Our top choices for best balance-transfer credit cards
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Credit card balance transfers can be a valuable tool when you have high-interest debt to consolidate and pay down, especially in today’s high interest rate environment. This guide will explain how credit card balance transfers work, their pros and cons, and reasons to consider this debt consolidation strategy over alternatives.
What is a credit card balance transfer?
A balance transfer credit card feature lets you transfer a balance from one or more credit cards to a card offering a promotional interest rate, often 0%, for a limited time, typically 12 to 21 months. A balance transfer can help you wipe out debt faster and for less money by letting you avoid interest charges while you chip away at your balance.
The best balance transfer cards may offer 0% intro APR for 21 months, but in exchange for a shorter promotional period, like 12 months, you may find a card with no balance transfer fees.
Balance transfers are typically offered to new cardholders, although you may also receive an offer from your current credit card company. Either way, you’ll need to provide your account numbers and dollar amounts for the credit card balances you want to transfer.
The debts are then transferred to your new balance transfer credit card up to the limits you’re approved for. You may also be charged a balance transfer fee, typically 3% to 5% of the amount transferred, which will be added to your balance. While it adds to your balance, paying a transfer fee will often save you more money than letting your debt continue to accrue high interest charges. Consider this example:
| Beginning credit card balance | APR | Monthly payment | Balance transfer fee | Months to pay off debt | Interest/fees paid | |
| Without a balance transfer | $5,000 | 25% | $300 | $0 | 21 | $1,206 |
| Using a balance transfer | $5,000 | 0% for 21-month promotional period | $300 | 5% of balance: $250 | 17 | $250 |
By paying the $250 balance transfer fee, you could save more than $900 over the life of the loan and pay off your debt four months earlier.
While paying down debt without accruing interest may sound enticing, remember that when the promotional period ends, your remaining balance will start accruing interest immediately at the card’s regular variable interest rate -- the average credit card interest rate is 20.75%, according to CNET sister site Bankrate. This is ultimately why balance transfers work best for consumers who have a debt repayment plan to pay their balances off completely before the intro offer ends.
Pros and cons of credit card balance transfers
There are risks involved in applying for a new credit card if you’re already struggling with debt, yet these financial products can work well for consumers who have a plan to pay down debt.
Pros
Save money on interest when paying down existing credit card debt
Can be a tool to help you pay off credit card debt faster
Consolidate multiple credit cards into one payment
Could boost your credit score by lowering your credit utilization ratio
Cons
You could end up deeper in debt if you continue spending on the old cards
Balance transfer fees may increase your balance
Introductory rate period may not offer enough time to pay off debt before balance starts accruing at high interest rate
You may not qualify if your credit score doesn’t meet the requirements
Reasons to consider a credit card balance transfer
There are several reasons to consider a balance transfer credit card, and they all have to do with reducing your credit card debt.
Spend less money on interest as you pay down debt
The main reason you may want to consider a balance transfer credit card is because you’re carrying a balance on one or more credit cards charging sky-high interest rates. By applying for a balance transfer, you can pay down your balance without accruing interest during the introductory period, which can help you chip away at the balance faster and help you save money on interest charges. Balance transfers are typically best for consumers who have an amount of debt they can reasonably pay off before the introductory period ends.
Simplify managing paying off multiple credit cards
By consolidating multiple credit card balances on one balance transfer card, you can simplify your finances with just one payment per month. This can help if you have trouble managing the payment schedules for multiple cards.
Choosing a balance-transfer credit card
Here’s what you need to know when considering a balance transfer credit card.
Credit Card Balance Transfers Could Save You Money on Your Debt: Here’s How They Work
I Paid Off Over $26,000 in Credit Card Debt With a Balance Transfer Card. Here’s What I Learned
5 Strategies for Consolidating Credit Card Debt
Can You Get a Balance Transfer Credit Card With Fair or Bad Credit?
Credit Cards, Interest Rates and APRs: Everything You Need to Know
Reasons not to get a balance transfer credit card
Although a balance transfer can be a helpful tool as you pay off debt, there are plenty of reasons it may not be the right choice for you.
