Best Balance Transfer Credit Cards

All information about Citi Simplicity® Card, U.S. Bank Visa Platinum, Wells Fargo Platinum card and Wells Fargo Cash Wise Visa® card has been collected independently by CreditCards.com and has not been reviewed by the issuer.

How to find the right balance transfer credit card

Credit card debt for the American consumer can be crushing – consumer revolving debt, which is primarily card balances, surged in December 2019 by a whopping $12.7 billion, according to the Federal Reserve’s G.19 consumer credit report. Closer to home, New Mexico tops the states and Washington, D.C., in credit card debt burden, while Massachusetts has the least, according to our December 2019 CreditCards.com study of credit card debt by state.

Owing thousands of dollars on your credit cards can seem overwhelming, but it doesn’t have to be. Consolidate debt, make lower interest payments, or pay off an old purchase and save money to boot with a balance transfer credit card.

But balance transfer cards can confuse the newcomer, which is where we come in. We’ve compiled this guide to walk you through how balance transfers work, when they are a good idea, and which balance transfer credit card is best for your needs. Here, we look at:

• The best balance transfer credit cards
• Summary of the best balance transfer cards of 2020
• How we picked the best BT cards
• What is a balance transfer credit card?
• How to save money with a balance transfer card
• What features to look for in a card offer
• What is the cost of transferring a balance?
• How to compare two balance transfer cards
• 3 Expert Tips: Balance transfer credit cards
• Is doing a balance transfer a good idea?
• How to perform a balance transfer
• How long does a balance transfer take?

Best Balance Transfer Credit Cards

Citi® Diamond Preferred® Card

Best balance transfer credit card for balance transfers

This card’s very long balance transfer offer and relatively low ongoing APR earn it a top spot on our list of the best balance transfer cards. You can take advantage of a 0% introductory APR for 18 months while you pay down your transferred balance (the APR is 14.74%-24.74% variable after that). That means you’ll pay 0% APR into 2022. If you need some room to breathe, this card is a solid choice.

Pros

Along with its great balance transfer offer, this card also gets you a 0% introductory APR on new purchases for the first 18 months (14.74%-24.74% variable after that). This could be a lifesaver if you need to pay off larger purchases over time or if unexpected expenses pop up. Just pay the minimum due each month and you’ll avoid interest charges and fees for the first year and a half.

Cons

Our Diamond Preferred card review breaks down one of this card’s biggest flaws: It comes with no rewards program, so its long-term value will be limited. It also charges a balance transfer fee of 3% (or $5, whichever is higher), which could end up costing you more than a few extra months’ worth of interest.

Bank of America® Cash Rewards credit card

Best balance transfer credit card for everyday spending

The Bank of America Cash Rewards card offers a solid 3% cash back on a category of your choice, including gas stations, online shopping, dining, travel, drugstores or home improvement/furnishing purchases. Also, earn 2% cash back at grocery stores and wholesale clubs, plus 1% on all other purchases. You’ll earn 3% and 2% cash back on the first $2,500 each quarter, then earn 1%.

Pros

There’s no annual fee with this card, and the cash back you earn doesn’t expire. Also, earn $200 in online cash rewards after spending $1,000 in your first 90 days and get 0% intro APR offers on purchases and balance transfers made in the first 60 days for your first 12 billing cycles (then 13.99%-23.99% variable). Read our review.

Cons

There’s a limit in boosted earnings with the $2,500 cap each quarter in the 2% and 3% cash back categories (1% after threshold is met). Also, you’ll have to pay a 3% foreign transaction fee during overseas travel and on online purchases that are processed through foreign banks.

Citi® Double Cash Card

Best balance transfer credit card for cash rewards

This card beats all the competition with its flat-rate cash back offer of 1% back when you make a purchase and another 1% back when you pay for it. Other flat-rate cards typically pay 1.5% back. As our Citi Double Cash Card review puts it, “this makes it a great addition for any cash back lover, especially those who juggle several cards to boost rewards.”

Pros

The Double Cash Card’s 18-month zero interest offer on balance transfers (then a variable APR of 13.99% – 23.99% after that) is longer than other cash back cards, while the ongoing rewards are also better than most. In fact, this offer will take you well into 18 months.

Cons

There’s no 0% intro APR offer on purchases with this card, and the ongoing APR of 13.99% – 23.99% variable is one of the higher rates. There’s also no sign-up bonus offer.

