Best Balance Transfer Credit Cards

Welcome to our guide to the best balance transfer credit cards! If you’re struggling with credit card debt, a balance transfer credit card can be an effective tool to help you manage and pay off your balances. By transferring your high-interest credit card debt to a card with a low or 0% introductory interest rate, you can save money on interest charges and potentially pay off your debt faster.

However, with so many balance transfer credit cards available, it can be difficult to know which one to choose. Our guide is designed to help you navigate the options and find the best balance transfer credit card for your needs. We’ve researched and reviewed the top cards on the market, taking into account factors such as introductory interest rates, balance transfer fees, ongoing interest rates, rewards programs, and more.

Whether you’re looking to consolidate debt, save money on interest charges, or earn rewards while paying off your balance, our guide can help you find the right balance transfer credit card to meet your goals.

What are balance transfer credit cards?

Balance transfer credit cards are credit cards that allow you to transfer the balance of one or more existing credit card accounts to the new card. The primary goal of a balance transfer credit card is to help you consolidate and pay off high-interest debt from other credit cards.

Balance transfer credit cards often come with an introductory period during which you can enjoy a low or 0% interest rate on the transferred balance for a set period of time, typically between 6 and 24 months. This can help you save money on interest charges and allow you to focus on paying down the principal balance.

However, it’s important to note that most balance transfer credit cards will charge a balance transfer fee, typically around 3-5% of the amount being transferred. Additionally, if you don’t pay off the transferred balance in full by the end of the introductory period, the interest rate may increase substantially, potentially making your debt more expensive in the long run.

Overall, balance transfer credit cards can be a useful tool for managing and paying off credit card debt, but it’s important to choose a card with favorable terms and to have a solid plan in place for paying off the transferred balance within the introductory period.

How are balance transfer credit cards used?

Balance transfer credit cards are typically used to consolidate high-interest credit card debt into one account with a lower interest rate, allowing you to save money on interest charges and potentially pay off your debt faster. Here are the general steps to use a balance transfer credit card:

1. Research and compare balance transfer credit cards: There are many balance transfer credit cards available, each with different terms and benefits. It’s important to compare cards to find one that fits your needs and budget.
2. Apply for the card: Once you’ve chosen a card, you’ll need to apply for it and provide information about your current credit card balances and the accounts you wish to transfer.
3. Transfer your balances: After your application is approved, you can typically transfer your balances online or over the phone. You’ll need to provide the account numbers and balances for the credit cards you wish to transfer, and the balance transfer fee will be applied.
4. Make payments: During the introductory period, you’ll need to make at least the minimum payment on your new balance transfer credit card each month to avoid late fees and other penalties.
5. Pay off your debt: Ideally, you should aim to pay off your transferred balances in full before the introductory period ends. This will help you avoid the higher interest rate that typically applies after the introductory period expires.

Overall, using a balance transfer credit card requires careful planning and budgeting to ensure you can pay off your debt before the introductory period ends. But if used responsibly, a balance transfer credit card can help you get out of debt faster and save money on interest charges.

Benefits of balance transfer credit cards

There are several benefits of using a balance transfer credit card:

1. Lower interest rates: Balance transfer credit cards often come with a low or 0% introductory interest rate on transferred balances, allowing you to save money on interest charges and pay down your debt faster.
2. Consolidation of debt: By transferring your balances to one card, you can consolidate multiple payments into one monthly payment, making it easier to manage your debt and potentially reducing the amount of interest you pay.
3. Potential savings: Depending on the interest rates and fees on your existing credit cards, a balance transfer credit card could save you hundreds or even thousands of dollars in interest charges over time.
4. Rewards programs: Some balance transfer credit cards also offer rewards programs, allowing you to earn cash back, points, or miles on purchases while paying down your transferred balance.
5. Simplified budgeting: With one balance and one payment to manage, it can be easier to budget and keep track of your finances.

