Balance transfer credit cards

By updated on April 24, 2014

Should you apply for a balance transfer credit card?  If you're like many Americans, you may have struggled with credit card debt for years or perhaps you've found yourself on an endless treadmill of making a minimum payment each month and never reducing the balance on your credit card. If your goal is to reduce your credit card debt, a balance transfer credit card may be one way to increase the speed of your debt reduction plan.

The primary reason to choose a balance transfer offer is to give yourself time to pay off the debt while getting relief from ongoing interest charges that add to that debt. Balance transfer credit cards frequently offer side benefits such as cash back rewards, airline miles or low interest rates on new purchases.

What are balance transfer credit cards?

A balance transfer card is very much like any other credit card: You make monthly payments on the debt, but the credit card company charges you a reduced (often zero) rate of interest for a set period of time. Once that time is up, you'll start paying interest on any remaining debt until the debt is fully paid.

The main feature of balance transfer cards is that the initial low interest rate is applied only to debt that is transferred from another credit card. You can use the balance transfer cards for future purchases; some cards offer reduced or zero APR for a limited time for new purchases as well. While most cards charge a fee for a transfer, typically 3 to 5 percent of the balance, a few cards waive this fee.

What should I look for in balance transfer offers?

The most important part of choosing a balance transfer offer is figuring out how long it will take you to pay off your balance. A credit card payoff calculator can be a big help when you are comparing balance transfer offers.

Here's what you need to compare:

  • Introductory APR
  • How long the introductory period lasts
  • The fee to make the transfer, if any
  • Interest rate for new purchases and for the remaining balance after the introductory period ends

The longer you can keep a low or zero introductory APR, the better the card offer. First, you need to decide how much you can afford to pay toward your credit card each month. For example, if you know you can pay off your balance within 12 months, then you can want to make sure you are comparing balance transfer offers that have a promotional period of at least 12 months.

Do I need good credit to transfer my balance?

Check your free credit report before applying for a balance transfer credit card. Even though balance transfer offers seem like a great idea if you're struggling with debt, credit card issuers typically require you to have excellent to good credit when you apply.

If your credit history has a few spots on it, you may need to spend a few months improving your credit score by making on-time payments and reducing your credit card debt before you can qualify for a balance transfer card.

Tips on balance transfer offers

When you apply for a balance transfer, you should carefully calculate how much you will need to pay each month in order to eliminate the balance entirely before the promotional period ends.

For example, if you transfer $2,000 to a credit card with zero percent APR for 12 months and a balance transfer fee of 3 percent, you will need to pay $172 per month to pay off the balance (plus the $60 transfer fee) within 12 payments.

Be careful not to rack up more credit card debt on your old card after you transfer your balance. It can be tempting to spend more if you have a credit card with a few thousand dollars of available credit, but this will put you in a worse position because you will now have two credit cards to pay off instead of one.

To truly benefit from a low introductory rate balance transfer, you need to be disciplined enough to continue making regular payments that are large enough to pay off your credit card debt in full before the promotional period expires. You may be tempted to pay less when you see the minimum payment drop along with your balance, but don't let that temptation sway you from your goal of reducing or eliminating your credit card debt.

 

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Can't find my card

Discover it®

Editor's Rating

  • Fair. No annual fee. No overlimit fee. No foreign transaction fee. Pay up to midnight ET online or by phone on your due date without a fee. Plus, paying late won't raise your APR.*
  • Generous. 5% cash back at Home Improvement Stores, Furniture Stores and Bed Bath & Beyond® on up to $1,500 in purchases from April through June 2014 when you sign up.*
  • Human. 100% U.S.-based customer service available any time. *Click "Apply" to see rates, rewards, and free FICO® Credit Score terms and other information.
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0% Intro APR

Balance Transfer Intro Period

18 months

Balance Transfer Fee

3% fee 

Purchase APR

10.99% - 22.99% Variable*

Annual Fee

$0 

Chase Slate®

Editor's Rating

  • Pay less interest. Save on balances and new purchases
  • $0 balance transfer fee -- introductory offer!
  • 0% Introductory APR for 15 months on purchases and balance transfers
Apply Now Credit Needed Good

Balance Transfer Intro APR

0% Intro APR

Balance Transfer Intro Period

15 months on balance transfers

Balance Transfer Fee

$0 balance transfer fee -- introductory offer! 