You won’t pay off the balance before the promotional period ends
Maybe you don’t have the funds to commit to paying down your credit card debt within the promotional period. You can do multiple balance transfers to give yourself additional time, but that depends on qualifying for another transfer and potentially paying another balance transfer fee. You may be better off considering an installment loan instead. Personal installment loans can offer fixed interest rates, fixed monthly payments and repayment terms up to 84 months or even longer.
You don’t want to risk even more credit card debt
If you think you’ll be tempted to use your credit cards again after transferring the balances, a balance transfer card could just land you deeper in debt. First, you’re not alone -- there are plenty of people who try to dig themselves out of credit card debt only to end up with more debt than they started with. Consider reaching out to your credit card companies to ask for assistance creating a repayment plan that fits your budget or reach out to a credit counseling or a debt management program for additional guidance.
Understanding balance transfer fees and terms
The main terms you’ll want to understand with credit card balance transfers include:
- Balance transfer fees: These fees are added to the debt amount transferred upfront, typically 3% to 5% of the balance, depending on the card. It’s possible to avoid these fees altogether, but cards that don’t charge balance transfer fees usually offer much shorter promotional periods.
- Intro balance transfer APR: Promotional balance transfer APRs are the temporary interest rates, typically as low as 0%, charged for a credit card balance amount transferred from another card. The promotional periods typically last months or billing cycles, after which the regular variable APR applies
- Intro purchase APR: Promotional purchase APRs apply to new purchases. Similar to balance transfer APR, the rates are temporary, after which the regular variable APR applies. Some credit cards offer promotional APR for both balance transfer and purchases.
- Regular APR: This is the regular variable APR your card charges after the promotional interest rate offers end.
How to do a credit card balance transfer
Before you decide to consolidate debt with a balance transfer offer, you should understand how to execute a balance transfer.
- Assess your debts. Figure out how much debt you have and how long you may need to pay it off.
- Compare offers. Compare balance transfer credit cards based on the length of their introductory offers, their balance transfer fees and other fine print.
- Apply online. Find the card you want and apply online. You’ll need to share your full name and contact information, household income, monthly housing payment amount, Social Security number and other personal information.
- Share your debt details. If you’re approved for a card, you’ll need to provide information on your existing debts you want to transfer to your new card issuer, including account numbers and the amount you want to transfer.
- Keep making payments on existing accounts. While you wait for the transfer to be completed, continue making payments on all your accounts.
- Confirm your old balances are at $0. Once your old accounts show $0 balances, focus on paying down the balance on your balance transfer credit card.
Are there limitations on the amount I can transfer?
Balance transfers may be limited based on card issuer rules that vary by company, so you’ll want to do some research before you pick a card. For example, Chase only allows balance transfers online or with a customer service specialist in amounts up to $15,000 for each 30-day period.
Additionally, the maximum amount you can transfer will be limited by your balance transfer card’s credit limit. Also remember that if your card charges a balance transfer fee, you’ll need enough room on your card to accommodate that amount in addition to the transferred balance.
How long does a balance transfer take to complete?
Balance transfers can take one to three weeks from start to finish, which is why it’s essential to keep making payments on old accounts until they show a $0 balance. If you fail to make payments on these accounts before your debts are transferred to your new card, you can be hit with late fees, penalty interest rates and damage to your credit score.
Managing credit card debt after a balance transfer
Consolidating debt with a balance transfer credit card can help you save money and get out of debt faster, but you’ll have the best results if you commit to a payment plan before applying.
If you can, pay down as much debt as possible as quickly as you can to help reduce or wipe out the balance before the introductory APR period ends. Most important of all: Stop using credit cards for purchases while you focus on debt repayment. If you keep using your card for purchases, you may have to pay interest on those purchases right away. Worse, you’ll make it significantly harder to pay down the amounts you owe.
Can I perform multiple balance transfers to pay off my debt?
