer credit cards come with no annual fees, but there are additional fees to keep in mind when choosing a card. If you plan to use the card when traveling, you might want to find a card with no foreign transaction fees. Other fees to watch for include late fees, returned payment fees and cash advance fees.
7
Card benefits
A balance transfer card may come with added benefits like travel perks or purchase and fraud protection. Extra perks increase the card’s value, but they shouldn’t take priority over more important factors like the offer length and transfer fees.
8
Your credit score
For the most part, your credit score will determine which balance cards you qualify for. Most balance transfer cards require good or excellent credit. Only apply for cards when there’s a good chance of approval since each application requires a hard credit inquiry, which can lower your credit score.
MoneyGeek’s Quick Guide to Understanding Balance Transfers
Paying off debt is a great feeling, which is why a balance transfer card is such a powerful tool. It can jump-start your debt payoff plan. Plus, it allows you to consolidate your credit cards into one monthly bill. Not everyone is a good fit for a balance transfer card, though. There are certain nuances to balance transfer cards that you should know before deciding to apply for a card.
MONEYGEEK QUICK TIP:
Though the U.S. economy is slowly recovering from the pandemic, credit card issuers are still being cautious on how they extend credit. This is why you may see fewer balance transfer offers than you did pre-COVID. Don't fret - the MoneyGeek team was still able to find solid balance transfer cards to compare, but if you don't find what you're looking for, we recommend comparing credit cards with 0% APR intro offers.
How Balance Transfer Credit Cards Work
Balance transfer cards allow you to transfer over existing credit card balances from other credit cards to your new card. Do the math to verify that the offer is worth any fees incurred.
Once you’re approved for your balance transfer card, you are ready to transfer a credit card balance. Here’s how the process works:
1
Request a transfer
Contact your new credit card issuer to request to transfer over an existing balance from another card. You can do that by calling the customer service number on the back of your card. Your card issuer may allow you to request transfers online or through its mobile app too. You will be asked for specific information about the debt you are transferring, like the account number and balance amount. Depending on card limits, you could get approved for transferring all or a portion of the existing balance.
2
Continue making payments on the old card
Balance transfers take time to be approved and processed. The process can potentially take weeks to be finalized. Continue to make minimum payments on your old card until the balance has been moved to the new card. Failure to make payments on the old card before that time could result in costly late payments.
3
Plan your debt payoff
Once the balance is moved over to the new card, make a plan to pay it off within the introductory period. Divide the total transferred balance by the promotional period’s length to determine how much you need to pay each month. If you make purchases on the new card during that time, you’ll need to factor them into your calculations too. You can also make extra payments to pay off the debt even faster.
Depending on the card issuer, you may be able to transfer over other debt balances besides credit cards, like auto loans, student loans and personal loans. Check with the card issuer or read through the card’s terms and conditions to determine what types of debt they allow to be transferred to a credit card. Most card issuers only allow you to move over balances on cards issued by other credit card companies.
Who Should Consider a Balance Transfer
Balance transfers are best for individuals with high-interest debt who have good enough credit to qualify for a 0% interest balance transfer card. They are also great for those who need extended time to pay off their balance.
A balance transfer might not be the best option for individuals with low balances on existing cards or those with poor credit. Avoid balance transfers if you have no intention of paying off your balance.
Credit Card Balance Transfer Best Practices
Transferring a balance can save you money and help you pay off debt quicker. There are steps you can take to ensure a balance transfer accomplishes its intended goal.
MONEYGEEK EXPERT TIP
Pay attention to the card details: Always read through the terms and conditions before applying for a new credit card. Pay attention to things like the fee structure, what happens after the introductory period ends and more.
Create a plan to pay off the balance: Determine how much money you need to pay each month to pay off the entire balance before the end of the promotional period. This may require paying more than the minimum payment.
Avoid late fees: Do whatever is necessary to keep from making payments late. Try paying your monthly bill early to ensure your payment goes through correctly.
Avoid new purchases: The goal of the balance transfer card is to pay down debt. Each time you make new purchases, it extends the time and money necessary to pay the total balance.
Alternatives to Balance Transfers
Balance transfers can help you pay down debt quickly, but they aren’t suitable for everyone. If they’re not an option for you, there are other ways to handle debt payoff.