Citi Rewards+℠ Card

Best balance transfer credit card for supermarkets and gas stations

In addition to rewarding 2 ThankYou points per dollar spent at supermarkets and gas stations (up to $6,000 per year in purchases, then 1 point per dollar), Citi will round up each purchase to the nearest 10 points. So your $3 coffee is worth 10 ThankYou points, your $12 lunch is worth 20 ThankYou points, and so on. The rewards rates are decent on their own, but they’re set apart by the unique round-up feature.

Pros

If you want to make a balance transfer without sacrificing rewards, the Citi Rewards+ Card is a great choice. The APR of 0% intro for 15 months on Balance Transfers is one of the shorter offers on the balance transfer market, but it still gives you more than a year to pay down debt with 0% interest. After that, the interest rate will be 13.49% - 23.49% (Variable).

Cons

This card currently offers a sign-up bonus of 15,000 ThankYou points to those who spent $1,000 in the first 3 months, which isn’t the most competitive offer. Similar cards, such as the Bank of America® Cash Rewards credit card, have slightly better welcome offers.

Wells Fargo Platinum

Best balance transfer credit card for 0% intro APR

It offers a long introductory APR period on both balance transfers and new purchases. You’ll get a 0% introductory APR on qualifying balance transfers and new purchases for the first 18 months (16.49% – 24.49% Variable after that), meaning that interest doesn’t kick in until into 2022. That gives you a lot of wiggle room as you pay down debt, tackle unexpected expenses and manage your ongoing spending.

Pros

The cellphone insurance stands out among this card’s best perks. Pay your cellphone bill with the card and you can be reimbursed up to $600 per claim and $1,200 per year should your phone be damaged or stolen (subject to a $25 deductible).

Cons

The balance transfer fee increases from 3% (or $5, whichever is greater) to up to 5% (or $5, whichever is greater) after the first 120 days. That said, a 3% balance transfer fee is lower than the fee charged by plenty of other balance transfer cards. The card’s ongoing APR is also a bit high, and as our Wells Fargo Platinum card review points out, “even cardholders who qualify for the lowest possible APR…could end up paying quite a bit on larger balances.”

Wells Fargo Cash Wise Visa® card

Best balance transfer credit card for sign-up bonus

Not only can you score $150 after spending just $500 in the first 3 months, you can earn bonus cash back on your digital wallet purchases in the first year: Along with the 1.5% cash rewards you earn on general purchases, you can earn 1.8% cash rewards on Google Pay™ and Apple Pay® purchases for the first 12 months. That’ll be especially good news if you’re concerned about the cleanliness of your credit card.

Pros

It comes with a solid introductory APR on both balance transfers and new purchases: Pay 0% for 15 months on new purchases and on qualifying balance transfers made in the first 120 days (13.99%-25.99% variable after that). You’ll also get $600 worth of cellphone protection against covered damage and theft when you pay your monthly phone bill with the card ($25 deductible).

Cons

The introductory APR only applies to balance transfers made in the first 120 days, and the card’s balance transfer fee increases from 3% (or $5, whichever is greater) to up to 5% (or $5, whichever is greater) after the first 120 days. Additionally, our Cash Wise Visa review notes that the card’s high-end ongoing APR is very high, so if your credit isn’t excellent, you may want to look elsewhere.

Citi Simplicity® Card

Best balance transfer credit card for no late fees

The card comes with an especially forgiving fee and penalty policy. Not only will you never be charged a late payment fee, your APR will never be jacked up due to late payments. Many cards charge a late payment fee as high as $40, and can hit you with a penalty APR of 29.99% if you frequently pay late.

Pros

The card boasts a competitive balance transfer offer: You’ll get a 0% introductory APR for 18 months on balance transfers, taking you well into the year 2022, and 18 months on new purchases (14.74%-24.74% variable APR thereafter). This makes it valuable both for paying off existing debt and managing ongoing expenses.

Cons

As our Citi Simplicity card review lays out, the card’s balance transfer fee of 3% (or $5, whichever is higher) could be costly. While this may be worth it if you want as much time as possible to pay off your transferred balance, some charge no balance transfer fee at all.

U.S. Bank Visa Platinum Card

Best balance transfer credit card for good credit

This card offers one of the longest introductory APR periods on both new purchases and balance transfers (20 billing cycles, 13.99%-23.99% variable APR thereafter), making it one of the best offers among balance transfer cards that allow you to pay no interest until into 2022. If you’re a cardholder with a good or excellent credit score looking to pay down debt or finance a large purchase, this card is worth considering.

Pros

Not only will you be offered the generous introductory period (which can help you save on interest charges), you won’t have to pay an annual fee or a penalty APR. Plus, you’ll gain access to tools that can help you manage your credit usage, like free access to your TransUnion credit score and the ability to choose your payment date.

