Are you burdened by high-interest credit card debt? A balance transfer credit card can be a powerful tool to consolidate your debt and potentially save hundreds or even thousands of dollars in interest. By transferring your existing balances to a new card with a 0% introductory APR, you can focus on paying down the principal without the added weight of interest charges during the promotional period. This guide will help you navigate the world of balance transfer cards and find the best option to suit your financial needs.
| Card Name | Key Benefits | Important Considerations |
|---|---|---|
| Wells Fargo Reflect® Card | Longest 0% intro APR period (up to 21 months), no annual fee. | Requires excellent credit, balance transfer fee (3% intro for 120 days from account opening, then up to 5%, min $5). |
| Citi Simplicity® Card | Long 0% intro APR period (21 months), no late fees, no annual fee. | Requires good to excellent credit, balance transfer fee (5% of each balance transfer; $5 minimum). |
| Discover it® Chrome | 0% intro APR for 15 months, rewards on gas and restaurants, no annual fee. | Requires good to excellent credit, balance transfer fee (3% intro balance transfer fee; up to 5% fee on future balance transfers (see terms)). |
| Chase Freedom Unlimited® | 0% intro APR for 15 months, rewards on all purchases, no annual fee. | Requires good to excellent credit, balance transfer fee (5% of the amount transferred or $5, whichever is greater). |
| U.S. Bank Visa® Platinum Card | Long 0% intro APR period (18 billing cycles), no annual fee. | Requires good to excellent credit, balance transfer fee (3% of the amount transferred or $5, whichever is greater). |
| American Express Blue Cash Everyday® Card | 0% intro APR for 15 months, cash back rewards on everyday spending, no annual fee. | Requires good to excellent credit, balance transfer fee ($5 or 3% of the amount of each transfer, whichever is greater). |
| Capital One Quicksilver Cash Rewards Credit Card | 0% intro APR for 15 months, simple cash back rewards, no annual fee. | Requires good to excellent credit, balance transfer fee (3% of the amount transferred at a promotional APR that Capital One may offer). |
| Bank of America® Customized Cash Rewards credit card | 0% Intro APR for 15 billing cycles, customized cash rewards, no annual fee. | Requires good to excellent credit, balance transfer fee (3% of the amount transferred, minimum $10). |
| Fifth Third Bank Truly Simple® Credit Card | 0% intro APR for 15 months on purchases and balance transfers, no annual fee. | Requires good to excellent credit, balance transfer fee (3% of the amount transferred, minimum $5). |
| First Tech Choice Rewards World Mastercard® | Lower balance transfer fee (1%), rewards program, no annual fee. | Requires credit union membership and good to excellent credit. Balance transfer fee is 1% of the amount transferred (up to $250). |
Detailed Explanations
Wells Fargo Reflect® Card
The Wells Fargo Reflect® Card stands out due to its exceptionally long 0% introductory APR period. This extended period allows you more time to pay down your balance without accruing interest. The card also has no annual fee, making it a cost-effective option. Keep in mind the balance transfer fee and the credit score requirements.
Citi Simplicity® Card
The Citi Simplicity® Card is another excellent choice for those seeking a long introductory 0% APR period. A unique feature of this card is the lack of late fees, which can be helpful if you occasionally miss a payment due date. However, the balance transfer fee is a standard percentage of the transferred amount.
Discover it® Chrome
The Discover it® Chrome card offers a 0% introductory APR period along with rewards on gas and restaurant purchases. This makes it a good option if you want to earn rewards while paying down your debt. Discover is also known for its customer service.
Chase Freedom Unlimited®
The Chase Freedom Unlimited® card provides a 0% introductory APR period coupled with a valuable rewards program on all purchases. This card is a strong contender if you want to earn rewards while consolidating your debt. However, like other cards, it requires a good to excellent credit score.
U.S. Bank Visa® Platinum Card
The U.S. Bank Visa® Platinum Card is primarily focused on providing a long 0% introductory APR period. It lacks the rewards programs of some other cards but is a solid option for those solely focused on debt consolidation.
American Express Blue Cash Everyday® Card
The American Express Blue Cash Everyday® Card offers a 0% intro APR period and cash back rewards on everyday spending categories like groceries, gas, and department stores. This card provides a good balance between debt consolidation and earning rewards.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card provides a straightforward cash back rewards program on all purchases, along with a 0% introductory APR period. The simplicity of the rewards structure makes it an appealing choice for many.
Bank of America® Customized Cash Rewards credit card
The Bank of America® Customized Cash Rewards credit card allows you to choose a cash back category that suits your spending habits, adding a personalized touch to your rewards program. It also features a 0% introductory APR period.
Fifth Third Bank Truly Simple® Credit Card
The Fifth Third Bank Truly Simple® Credit Card offers a 0% introductory APR on both purchases and balance transfers, making it a versatile option. It also has no annual fee.
First Tech Choice Rewards World Mastercard®
The First Tech Choice Rewards World Mastercard® stands out with its lower balance transfer fee compared to many other cards. This can save you money upfront. However, it requires membership in the First Tech Federal Credit Union.
Frequently Asked Questions
What is a balance transfer?
A balance transfer is the process of moving debt from one or more credit cards to a new credit card, often with a lower interest rate.
What is an introductory APR?
An introductory APR is a temporary, often 0%, interest rate offered on a new credit card for a limited time.
What is a balance transfer fee?
A balance transfer fee is a charge applied by the new credit card issuer for transferring your existing debt.
How do I choose the best balance transfer card?
Consider the length of the 0% intro APR period, the balance transfer fee, your credit score, and any rewards programs offered.
What credit score do I need for a balance transfer card?
Most balance transfer cards require a good to excellent credit score (670 or higher).
Can I transfer a balance from one card to another from the same bank?
Generally, you cannot transfer a balance between two cards from the same bank.
What happens after the introductory APR period ends?
After the introductory period ends, the APR will increase to the standard purchase APR, which can be significantly higher.
How much can I transfer?
The amount you can transfer is limited by your credit limit on the new card, minus the balance transfer fee.
Is it worth it to pay a balance transfer fee?
It depends on the amount of debt you're transferring and the interest you'll save. Calculate the potential savings to see if it outweighs the fee.
When should I apply for a balance transfer card?
Apply when you have a significant amount of high-interest debt and a plan to pay it off within the introductory period.
Conclusion
Choosing the best balance transfer card requires careful consideration of your individual financial situation and goals. By comparing introductory APR periods, balance transfer fees, and rewards programs, you can find a card that helps you effectively consolidate your debt and save money on interest. Remember to create a repayment plan to maximize the benefits of the 0% introductory APR period.