It’s important to note that balance transfer credit cards are not a solution for everyone, and they do come with potential risks, such as balance transfer fees and higher interest rates after the introductory period ends. It’s important to carefully research and compare cards to find one that fits your needs and budget, and to have a solid plan in place for paying off your transferred balances within the introductory period.

Downsides of balance transfer credit cards

While balance transfer credit cards can be a useful tool for managing and paying off credit card debt, there are also several downsides to consider:

1. Balance transfer fees: Most balance transfer credit cards charge a fee to transfer balances, typically around 3-5% of the amount being transferred. This fee can add up, especially if you are transferring a large balance.
2. Higher interest rates after the introductory period ends: Once the introductory period ends, the interest rate on the transferred balance may increase substantially, potentially making your debt more expensive in the long run.
3. Impact on credit score: Applying for a new credit card and transferring balances can temporarily lower your credit score. Additionally, if you close your old credit card accounts after transferring the balances, this could also negatively impact your credit score.
4. Temptation to accumulate more debt: Once you’ve transferred your balances to a new card, it can be tempting to start using your old credit cards again and accumulate more debt. This can make your financial situation worse in the long run.
5. Limited credit availability: Depending on your credit score and credit history, you may not be approved for a balance transfer credit card or may only be approved for a low credit limit, which may not cover all of your existing debt.

Overall, it’s important to carefully consider the potential downsides of balance transfer credit cards and to have a solid plan in place for paying off your transferred balances within the introductory period. Before applying for a balance transfer credit card, be sure to research and compare cards to find one that fits your needs and budget.

Types of balance transfer credit cards

There are several types of balance transfer credit cards available, each with different features and benefits. Here are some of the most common types:

1. 0% APR balance transfer cards: These cards offer a 0% introductory APR on transferred balances for a set period of time, typically 12-18 months. This can be a great option if you have a high balance and want to save money on interest charges while paying down your debt.
2. Low-interest balance transfer cards: These cards offer a low introductory interest rate on transferred balances, typically between 1% and 5% for a set period of time. While the interest rate is not 0%, it is still significantly lower than the rate on most credit cards.
3. Rewards balance transfer cards: These cards allow you to earn rewards, such as cash back or points, on purchases while also offering a balance transfer option. This can be a good option if you want to consolidate debt while also earning rewards on your spending.
4. Secured balance transfer cards: These cards require a security deposit to be made, which becomes your credit limit. They can be a good option if you have poor or no credit history, but they may also come with higher fees and interest rates.
5. Student balance transfer cards: These cards are designed for students and offer lower interest rates and other benefits, such as cash back rewards and waived annual fees. They can be a good option for students who want to consolidate debt and establish credit.

When choosing a balance transfer credit card, it’s important to consider the interest rate, balance transfer fee, annual fee, credit limit, and other features that may be important to you. It’s also important to have a solid plan in place for paying off your transferred balances within the introductory period.

Common features of balance transfer credit cards

Balance transfer credit cards can come with a variety of features, depending on the card issuer and the specific card. However, some of the most common features of balance transfer credit cards include:

1. Introductory balance transfer APR: This is a low or 0% APR that is offered on balance transfers for a set period of time, typically 12-18 months. This allows you to pay off your transferred balances without accruing additional interest charges.
2. Balance transfer fee: This is a fee that is charged for transferring balances from one credit card to another. The fee is usually a percentage of the balance being transferred, typically around 3-5%.
3. Ongoing APR: Once the introductory period ends, the ongoing APR on the card will apply to any remaining balance. This APR can vary widely, so it’s important to compare cards and choose one with a low ongoing APR if you plan to carry a balance.
4. Credit limit: This is the maximum amount of credit that the card issuer will extend to you. The credit limit will vary based on your creditworthiness and other factors.
5. Rewards program: Some balance transfer credit cards offer rewards programs that allow you to earn cash back, points, or miles on your purchases. However, it’s important to remember that rewards should not be the primary consideration when choosing a balance transfer credit card, as the interest savings and fees can outweigh the rewards benefits.
6. Annual fee: Some balance transfer credit cards charge an annual fee, while others do not. Cards with an annual fee may offer additional benefits, such as higher rewards rates or travel perks, but you’ll need to weigh the cost of the fee against the benefits of the card.
7. Other perks: Some balance transfer credit cards may offer additional perks, such as travel insurance, extended warranties, or purchase protection. These benefits can be useful, but again, it’s important to consider the overall cost and value of the card before making a decision.