While taking advantage of more than one balance transfer can help you pay down more debt or give you more time to pay off a balance, remember that transferring debt doesn’t make it go away. In fact, balance transfers really just move debt around and help you save on interest for a limited time. And many cards charge a balance transfer fee for each transfer, which is added to your balance. The only way to pay off your debt is to make regular payments until all your balances are at $0.
What happens if I miss a payment during the promotional period?
Missing a payment on a card during its 0% promotional period typically means losing the promotional APR and being charged a penalty interest rate. Late fees may also apply. The exact consequences of missing a payment depends on your card’s terms and conditions.
Tips for maximizing the benefits of credit card balance transfers
- Be choosy when picking a card. Balance transfer cards have varying terms and perks. Ideally, you’ll find one with a long intro APR offer and low balance transfer fee.
- Steer clear of 0% APR cards with rewards. Balance transfer cards with rewards can make sense in some situations, but you should avoid them if you’re worried the potential for rewards will entice you into spending money.
- Have a plan for your debt from day one. Figure out how much debt you have and how much you can afford to pay each month. If you have $5,000 in credit card debt and you can afford to pay $300 per month, for example, you’ll want a 0% balance transfer offer that lasts at least 17 months.
- Stop using credit cards for purchases. Put your credit cards away for safekeeping while you pay down debt. Stick to using debit or cash instead.
Best credit cards for balance transfers
Consider the following offers when looking for a balance transfer card:
| Credit card | Annual fee | Intro APR offer | Balance transfer fee |
| Citi Simplicity® Card* | $0 | 0% introductory APR for balance transfers for 21 months from the date of first transfer (then 19.24% to 29.99% variable). Balance transfers must be completed within four months of account opening to qualify for the introductory rate. | 3% intro balance transfer fee ($5 minimum) for the first four months after account opening, then 5% ($5 minimum) |
| U.S. Bank Visa® Platinum Card | $0 | 0% introductory APR on purchases and balance transfers for 21 billing cycles (then 18.74% to 29.74% variable) | 5%, with a $5 minimum |
| BankAmericard® credit card* | $0 | 0% introductory APR on purchases and for any balance transfers made within 60 days of account opening for 18 billing cycles (then 16.24% to 26.24% variable). | 3% for 60 days from account opening, then 4% |
| Wells Fargo Reflect® Card | $0 | 0% introductory APR on purchases and qualifying balance transfers for 21 months from account opening (then 18.24%, 24.74%, or 29.99% variable APR thereafter). Balance transfers must be completed within 120 days of account opening. | 5%, with a $5 minimum |
| Citi Double Cash® Card | $0 | 0% introductory APR on balance transfers for 18 months, followed by a variable APR of 19.24% to 29.24% (balance transfers must be completed within four months of account opening) | Intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first four months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after four months of account opening. |
FAQs
Most balance transfer credit cards require good to excellent credit scores. A FICO score of at least 670 is considered good.
Major credit card issuers typically prohibit balance transfers between their own card products, so you’ll likely have to use a balance transfer from a different issuer.
Applying for a new credit card can temporarily ding your credit score, but your score can also benefit from having a new credit limit since it will automatically lower your credit utilization ratio. Making on-time payments on your new card and lowering your debt can also boost your credit score over time.
Most balance transfer credit cards let you transfer debts besides credit card balances. This can include personal loans, store credit card balances and more.
You can close your old credit cards with a $0 balance, but doing so can harm your credit score since it reduces your available credit and shortens the average length of your credit history.
You can make new purchases on a balance transfer credit card, but you should avoid it if possible. Not only can new purchases make it harder to pay down existing debt, but you would lose your grace period. That means you’ll be charged interest on those purchases even if you pay the new purchase balance off each month.
Additional Resources and Related Articles
- How Many Credit Cards Should You Have?
- What Are 0% APR Credit Cards and How Do They Work?
- Should You Make Multiple Balance Transfers to Avoid Interest?
- 5 Strategies for Consolidating Credit Card Debt
*All information about the Citi Simplicity Card and the BankAmericard credit card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