Personal loan: You may qualify for a personal loan with a lower interest rate than your credit card, saving you money in interest charges. Also, personal loans typically offer longer payment terms than an introductory period.
Debt payoff plan: You could keep your balance on the existing card and develop a plan to pay off your debt. One method for paying off debt is called the debt avalanche method. With a debt avalanche, you find the card with the highest interest rate and work like crazy to pay it off, making minimum payments on all other cards. Once it's paid off, move on to the card with the next highest interest.
FAQs About Transferring Credit Card Balances
There are important details you should know if you’re thinking about transferring an existing credit card balance.
Your old credit card is still open after you transfer the balance. You can choose to close the card if no longer needed. Keeping older accounts open is good for your credit score, though. It still holds value, especially if it carries no annual fee.
The amount you will save through a balance transfer depends on your balance amount, the old card’s interest rate and the length of the introductory APR offer. For example, let’s say you transferred a $3,500 balance to a new card with an 18-month introductory offer and a 3% transfer fee. You would pay off the entire balance in 15 months by making $250 monthly payments and only paying $105 in fees. If your old card charged 14.99% APR and made the same $415 monthly payments, it would take you 16 months to pay off the $3,500 balance, and you would pay $322 in interest.
Some card issuers allow you to transfer balances through your online account or their mobile app. Others require you to call the customer service number located on the back of your card to initiate the transfer.
Balance transfers can take up to several weeks to be processed. Bank of America, for example, takes up to two weeks to process balance transfer requests for the BankAmericard Credit Card.
The amount you can transfer depends on the limit set by the card issuer. You can’t transfer a balance larger than the card’s limit, so you may only receive a partial transfer up to the limit.
You cannot literally transfer your credit card balance to a mortgage or a personal loan. However, if you get a home equity loan, you may use proceeds from the same to pay off your credit card balances. This also applies to funds you receive through a personal loan. If you have multiple high-interest credit card debts, you may consider taking a look at what debt consolidation loans have to offer. These loans let you combine multiple debts into a single one.
Some credit cards offer 0% APR offers on balance transfers for new cardholders. If you pay off your transferred balance within a stipulated time period – usually 12 to 20 months – you pay no interest. However, outstanding balances start accruing interest from the date the promo period ends.
Generally, there’s no limit to the number of transfers you can do on one card as long as you stay under the transfer limit. But some card issuers may limit the number of transfers, so always check before applying for a new card. Keep in mind that transfers made outside of the introductory period won’t receive 0% APR.
Balance transfers don’t hurt your credit score. As you pay off your balance, your credit utilization goes down, which can help your score. Opening a new credit card, though, can drop your score temporarily. The amount of new credit you have factors into your score and your credit age, which drops each time you open a new card.
If you still have an outstanding balance towards the end of the introductory period, you can transfer the balance to another card, make a lump sum payment at the end to avoid interest charges or keep the remaining balance and pay interest on it.
Yes, business card transfers work the same as with personal credit cards. You can also transfer over a balance from a personal credit card to a business balance transfer card in many cases. A small business owner who used personal cards to launch a business is a perfect candidate for this transfer type.
Yes, you can transfer only a portion of your existing card balance. The remaining balance will still accumulate interest charges until it’s paid off.
Whether a loan or balance transfer card is better to pay off debt depends on your specific needs and factors like interest rates, the amount of debt you have and how long you require to pay it off.
Balance transfer credit cards help you pay off existing debt without the burden of monthly interest fees. Research whether it makes sense to transfer the balance or not. If so, take the time to compare the best balance transfer credit cards to determine the right card for you.
Next Steps
Now that you know what to expect from the best balance transfer cards, consider your specific requirements before making a selection. In addition, don't forget to pay attention to aspects such as the duration of the intro APR offer, annual fees, balance transfer fees, regular APRs and added perks.
How can balance transfers impact your credit score short and long term?
What are one or two common mental mistakes people make when they do a balance transfer, and what can you do to avoid them?
Kathryn Kelley, CFP®, CLTC®
Financial Advisor at Sale Financial Group
About the Author
Kevin Payne is a personal finance writer specializing in credit cards, banking, and student loans. He is a regular contributor to Forbes Advisor, The Ascent, Investing Answers, and Student Loan Planner. Kevin is the budget and family travel expert behind FamilyMoneyAdventure.com.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available. Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.