How to choose the best balance transfer credit card

Choosing the best balance transfer credit card depends on your individual financial situation and goals. Here are some factors to consider when evaluating balance transfer credit card options:

1. Interest rate: Look for a balance transfer credit card with a low or 0% introductory interest rate, and a competitive ongoing interest rate after the introductory period ends. This will help you save on interest charges and pay down your debt faster.
2. Balance transfer fee: Check the balance transfer fee for each card you’re considering, which is usually a percentage of the balance being transferred. Look for a card with a low balance transfer fee or no fee at all.
3. Introductory period: Consider the length of the introductory period for the balance transfer APR. Longer periods will give you more time to pay down your debt without accruing interest charges.
4. Credit limit: Check the credit limit of each card to make sure it’s high enough to accommodate your transferred balance.
5. Ongoing rewards: If you plan to use the card for purchases after the balance transfer is complete, look for a card with a rewards program that fits your spending habits and offers ongoing rewards.
6. Annual fee: Consider the annual fee of the card, if any, and whether the rewards or other benefits justify the cost.
7. Credit score requirements: Some balance transfer credit cards require a higher credit score than others, so make sure you meet the requirements before applying.
8. Other fees and terms: Review the card’s terms and conditions for other fees, such as late payment fees or cash advance fees.

Once you’ve considered these factors, compare the balance transfer credit cards available and choose the one that best fits your needs and goals. Remember, the goal of a balance transfer credit card is to help you pay down debt faster and more affordably, so make sure the card you choose supports that goal.

How to get the most out of a balance transfer credit card

To get the most out of a balance transfer credit card, follow these tips:

1. Take advantage of the introductory period: Make sure you have a plan to pay off your transferred balance during the introductory period when the interest rate is low or 0%. This will help you save on interest charges and pay down your debt faster.
2. Pay on time: Late payments can trigger penalty fees and potentially end your introductory period. Set up automatic payments or reminders to ensure you make your payments on time each month.
3. Don’t use the card for new purchases: While some balance transfer credit cards offer rewards or cash back on new purchases, using the card for purchases can add to your debt and make it harder to pay down your transferred balance. Focus on paying down your transferred balance during the introductory period.
4. Avoid balance transfers between the same issuer: Many credit card issuers don’t allow balance transfers between their own cards. Check the terms and conditions of your balance transfer card to ensure you can transfer balances from your existing credit cards.
5. Consider closing your old accounts: If you’ve transferred balances from multiple credit cards, consider closing those accounts to avoid the temptation to use them again.
6. Monitor your credit score: A balance transfer credit card can have a temporary negative impact on your credit score, as it can increase your overall credit utilization. However, paying down your debt and making on-time payments can help improve your credit score in the long run.

By following these tips, you can make the most of your balance transfer credit card and use it to pay down your debt faster and more affordably. Remember, the goal is to reduce your overall debt and improve your financial health, so focus on paying down your transferred balances during the introductory period and avoid adding to your debt load.