Cons

You won’t reap many benefits with this card. There is no welcome offer, signup bonus or rewards structure. So, after that introductory period is over, the card loses much of its value. If you’re looking to earn some cash back with a balance transfer card, the Citi® Double Cash card may be a better fit.

PenFed Gold Visa Card

Best balance transfer credit card for low interest

The PenFed Gold Visa offers a quite low interest rate on new purchases based on your creditworthiness when you open your account (7.49%-17.99% variable APR). You’ll be hard-pressed to find that low of an interest rate elsewhere.

Pros

Along with offering one of the lowest intro APRs on new purchases, the 0% balance transfer period can be a great way to start paying down a balance (0% for 12 months, fixed rate APR 17.99% thereafter; offer valid through 3/31/21).

Cons

You need to be a member of the Pentagon Federal Credit Union to apply. While you do not need to be a member of the military to qualify for a PenFed membership, you do need to open a PenFed checking or savings account.

Compare the best balance transfer cards of 2020

The best balance transfer credit card is the Citi Simplicity Card with its 0% intro APR offer of 18 months on balance transfers (then 14.74% – 24.74% variable). All of the cards in the following table have no annual fee.

How we picked the best balance transfer credit cards

Number of cards analyzed: 1,002

Criteria used: 0% intro APR period for balance transfers, balance transfer fees, regular APR, savings period, current APR assumption, monthly payment assumption, other rates and fees, customer service, credit needed, security, ease of application, potential rewards, miscellaneous benefits

Ranking methodology: While a large number of factors contribute to the quality of a credit card, the following were our most important criteria in evaluating and choosing the best balance transfer cards: length of 0% intro APR period; balance transfer fee; regular APR after intro period; annual fee.

What is a balance transfer credit card?

A balance transfer card allows you to transfer balances on older cards to a new card.

That may sound like you are just moving balances from card to card. So why would you get a balance transfer card? Quite simply, they often come with a temporary 0% interest rate. This can easily save you hundreds of dollars, provided you pay the bulk of the debt before the 0% APR offer ends. Offers can be for 6 months to 21 months.

If you don’t pay off the balance before the offer ends, the go-to rate, usually the regular APR, kicks in. But it’s not deferred. So, if you have a $3,000 balance, and you pay $2,400 before the offer ends, you will only pay interest on the remaining $600.

Most balance transfer credit cards have a balance transfer fee, so that’s something to consider. They are often 3% or $5, whichever is greater. Even when a card has a shorter offer period, it can be worth your while if there is no balance transfer fee.

Many balance transfer cards have no annual fee, and they sometimes offer welcome and ongoing rewards. However, they frequently have foreign transaction fees or other charges to consider.

Check out our comprehensive guide to credit card balance transfers for an in-depth look at what balance transfers are, how they work and how you can make the most of yours.

How to save money with a balance transfer card

Let’s say you owe $3,000 and you can pay $200 a month toward the balance with 15% interest. Without a balance transfer card, you will pay $344 in interest fees, according to our CreditCards.com balance transfer calculator.

But with a balance transfer card such as the Citi® Diamond Preferred® Card, you would pay 0% interest for 16 months, paying off the balance in those 16 months and saving $253 after the cost of the balance transfer fee. That’s because the Diamond Preferred offers 0% intro APR for 18 months (then it’s 14.74%-24.74% variable).

Heads up that with our calculator, you can add your current card balances, APRs, issuers and monthly payments to see how much you could save on interest and how long it will take you to pay off your balance. You’ll also get personalized card recommendations.

Use CreditCards.com’s balance transfer calculator to calculate savings

Our balance transfer calculator is a great starting point and should help you decide if a balance transfer makes financial sense for you. You can add your current card balances, APRs, issuers and monthly payments to see how much you could save on interest and how long it will take you to pay off your balance. You’ll also get personalized card recommendations.

How much does a balance transfer cost?

To help you understand your break-even point on the cost of a balance transfer, let’s crunch some numbers.
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Most cards charge a balance transfer fee of 3% or $5, whichever is greater. In that case, if you were transferring a balance of $100, your balance transfer fee would be $5 (3% of $100 is just $3, so you’d pay the higher charge of $5). On the other hand, if you transferred a $1,000 balance, your balance transfer fee would be $30 (3% of $1,000).
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Here’s the next question: Is it worthwhile to transfer a balance as small as $100? In a word: No. Here’s why. If you pay $35 a month (at 17% interest), you will pay it off in 3 months and your interest will be $2.82 – less than the $5 fee you’d pay to transfer the balance. That means if you can pay your debt off in 3 months or less, it’s not worth making the transfer.
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Is a balance transfer worth your while when the balance is $1,000? Well, if you can pay $343 in 3 months (at 17% interest), your interest charges will be $28, making it less than the balance transfer fee for the same amount. So in that case, you shouldn’t make the transfer. But if you can’t afford to make such a high monthly payment, a balance transfer will be worth it, since the amount you’d save on interest charges would exceed the balance transfer fee.