Purchase APR

12.99%, 17.99%, 22.99% Variable

Annual Fee

$0 

Discover it® card

Editor's Rating

  • Fair. No annual fee. No overlimit fee. No foreign transaction fee. Pay up to midnight ET online or by phone on your due date without a fee. Plus, paying late won't raise your APR.*
  • Generous. 5% cash back at Home Improvement Stores, Furniture Stores and Bed Bath & Beyond® on up to $1,500 in purchases from April through June 2014 when you sign up.*
  • Human. 100% U.S.-based customer service available any time. *Click "Apply" to see rates, rewards, and free FICO® Credit Score terms and other information.
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0% Intro APR

Balance Transfer Intro Period

14 months

Balance Transfer Fee

3% fee 

Purchase APR

10.99% - 22.99% Variable*

Annual Fee

$0 

Capital One® Platinum Prestige Credit Card

Editor's Rating

  • Transfer a balance for 0% intro APR until July 2015
  • Get 0% intro APR on all purchases until July 2015
  • Enjoy no annual fee
Apply Now Credit Needed Good

Balance Transfer Intro APR

0% intro on balance transfers

Balance Transfer Intro Period

until July 2015

Balance Transfer Fee

3% fee 

Purchase APR

10.9% - 18.9% (V) 

Annual Fee

$0 

Citi Simplicity® Visa® Card

Editor's Rating

  • 0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 12.99% - 21.99% based on your creditworthiness.
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
  • No late fees - EVER
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0%*

Balance Transfer Intro Period

18 months on Balance Transfers*

Balance Transfer Fee

3% of each balance transfer $5 minimum

Purchase APR

12.99 - 21.99% Variable

Annual Fee

$0* 

Citi® Diamond Preferred® Card

Editor's Rating

  • Get 0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the APR will be 11.99%-21.99% based upon your creditworthiness.*
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer.
  • Citi® Easy DealsSM Get what you want for less. Earn Citi Easy Deals Points for the purchases you make with your card. Redeem your points for great online deals on name-brand merchandise, gift cards and even local deals.
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0%*

Balance Transfer Intro Period

18 months on Balance Transfers*

Balance Transfer Fee

3% of each balance transfer $5 minimum

Purchase APR

11.99% - 21.99%* Variable

Annual Fee

$0* 

Barclaycard® Rewards MasterCard® - Average Credit

Editor's Rating

  • No annual fee
  • Earn 2 points per $1 on gas, grocery, and utility purchases and 1 point per $1 everywhere else
  • Use the points you earn like cash to pay for almost any purchases you've made.
Apply Now Credit Needed Average/Fair

Balance Transfer Intro APR

N/A

Balance Transfer Intro Period

N/A

Balance Transfer Fee

Either $10 or 4% of the amount of each transfer, whichever is greater. 

Purchase APR

24.99%* Variable

Annual Fee

$0 

Capital One® Quicksilver® Cash Rewards Credit Card

Editor's Rating

  • One-time $100 bonus after you spend $500 on purchases within the first 3 months
  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories and no sign ups needed to earn cash rewards
Apply Now Credit Needed Good

Balance Transfer Intro APR

0% intro on balance transfers

Balance Transfer Intro Period

until January 2015

Balance Transfer Fee

3% fee 

Purchase APR

12.9% - 22.9% (V) 

Annual Fee

$0 

Citi ThankYou® Preferred Card - Low Intro APRs

Editor's Rating

  • Enjoy 0% Intro APR on Balance Transfers and Purchases for 15 months. After that, the variable APR will be 12.99% - 22.99% based upon your creditworthiness*
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater*
  • 2 ThankYou Points per dollar spent on dining at restaurants and entertainment
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0%*

Balance Transfer Intro Period

15 months on Balance Transfers

Balance Transfer Fee

3% of each balance transfer $5 minimum

Purchase APR

12.99% - 22.99%* Variable

Annual Fee

$0* 

Blue Cash Preferred® Card from American Express

Editor's Rating

  • Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months.
  • Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period.
  • As an Amazon Prime member, you get unlimited FREE Two-Day Shipping on millions of items. Terms and Restrictions Apply.
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0% on Balance Transfers

Balance Transfer Intro Period

15 months

Balance Transfer Fee

See terms 

Purchase APR

12.99% - 21.99% Variable

Annual Fee

$75 

Blue Cash Everyday® Card from American Express

Editor's Rating

  • Get 50 Reward Dollars, redeemable for a $50 statement credit, after you make $1,000 in purchases with your new Card in the first three months.
  • Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period.
  • As an Amazon Prime member, you get unlimited FREE Two-Day Shipping on millions of items. Terms and Restrictions Apply.
Apply Now Credit Needed Excellent

Balance Transfer Intro APR

0% on Balance Transfers

Balance Transfer Intro Period

15 months

Balance Transfer Fee

See terms 

Purchase APR

12.99% - 21.99% Variable

Annual Fee

$0 

Chase Freedom®

Editor's Rating

  • Earn a $100 Bonus after you make $500 in purchases in your first 3 months from account opening
  • Earn a $25 Bonus after you add your first authorized user and make a purchase within this same 3-month period
  • 0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 13.99%-22.99%.
Apply Now Credit Needed Good

Balance Transfer Intro APR

0% Intro APR

Balance Transfer Intro Period

15 months on balance transfers

Balance Transfer Fee

3% fee $5 min

Purchase APR

13.99% - 22.99% Variable

Annual Fee

$0 

The savings is calculated by the editors of Cardratings.com and do not come from credit card issuers. The rates come from credit card issuers which have paid for a link to their website. Offers are subject to change without notice and may not be the same for all consumers.