How to compare the best balance transfer credit cards

When comparing the best balance transfer credit cards, here are some key factors to consider:

1. Introductory APR: Look for a card with a low or 0% introductory APR for balance transfers. The length of the introductory period is also important, as a longer period will give you more time to pay down your debt without accruing interest charges.
2. Ongoing APR: Check the ongoing APR for the card after the introductory period ends. Look for a card with a competitive interest rate, as this will affect your ability to pay down your debt over time.
3. Balance transfer fee: The balance transfer fee is usually a percentage of the amount being transferred, so look for a card with a low or no balance transfer fee. Some cards also offer a promotional balance transfer fee, so be sure to check the terms and conditions.
4. Credit limit: Make sure the credit limit is high enough to accommodate your transferred balance.
5. Rewards program: If you plan to use the card for purchases after the balance transfer, look for a card with a rewards program that fits your spending habits.
6. Annual fee: Consider the annual fee of the card, if any, and whether the rewards or other benefits justify the cost.
7. Credit score requirements: Some balance transfer credit cards require a higher credit score than others, so make sure you meet the requirements before applying.
8. Other fees and terms: Review the card’s terms and conditions for other fees, such as late payment fees or cash advance fees.

When comparing balance transfer credit cards, make a list of the factors that are most important to you and compare the cards based on those factors. Look for a card that offers the most value and fits your financial goals. Remember to read the fine print carefully and understand the terms and conditions of the card before applying.

How do balance transfer credit cards work?

Balance transfer credit cards work by allowing you to transfer the balance from an existing credit card to a new card that offers a lower interest rate or a 0% introductory APR for a limited period of time. This can help you save money on interest charges and pay down your debt faster.

Here’s how the process typically works:

1. Apply for a balance transfer credit card: You can apply for a balance transfer credit card online or by phone. The credit card issuer will review your credit history and credit score to determine whether you qualify for the card.
2. Initiate the balance transfer: Once you’re approved for the new card, you can initiate the balance transfer by providing the account number and amount of the balance you want to transfer. You’ll also need to provide the name of the credit card issuer and the account number for the card you want to transfer the balance from.
3. Wait for the transfer to complete: The balance transfer can take several days to complete, depending on the credit card issuer and the amount of the transfer.
4. Pay off the transferred balance: Once the balance transfer is complete, you’ll owe the transferred balance to the new credit card issuer. You’ll need to make payments on the new card to pay off the transferred balance before the introductory period ends.
5. Avoid new purchases: To maximize the benefit of the balance transfer, it’s best to avoid making new purchases on the new card until you’ve paid off the transferred balance.

It’s important to note that balance transfer credit cards often charge a balance transfer fee, which is usually a percentage of the amount being transferred. This fee can offset some of the savings you’ll get from the lower interest rate or 0% introductory APR, so be sure to factor it into your calculations when deciding whether a balance transfer credit card is right for you.

How to apply for a balance transfer credit card

Here are the steps to apply for a balance transfer credit card:

1. Check your credit score: Before you apply for a balance transfer credit card, it’s a good idea to check your credit score. You can do this for free at several websites, including Credit Karma and Credit Sesame. Knowing your credit score can help you determine which cards you’re likely to be approved for.
2. Research balance transfer credit cards: Look for balance transfer credit cards that offer a low or 0% introductory APR, a low balance transfer fee, and a competitive ongoing APR after the introductory period ends. You can compare cards online using a credit card comparison website or by visiting the websites of different credit card issuers.
3. Apply for the card: Once you’ve found a balance transfer credit card that fits your needs, you can apply online or by phone. You’ll need to provide personal and financial information, including your name, address, Social Security number, employment information, and income.
4. Initiate the balance transfer: After you’re approved for the card, you can initiate the balance transfer by providing the account number and amount of the balance you want to transfer. You’ll also need to provide the name of the credit card issuer and the account number for the card you want to transfer the balance from.
5. Wait for the transfer to complete: The balance transfer can take several days to complete, depending on the credit card issuer and the amount of the transfer.

It’s important to note that credit card issuers may have specific eligibility requirements for balance transfer credit cards. For example, they may require a certain credit score or income level. Additionally, if you have a high debt-to-income ratio or a history of missed payments, you may not be approved for a balance transfer credit card.