Know what to look for in a balance transfer credit card

To make the most of your balance transfer, keep these key elements in mind:

• Lengthy 0% interest offer – Make sure you know how long of an offer you need in order to pay off the balance before the 0% intro APR offer ends.
• No balance transfer fee – A few credit cards offer no balance transfer fee. Do the math to decide if it’s worth your while to get one of those cards, because there may be disadvantages, such as no rewards.
• No annual fee – Most balance transfer cards have no annual fee, but a few do, so be mindful.
• Rewards – You’ll need to weigh whether you want a super-lengthy intro APR offer such as the Citi Simplicity or rewards for the long term.
• Low regular APR – A number of card issuers, such as Discover, offer a low regular APR after their balance transfer offers end.

How to compare two balance transfer card offers

When you are looking at landing a balance transfer card, you don’t want to stop at studying the payment terms. You also want to look at how much you can pay each month, fees and other considerations. There are also a few balance transfer credit cards without a balance transfer fee, for example. Not sure which to choose? Let’s dive in and compare a couple of cards, in this case, the Navy Federal® Platinum Credit Card and the Citi® Diamond Preferred®.

How much can you afford?

First things first. Figure out how much you can pay down every month toward your balance. The more the better; ideally you want to pay more than the minimum. As an example, let’s say you owe $3,000 and you can pay $200 a month. (If you are paying at a rate of 15%, you would pay $344 in interest over 17 months.)

The Navy Federal Platinum’s required minimum payment is $20 or 2%, whichever is greater. That means you would need to pay at least $60 a month, so if you pay $200, you are paying well beyond the minimum.

In the case of the Citi Diamond Preferred, the required minimum payment is $25 or 1.5%, whichever is greater. That means in this case, your minimum is $45.

What is the balance transfer offer?

The Navy Federal Platinum offer is 0% intro APR for 12 months on balance transfers, then 5.99%-18.00% variable. So while the 0% APR period can be easily beaten, the regular APR starts out incredibly low.

Contrast that with the Citi Diamond Preferred: Get 0% intro APR on balance transfers for 18 months, then it’s 14.74%-24.74% variable. In other words, it has a top-notch 0% intro APR offer, but the regular APR is much higher.

Is there a balance transfer fee?

A precious few credit cards offer no balance transfer fee, and the Navy Federal Platinum is one of them. Compare that to the Citi Diamond Preferred, which has a fee of $5 or 3%, whichever is greater. That means you’ll pay $0 with the Platinum and $90 with the Diamond Preferred to transfer that $3,000. Read about our January 2020 balance transfer survey.

How much will you save?

Figuring out your savings with the Diamond Preferred is super straightforward: Pay 0% APR for 16 months to pay off the $3,000 as well as the balance transfer fee of $90, saving $253 in interest charges.

It’s a little more complicated with the Platinum. You’ll pay $16 in interest for 4 months, since the 0% APR won’t last the entire payment period, but you don’t pay a transfer fee.

Putting it all together…

Other things to consider are rewards, such as sign-up bonuses, and other fees, such as annual fees and foreign transaction fees.

Is a balance transfer a good idea?

In addition to concerns about our health and our economic security right now, we may have existing card debt. A balance transfer card is a good idea when you have a credit card balance and you are stuck paying interest each month because you can’t pay off the debt.

If you came into the COVID-19 crisis with card debt, you may feel overwhelmed financially. For now, we recommend that rather than prioritizing your card debt, balance building an emergency budget if possible while also paying down the card debt.

A balance transfer card is not a good idea if you think you might use it to incur additional debt because you have trouble with overspending. Instead, create a budget that sets some money aside for your card debt and also some aside for emergencies.

When is a balance transfer credit card a good choice?

Avoid paying high interest

If you want to avoid interest rates, a balance transfer credit card is a great way to achieve that. Keep in mind that you will pay interest on any balance you have after the offer ends (typically 6-18 months), but if you can pay off the debt before that, you can save hundreds of dollars.

Consolidate debt

With a balance transfer card, you can consolidate debt from multiple cards, then pay a single bill each month. You might do this for convenience or for budgeting purposes.

