Carrying high-interest credit card debt can feel like climbing a mountain with a backpack full of rocks. The weight drags you down, and every step forward seems impossibly hard. But fear not, weary trekker! Balance transfer credit cards can be your trusty Sherpa, offering a much-needed break from the usurious interest rates and a clear path to financial freedom.
This July 2024 guide equips you with the knowledge to choose the best balance transfer credit card for your unique situation. We’ll explore:
- Key considerations: factors to ponder before embarking on your balance transfer journey.
- Top contenders: a detailed analysis of the best balance transfer cards across various categories.
- Hidden costs and fine print: understanding the potential pitfalls to avoid.
- Pro tips for success: strategies to maximize your balance transfer and conquer your debt.
Before You Transfer: Crucial Considerations
Jumping into a balance transfer without planning is like sprinting into a maze blindfolded. Here’s what to evaluate before making your move:
- Credit score: Most balance transfer cards require good or excellent credit (740+). Check your score and consider rebuilding it if necessary.
- Balance size: Ensure the card’s transfer limit accommodates your debt. Remember, exceeding the limit often means no 0% intro APR.
- Transfer fees: Most cards charge 3-5% of the transferred amount, adding to your debt. Factor this into your calculations.
- Intro APR duration: Aim for the longest possible 0% intro period (ideally 21 months+) to give yourself ample payoff time.
- Regular APR: Pay attention to the interest rate that kicks in after the intro period ends. Aim for a rate below your current card’s APR.
- Rewards: Some cards offer cash back or travel rewards on purchases, but prioritize low fees and long intro periods first.
Top Contenders in the Balance Transfer Arena
Now, let’s meet the champions in different balance transfer categories:
Longest Intro APR:
- Citi® Diamond Preferred® Card: Boasts a whopping 21 months of 0% intro APR on both balance transfers and purchases, ideal for large debts.
- U.S. Bank Visa® Platinum Card: Offers a 20-month 0% intro APR on both transfers and purchases, with no annual fee, making it a simple and budget-friendly option.
Best for Cash Back:
- Discover it® Balance Transfer: Entices with a 0% intro APR for 18 months on transfers and earns 5% cash back on rotating categories in the first year.
- Citi Double Cash® Card: Features a 15-month 0% intro APR on transfers and earns a flat-rate 2% cash back on all purchases.
No Late Fee Forgiveness:
- Citi Simplicity® Card: Offers a 0% intro APR for 15 months on transfers and provides one-time late fee forgiveness, perfect for forgetful folks.
Additional Options:
- Wells Fargo Reflect® Card: Impresses with 0% intro APR for 18 months on transfers and purchases, plus cellphone protection.
- Bank of America® Customized Cash Rewards credit card: Provides a 0% intro APR for 18 months on transfers and allows customizing cash back categories.
Beware the Caveats: Understanding the Fine Print
While balance transfer cards offer a lifeline, don’t get swept away by the initial glitter. Remember:
- Balance transfer fees: They can add hundreds of dollars to your debt. Calculate the total cost before transferring.
- Minimum payments: Ensure you can make at least the minimum payments during the intro period to avoid interest charges.
- Late payments: They can trigger hefty fees and even disqualify you from the intro APR, negating the benefit.
- Temptation to overspend: Resist using the new card for purchases, as accruing new debt defeats the purpose.
Pro Tips for Balance Transfer Success:
- Transfer all high-interest debt: Maximize the benefit by consolidating all your expensive credit card balances onto the new card.
- Create a payoff plan: Divide your debt by the intro period months to determine your ideal monthly payment.
- Set up automatic payments: Avoid missed payments and potential interest charges by automating your payments.
- Resist new debt: Treat the new card as a debt-busting tool, not a spending spree.
- Celebrate milestones: Track your progress and reward yourself for hitting milestones to stay motivated.
- Credit Score: Different cards cater to specific credit score ranges. Knowing your score (you can get it for free!) will help narrow down your options.
- Balance Transfer Fee: Most cards charge a balance transfer fee (typically 3-5% of the transferred amount). Factor this into your calculations.
- Intro APR Duration: Longer introductory periods give you more breathing room to pay off your debt.
- Rewards and Other Perks: Some cards offer rewards programs or additional benefits like purchase APR, travel insurance, etc. Consider if these align with your spending habits.
Credit cards can be confusing and change often. Our experts are very knowledgeable about credit cards and they want to help you find the right one for you. Check out the credit card winners below that they recommend from our partners.
Wells Fargo Active Cash® Card
- Get $200 in cash rewards when you spend $500 on purchases within the first 3 months.
- Earn an unlimited 2% cash rewards on all your purchases.
- Pay 0% interest for 15 months on purchases and qualifying balance transfers when you open an account. After that, the interest rate will be between 19.99% and 29.99% variable APR. If you make a balance transfer within 120 days, you’ll have a 3% fee and the intro rate, and after that, a balance transfer fee of up to 5% (minimum $5).
- There’s no annual fee for this card.
- No need to keep track of categories or worry about rewards expiring, as long as your account remains open.