Balance transfer credit cards glossary

Here are some common terms related to balance transfer credit cards:

1. Balance transfer: The process of transferring a balance from one credit card to another.
2. Introductory APR: A promotional interest rate that is offered for a limited period of time when you open a new credit card. For balance transfer credit cards, this rate is usually 0% or a low rate.
3. Ongoing APR: The interest rate that is charged on your balance after the introductory period ends.
4. Balance transfer fee: A fee charged by the credit card issuer for transferring a balance. This fee is usually a percentage of the amount being transferred.
5. Credit limit: The maximum amount of credit that you can use on your credit card.
6. Minimum payment: The smallest amount you are required to pay each month on your credit card balance. It is usually a percentage of your balance.
7. Credit score: A number that represents your creditworthiness based on your credit history and other factors. It is used by lenders to determine whether to approve your application for credit and what interest rate to offer.
8. Credit utilization ratio: The amount of credit you are using compared to your credit limit. A high credit utilization ratio can negatively impact your credit score.
9. Grace period: The amount of time you have to pay your balance in full before interest charges are applied.
10. Late payment fee: A fee charged when you miss a credit card payment.

Understanding these terms can help you choose the best balance transfer credit card for your needs and avoid costly mistakes.

What are the requirements to apply for a balance transfer credit card

The requirements to apply for a balance transfer credit card may vary depending on the credit card issuer, but here are some common requirements:

1. Good credit score: Many balance transfer credit cards require a good or excellent credit score, which is typically a FICO score of 670 or higher. However, some cards may be available to those with fair or average credit scores.
2. Employment and income: You may be required to provide information about your employment status and income to prove that you have the means to pay off your credit card debt.
3. Debt-to-income ratio: Some issuers may consider your debt-to-income ratio, which is the amount of debt you have compared to your income. A high debt-to-income ratio may make it more difficult to get approved for a balance transfer credit card.
4. Age: You must be at least 18 years old to apply for a credit card.
5. Citizenship or residency: You must be a U.S. citizen or a legal resident with a valid Social Security number to apply for most balance transfer credit cards.
6. Existing credit card debt: Some issuers may have restrictions on the amount of existing credit card debt you can transfer to their card.

It’s important to read the terms and conditions carefully and understand the eligibility requirements before applying for a balance transfer credit card. Applying for multiple credit cards within a short period of time can also negatively impact your credit score, so it’s best to do your research and choose the card that’s right for you before submitting an application.

Are balance transfer credit cards worth it?

Whether a balance transfer credit card is worth it for you depends on your specific financial situation and goals. If you have high-interest credit card debt and are struggling to pay it off, a balance transfer credit card can be a useful tool to help you save money on interest and pay off your debt faster. By transferring your existing balance to a card with a lower interest rate or 0% introductory APR, you can potentially save hundreds or even thousands of dollars in interest charges.

However, it’s important to consider the potential downsides of balance transfer credit cards, such as balance transfer fees, ongoing interest rates, and the temptation to continue using credit cards and accumulating more debt. Additionally, if you miss payments or fail to pay off your balance before the end of the introductory period, you could end up paying more in interest charges than you would have with your original credit card.

To determine whether a balance transfer credit card is worth it for you, it’s important to carefully evaluate the card’s terms and conditions, including the introductory APR, ongoing APR, balance transfer fee, and any other fees or charges. You should also consider your ability to pay off your debt before the end of the promotional period and whether the card fits into your overall financial plan. If used responsibly, a balance transfer credit card can be a valuable tool for managing credit card debt and achieving your financial goals.

What’s the difference between balance transfer credit cards and regular credit cards?

The main difference between balance transfer credit cards and regular credit cards is that balance transfer cards are designed to help you transfer existing credit card debt from one or more cards to a new card with a lower interest rate or 0% introductory APR. This can help you save money on interest charges and pay off your debt faster. In contrast, regular credit cards are used to make new purchases and typically have a higher ongoing APR than balance transfer cards.