Improve your credit score

Once you’ve paid off your balance, you will have improved a number of aspects of your credit score, including your credit utilization ratio. You will also have a higher overall credit limit. By expanding available credit and paying down debt, you can improve your score.

When should I avoid a balance transfer credit card?

You keep making late payments

Pro tip: Set up an automatic payment through your bank and schedule it a few days before your due date to be on the safe side.

You keep incurring debt

Pro tip: Track your spending for a month, forgetting nothing. Then make a budget that includes room for fun and room for emergencies. Why? Because if your budget is too austere, you are more likely to break the bank. Do the same with your credit card spending, and check your spending every week to make sure you are on track.

You would not pay off before the offer ends

Pro tip: Instead, look at cards with longer offers, which can be up to 18 months. That will allow you to pay a little less each month, and at the same time avoid interest. You’ll likely have to forego the shiny object of rewards – you need to choose your priorities, and paying down debt should be your first consideration.

You owe a small amount

Pro tip: Because most BT cards have a balance transfer fee of up to 5% of the transfer, you may want to opt out of a balance transfer card and pay down the debt quickly. Check with your card issuer to see if they will lower your interest rate. We’ve found that chances are, they will.

You have options

Pro tip: Depending on your situation and the offers available to you, it might make more sense to consolidate your debt with a personal loan.

Does a balance transfer hurt your credit score?

While a balance transfer can negatively impact your credit score in the short term, in the long run you will be better off if you use it correctly. Here is how your credit score can be impacted:

• When you apply for the balance transfer card, your score takes a temporary hit of about 5-10 points, but it will recover within a couple of months.
• Don’t cancel your old card, because that will lower your overall ratio, thereby impacting your score. Also, if it’s an older card, you lose that card’s length of history, another factor in your score.
• Your score factors in cards’ ratios of what you owe to your available credit; this is called your credit utilization ratio. Say you have a $10,000 credit limit on your new balance transfer card, and you transfer $5,000. That means the ratio for that card is 50%, which is considered quite high and could negatively impact your score. That’s one reason why you want to pay down the debt as soon as possible.
• Finally, and this is less of an issue if you have older cards, but when you take out a new card, that can impact your score somewhat because it lowers your overall length of history.

If you take out a balance transfer card, work to pay off the balance before the intro offer ends and keep the old card without incurring more debt, your score will get a boost in the long run.

Who can qualify for a balance transfer credit card?

Most cards that feature introductory APR offers require you to have good or excellent credit in order to qualify. While it’s possible to do a balance transfer with bad credit, whether it’s wise will depend on which cards you can qualify for and what your new APR will be. A balance transfer could also hurt your credit score, as it could both increase your single-card credit utilization and lower your length of credit history. You may be better off taking out a debt consolidation loan or focusing on paying down your balances as much as possible before you apply to improve your credit score.

How to perform a balance transfer

If you’re considering a balance transfer card, you may be wondering how much work goes into moving the balance from one card to another. Overall, the process is relatively simple on the end of the cardholder. Here are the steps you should follow:

1. Apply for a balance transfer card – Before choosing a card, check out our balance transfer calculator, which factors in fees and interest rates to determine how much you’ll save by transferring your existing balance to a different card. Once you find the balance transfer card that best suits you, complete the card application.
2. Get approved – Typically balance transfer and 0% intro APR cards require good or excellent credit. Only apply for a card if you have the requisite credit, and don’t apply for multiple cards at once, because it can make you look desperate.
3. Check the rules – Pay attention to the rules, because some cards require the transfer to be made within 60 days of approval.
4. Collect your information – Next, gather the account details for the card that has the debt – referred to as the “transfer from” card – including the account number and card balance.
5. Contact customer service – After receiving your balance transfer card, call customer service and inform them that you want to transfer a balance onto your new card. Once you provide them with the necessary information, they will reach out to the old card company and move the requested amount onto your new card. Many cards also allow you to make balance transfers through your online account, but we advise that you wait until you receive the physical card to initiate a balance transfer. That way, once you receive the card, you can ask for a higher line of credit if the approved amount is below the old balance.
6. Keep paying the minimum – We recommend that you pay the minimum amount on your old card until the transfer closes to avoid late fees and other penalties.
7. Avoid new, unplanned charges – While you might have a card that offers 0% APR on new purchases for a limited time, make sure you have a plan before you use it. That way, you don’t go into further debt.

How do I transfer a credit card balance and how long will it take?

A balance transfer can take a few days or several weeks, depending on the card issuer. And yes, the transfer itself can vary by issuer, too. So, we’ve scooped up some links and details that should help you through the process: