If you're struggling with, a with no balance transfer fee can provide you with a helpful reprieve. These cards can help you pay down debt faster and save on interest charges without worrying about the cost of transferring a hefty credit card balance.
Alets you move a balance from an existing, high-interest account to a new credit card with a low -- or even a -- for a set period of time, usually between 12 and 20 months. During the low-interest period, you can pay down the principal without getting buried under new interest.
What's the catch? Most balance transfer cards charge a transfer fee -- typically between 3% and 5% -- which can be a big step in the wrong direction if you're trying to settle your debt. However, some cards don't charge a transfer fee. The trade-off? A shorter low-interest introductory period. While most balance transfer cards offer up to 20 months of low or no interest, no transfer fee cards usually just offer 12 months. But if you're able to pay off your debt during that first year, you can save yourself around 3% to 4% (depending on the balance transfer fee other cards charge) of the amount you owe.
If a credit card with no balance transfer fee makes sense for you, we've highlighted our top picks below, followed by two cards we also think are worth considering, even though they do feature a balance transfer fee.
Wings Financial Credit Union is based in Minnesota, but you can join by making a $5 donation to the Wings Financial Foundation. After that, you can apply for the Wings Visa Platinum Credit Card*, which charges no annual or balance transfer fees and offers 12 months of 0% introductory APR on balance transfers and purchases (8.15% to 18.00% variable APR thereafter).
Best overall runner-up
First Tech Federal Credit Union is based out of San Jose, California, and catered initially to employees of tech companies in the Pacific Northwest. Today, you can become a member if you work for one of their partner companies or become a member of the Computer History Museum ($15 for an annual membership) or the Financial Fitness Association ($8 for an annual membership).
The First Tech Platinum Mastercard* credit card also offers 12 billing cycles of 0% introductory APR on balance transfers (6.99% to 18.00% variable APR thereafter) with no credit card balance transfer fees.
Best low fee alternative
The US Bank Visa Platinum Card* is one of our favorite balance transfer credit cards, offering 20 billing cycles of 0% introductory APR (14.49% to 24.49% variable APR thereafter) after signing up. If you have a high balance, that long interest-free introductory period can offer major savings. The catch: The credit card company charges you a 3% balance transfer fee ($5 minimum), which can add up if you're transferring a large balance.
Another option worth considering
- 1% unlimited cash back on all qualifying purchases
- 1% unlimited cash back on all qualifying purchases
The SunTrust Prime Rewards Credit Card* doesn't charge a balance transfer fee per se ($0 for balance transfers in the first 60 days, then 3% or $10 minimum). Rather, it comes with three years of a relatively low APR -- 3.25% variable -- which serves as a flat transfer fee paid over a year. It's worth noting that the effective rate will actually be lower than 3.25% variable, if you can pay down your balance.
Bottom line: If you need more time to pay off your debt, the SunTrust Mastercard Prime Rewards offers a balanced combination of a low interest rate and a long payback period.
How do balance transfer credit cards work?
When used correctly, balance transfer credit cards function as a debt-financing tool. They can help you pay down existing high-interest credit card debt faster and for less.
When you transfer a balance, you move debt from one credit card to another. The best balance transfer cards offer low or no interest for a set introductory period, allowing you to pay down your debt without worrying about high accruing interest. This introductory APR period generally lasts between 12 months and 21 months, giving you a significant period of time to pay off your balance before the interest rate increases.
While a few credit cards offer no-fee transfers, most balance transfer cards charge you between 3% and 5% of the balance transferred. Typically, the longer the introductory 0% APR period, the higher the fee, and vice versa. So cards without a balance transfer fee have shorter introductory APR periods, and those with transfer fees have longer introductory APR periods.
Where can I find credit cards with no balance transfer fee?
We think the Wings Visa Platinum and First Tech Platinum cards are two of the best credit cards with no balance transfer fee. While both offer introductory APR offers, you will have to pay between $5 - $15 to become a member. This fee is relatively small compared to typical balance transfer rates, though. To compare, let's say you're transferring $5,000 in credit card debt -- a card with a 3% fee would charge you $150 to do so, while the Wings Visa Platinum and First Tech Platinum cards would only require a membership fee under $20.
That said, if you're already a member of a credit union, it may be worth asking if it offers a balance transfer card with a 0% introductory APR period and no balance transfer fee.
What are the benefits of a credit card with no balance transfer fee?
A credit card with no balance transfer fee lets you transfer a balance from one account to another without paying an upfront transfer fee, generally between 3% and 5%. The trade-off is a shorter introductory APR period for balance transfers.
A credit card with no balance transfer fee and a 0% APR offers a way to pay off high-interest credit card debt without paying a dime in interest or fees, but only if you can pay it off within one year. If you need more time, it might be better to consider a card with a balance transfer fee that has a longer no-interest or low intro APR period.
How do I decide if a credit card with no balance transfer fee is right for me?
The first step is to understand how large of a monthly payment you can afford each month. Then, calculate how much you'll pay in interest and fees with two or three different balance transfer credit cards.
Generally speaking, if you can pay off your debt in around 12 to 15 months, the 3% you save with a credit card with no balance transfer fee will be worth it. If it's going to take you 17 to 18 months or longer, a card like the US Bank Visa Platinum may save you more money in interest payments, despite the 3% transfer fee ($5 minimum). If you need more than two years to pay down your balance, the SunTrust Mastercard Prime Rewards may be your best option. Don't discount personal loans either -- if you owe a significant amount and need a few years to repay your debt, you may be able to lock in a personal loan for a lower interest rate than the SunTrust Mastercard Prime's introductory 3.25% variable APR on balance transfers (11.24% to 21.24% variable APR thereafter).
More credit card recommendations
*All information about the Wings Visa Platinum Credit Card, First Tech Platinum Mastercard, U.S. Bank Visa Platinum Card, and the SunTrust Prime Rewards Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
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