Here are some other key differences between balance transfer credit cards and regular credit cards:

1. Interest rates: Balance transfer credit cards typically offer a lower introductory interest rate or 0% APR for a limited period, while regular credit cards typically have higher ongoing interest rates.
2. Fees: Balance transfer credit cards often charge a balance transfer fee, which is a percentage of the amount you transfer. In contrast, regular credit cards typically don’t have a balance transfer fee, but may have annual fees, late fees, and other charges.
3. Rewards and perks: Balance transfer credit cards may offer rewards and perks, but they are usually not as generous as those offered by regular credit cards. Regular credit cards may offer cash back, points, miles, or other rewards for purchases, as well as perks like travel insurance, purchase protection, and extended warranties.
4. Credit score requirements: Balance transfer credit cards may require a higher credit score than regular credit cards, since they are typically offered to people with good to excellent credit who are more likely to qualify for lower interest rates and other benefits.

Overall, balance transfer credit cards are designed to help you manage existing credit card debt, while regular credit cards are designed for making new purchases and earning rewards. Depending on your financial goals and needs, one type of card may be more beneficial than the other.

What are common fees for balance transfer credit cards?

Balance transfer credit cards typically come with fees that can impact your overall savings and make it important to consider all of the associated costs before choosing a card. Here are some of the most common fees you might encounter when using a balance transfer credit card:

1. Balance transfer fee: Most balance transfer credit cards charge a fee to transfer your balance from one card to another. This fee is usually a percentage of the balance you transfer, typically ranging from 3% to 5% of the transfer amount.
2. Annual fee: Some balance transfer credit cards may charge an annual fee, which is a fee you pay each year for the privilege of using the card. This fee can range from $0 to several hundred dollars, depending on the card.
3. Late payment fee: If you don’t make your minimum payment on time, you may be charged a late payment fee, which can range from $25 to $40 or more.
4. Returned payment fee: If you make a payment that is returned by your bank or credit card issuer, you may be charged a returned payment fee, which can be as much as $40.
5. Cash advance fee: If you use your balance transfer credit card to get a cash advance, you may be charged a cash advance fee, which is typically a percentage of the amount you withdraw.
6. Foreign transaction fee: If you use your balance transfer credit card to make purchases outside of the United States, you may be charged a foreign transaction fee, which is typically a percentage of the purchase amount.

It’s important to carefully review the terms and conditions of any balance transfer credit card you’re considering to understand all of the fees and charges associated with the card.

What are the best business balance transfer credit cards?

While there are many elite credit cards that offer premium benefits and perks, such as rewards programs, travel benefits, concierge services, and more, balance transfer offers are typically not a focus of these types of cards. Elite credit cards tend to be more focused on high-end benefits and rewards, and may not offer the same types of balance transfer promotions as other credit cards.

That being said, it is still possible to find an elite credit card that offers a balance transfer promotion, such as a 0% introductory APR on balance transfers for a certain period of time. However, it’s important to carefully review the terms and conditions of any credit card you’re considering, including any fees and charges associated with the balance transfer offer, to ensure that it’s the right fit for your needs and financial situation.

The future of balance transfer credit cards

It’s possible that balance transfer credit cards will continue to be a popular option for consumers who are looking to save money on high-interest credit card debt.

In recent years, the trend has been toward longer introductory periods with 0% APR on balance transfers, which can provide consumers with more time to pay down their debt without accruing interest charges. Additionally, some credit card issuers may continue to waive balance transfer fees or offer other incentives to entice customers to transfer their balances.

However, it’s also possible that the popularity of balance transfer credit cards may decline in the future as more consumers turn to personal loans or other forms of debt consolidation. Ultimately, the future of balance transfer credit cards will depend on a variety of factors, including changes in interest rates, consumer spending habits, and credit card issuer policies.

FAQs about the best balance transfer credit cards