- Access a premium collection of benefits at prestigious hotels worldwide with Visa Signature Concierge.
- Get up to $600 of cell phone protection against damage or theft by paying your monthly cell phone bill with your eligible Wells Fargo card (subject to a $25 deductible).
- Click “Apply Now” for more information on the product’s features, terms, and conditions.
Purchase APR
0% Intro APR for 18 billing cycles for purchases, then 20.24% – 29.99% Variable APR
Balance Transfer APR
0% intro APR for 15 months from account opening on qualifying balance transfers, then 20.24%, 25.24%, or 29.99% variable APR
Annual Fee
$0
Recommended Credit Score
Excellent/Good
670 – 850*
Cash Rewards
2%
Welcome Bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Bank of America® Travel Rewards Credit card
- You get 1.5 points for every dollar you spend on things. No yearly fee or extra charges when buying from other countries. The points don’t disappear.
- Get 25,000 bonus points online if you spend $1,000 in the first 90 days – that’s like $250 for travel costs.
- Use the card to plan your trip how you like, not just on certain websites or times.
- Use points to pay for travel or food expenses, like flights, hotels, cars, and restaurant meals.
- No interest on purchases and balance transfers for the first year, then it can be 19.24% – 29.24%.
- If you’re in Preferred Rewards, you can earn 25%-75% more points. So instead of 1.5 points, it’s 1.87-2.62 points for every dollar.
- The card is secure like a chip card, but you can tap to pay.
- This deal is only online, not at Bank of America places. Get it by applying now.
Purchase APR
0% Intro APR for 15 billing cycles for purchases, then 19.24% – 29.24% Variable APR
Balance Transfer APR
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days, then 19.24% – 29.24% Variable APR
Annual Fee
$0
Recommended Credit Score
Excellent/Good
670 – 850*
Cash Rewards
1.5x Points
Welcome Bonus
You can get 25,000 bonus points online if you spend $1,000 within the first 90 days after you open the account. These points can be turned into a $250 discount for your travel expenses.
Discover it® Chrome
Overview
Key Points
- Best For: People who spend moderately, especially on gas and restaurants.
- Cash Back: Earn 2% cash back at gas stations and restaurants (up to $1,000 combined each quarter). Earn 1% cash back on all other purchases.
- Bonus: Dollar-for-dollar cash back match at the end of your first year.
- APR: 0% Intro APR on purchases for 6 months and 0% Intro APR on balance transfers for 18 months. After that, APR ranges from 18.24% to 28.24% variable.
- Balance Transfer Fee: 3% intro fee; up to 5% on future transfers.
- Credit Score Needed: Excellent/Good (670-850).
- Annual Fee: $0.
Details from Issuer
- Intro Offer: Unlimited Cashback Match for new cardmembers. Discover matches all cash back earned at the end of your first year.
- Cash Back: 2% at gas stations and restaurants on up to $1,000 in combined purchases each quarter. 1% on all other purchases.
- APR: 0% intro APR for 18 months on balance transfers. Then, a variable APR of 18.24% to 28.24% applies based on creditworthiness.
- Redemption: Redeem your rewards for cash anytime.
- Extra Feature: Discover can help remove your personal information from select people-search sites for free, via their mobile app.
- Annual Fee: None.
Terms and conditions apply.
Purchase APR
0% Intro APR on purchases for 6 months, then 18.24% – 28.24% Variable APR
Balance Transfer APR
0% Intro APR on balance transfers for 18 months, then 18.24% – 28.24% Variable APR
Annual Fee
$0
Recommended Credit Score
Excellent/Good
670 – 850*
Cash Rewards
1% – 2%
Welcome Bonus
Discover will match all the cash back you’ve earned at the end of your first year.
on American Express’ secure site
Blue Cash Preferred® Card from American Express
- Get a $250 discount on your bill after you spend $3,000 using your new Card in the first 6 months.
- You won’t have to pay any yearly fees in the first year, but after that, it’s $95.
- Buy Now, Pay Later: Split big purchases into smaller payments using Plan It® and pay $0 fees for the first 12 months. After that, there might be a small fee based on how much you’re paying and for how long.
- Start off with a low interest rate: 0% for 12 months on things you buy or balance transfers. After that, the rate could be between 19.24% and 29.99%.
- Get 6% cash back on groceries (up to $6,000 per year), select streaming services, and at gas stations and for public transportation like buses.
- You’ll also get 3% cash back at U.S. gas stations and for travel like taxis and trains, plus 1% cash back on other purchases.
- The cash back you earn can be used to lower your bill.
- If you pay for Equinox+ membership, you could get up to $120 back each year.
- If you’re thinking about The Disney Bundle, you could get $7 back each month after you spend $12.99 or more.
- Make sure to sign up to get these benefits.
Purchase APR
0% Intro APR for 12 billing cycles for purchases, then 19.24% – 29.99% Variable APR
Balance Transfer APR
0% intro APR for 12 months from account opening on qualifying balance transfers, then 19.24%, 29.99%, or 29.99% variable APR
Annual Fee
$0 intro annual fee for the first year then $95.
Recommended Credit Score
Excellent/Good
670 – 850*
Cash Rewards
1% – 6%
Welcome Bonus
Get $250 as a reward after you buy things worth $3,000 with your new Card in the first 6 months.
Wells Fargo Reflect VisaSM Credit Card
- Top Card from Wells Fargo: This card stands out for its low APR and balance transfer benefits.
- Intro APR Period: Enjoy a generous 0% intro APR for 21 months on purchases and qualifying balance transfers.
- Cell Phone Protection: Get up to $600 protection for your cell phone against damage or theft when you pay your monthly phone bill with this card. There is a $25 deductible.
- In-Depth Analysis: Read our detailed Critical Analysis to learn more.
- Purchase & Balance Transfer APR
- Intro APR: 0% for 21 months from account opening on purchases and balance transfers.
- Variable APR: After the intro period, the APR will be 18.24%, 24.74%, or 29.99%.
- Recommended Credit Score
- Credit Score: Excellent/Good (670 – 850).
- Annual Fee: $0.
- Apply Now: Click “Apply Now” to take advantage of this offer and learn more about the product features, terms, and conditions.
- Intro APR: 0% for 21 months from account opening on purchases and balance transfers. After that, the APR will be 18.24%, 24.74%, or 29.99%.
- Balance Transfer Fee: Transfers made within 120 days qualify for the intro rate with a fee of 5% (minimum $5).
- Cell Phone Protection: Up to $600 against damage or theft, with a $25 deductible.
- Wells Fargo Deals: Access personalized deals from various merchants and earn cash back as an account credit when you shop, dine, or enjoy experiences using an eligible Wells Fargo credit card.
Purchase APR
0% intro APR for 21 months from account opening on purchases, then 18.24%, 24.74%, or 29.99% Variable APR
Balance Transfer APR
Intro APR 0% for 15 billing cycles on balance transfers made within the first 60 days. – Variable APR: After that, the APR will be 18.24% – 28.24%.
Annual Fee
$0
Recommended Credit Score
Excellent/Good
670 – 850*
Cash Rewards
N/A
Welcome Bonus
Get 20,000 extra points when you spend $1,000 on things in the first 3 months. You can turn those points into $200 in cash.
Citi Double Cash® Card
Overview
Looking for a simple, flat-rate cash back credit card? This Citi card offers an easy-to-understand 2% cash back (1% when you buy and 1% when you pay). Here’s why it’s a great choice:
- High Cash Back Rate: 2% total (1% when you buy, 1% when you pay)
- Balance Transfer Offer: 0% intro APR for 18 months on balance transfers, then 19.24% – 29.24% (variable)
- Welcome Bonus: Earn $200 cash back after spending $1,500 in the first 6 months (fulfilled as 20,000 ThankYou® Points)
- No Annual Fee: $0 annual fee
- Recommended Credit Score: Fair, Good, Excellent (580 – 850)
Purchase APR: 19.24% – 29.24% (variable)
Balance Transfer Fee:
- Intro fee: 3% (minimum $5) within the first 4 months
- After that: 5% (minimum $5)
Additional Details:
- Earn 5% cash back on hotel, car rentals, and attractions booked on the Citi Travel℠ portal through 12/31/24.
- Balance transfers don’t earn cash back.
- Intro APR doesn’t apply to purchases.
- Interest will be charged on purchases if you don’t pay your entire balance (including balance transfers) by the due date each month.
Read our in-depth Critical Analysis to learn more.
Purchase APR
19.24% – 29.24% (Variable)
Balance Transfer APR
0% intro APR for 18 months on Balance Transfers, then 19.24% – 29.24% (Variable)
Annual Fee
$95
Recommended Credit Score
Fair, Good, Excellent
580 – 850*
Cash Rewards
1% – 5%
Welcome Bonus
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Citi Simplicity® Card
Overview
- Top Choice for Balance Transfers: This card is excellent if you want the longest possible intro APR on balance transfers.
- Great Intro Offers: Enjoy a generous intro period for both purchases and balance transfers.
- No Extra Fees: No late fees, no penalty rate, and no annual fee.
Purchase & Balance Transfer APR
- Intro APR: 0% for 12 months on purchases and 0% for 21 months on balance transfers.
- Variable APR: After the intro period, the APR will be 19.24% – 29.99%.
Recommended Credit Score
- Credit Score: Excellent/Good (670 – 850).
Annual Fee
- Annual Fee: $0.
Card Details From Issuer
- No Fees: No late fees, no penalty rate, and no annual fee ever.
- Intro APR:
- 0% for 21 months on balance transfers from the date of the first transfer.
- 0% for 12 months on purchases from the date of account opening.
- After the intro periods, the APR will be 19.24% – 29.99%, depending on your creditworthiness.
- Balance Transfers:
- Must be completed within 4 months of account opening.
- Intro balance transfer fee is 3% (minimum $5) for the first 4 months. After that, it’s 5% (minimum $5).
- Citi® Quick Lock: Stay protected with Citi® Quick Lock.
