Comparing Balance Transfer Credit Card Offers
Updated: June 19, 2019
In a recent poll, we found that almost half of American adults wrongly thought that you could not transfer a balance to a new card and pay 0% interest for more than a year. In fact, there are numerous credit cards that offer balance transfers with 0% APR for a year or longer.
Balance transfer credit cards are a good option if you are trying to consolidate debt, make lower interest payments, or find time to pay off an old purchase. Nonetheless, a balance transfer can be a confusing process for those who have not gone through it before (and even for those who have). That's why we've compiled this guide to walk you through how balance transfers work, whether they're right for you, and which credit cards are best for balance transfers if you choose to pursue one. Here, we look at:
Best balance transfer credit cards of 2019
The best balance transfer credit card is the Discover it Balance Transfer due to its lengthy 0% intro APR offer of 18 months on balance transfers (then 14.24% - 25.24% variable). The Wells Fargo Platinum Visa is another great credit card that can help you save money with its interest-free period of 18 months and low regular APR of 13.74% - 27.24% variable.
How we picked the best BT 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: A good balance transfer card should have an introductory 0% APR period of at least 15 months. In a few cases, a card with a shorter intro offer may be worth it for its other benefits but if balance transfers are your primary intended use, then the longer the better.
- Balance transfer fee: If you have a large balance to transfer, this fee can become quite costly. We only considered credit cards with balance transfer fees of no more than 5%.
- Regular APR after intro period: Ideally, you want to pay off your balance before the 0% intro APR period is over. However, if this is not possible then you should keep an eye out for cards with reasonable regular interest rates.
- Annual fee: The entire point of a balance transfer credit card is to avoid paying more than you have to; paying an annual fee would run counter to that goal. The best balance transfer credit cards have no annual fee – you'll notice that we've eschewed cards that charge such a fee in compiling our list.
Here is our breakdown of the top balance transfer credit cards that can help you save on interest.
Best balance transfer cards with 0% APR offers
Discover it® Balance Transfer
Analysis: The Discover it Balance Transfer gives you an excellent 18-month 0% intro APR on balance transfers (14.24% - 25.24% variable APR), as well as 5% back on select rotating categories up to the quarterly max each time you activate, and cash back match at the end of your first year. It's important to stay on top of any new purchases so you don't carry a balance that incurs interest charges. As long as you pay down at least the balance of the new purchases after the first 6 months and before 18 months, you won't incur interest, and you'll fully benefit from the cash back. So, if you spend $500 a month on select categories, you can earn $600 – $75 a quarter for your purchases plus $300 at year end.
Annual fee: $0
Balance transfer fee: 3% intro, up to 5% on future balance transfers (see rates and fees)
Bottom line: If you're looking for a card with a generous intro APR on purchases, look elsewhere – this one has a paltry 6-month 0% APR (then 14.24% - 25.24% variable). But with a generous balance transfer offer and rewards, this card can be a great addition to your wallet.
U.S. Bank Visa® Platinum Card
Analysis: The U.S. Bank Visa Platinum card offers one of the best 0% introductory APR offers on the market right now at 20 billing cycles, which is phenomenal if you need more time to pay off an outstanding balance. The variable APR of 14.74% - 25.74% also starts relatively low, so if you have excellent credit and need to carry a balance, it is a reasonable interest rate among low interest credit cards.
Annual fee: $0
Balance transfer fee: 3% ($5 minimum)
Bottom line: This card should be one of your go-to choices if you have excellent credit and need to pay off a balance over an extended period of time.
Citi Simplicity® Card - No Late Fees Ever
Analysis: With a 0% intro APR for 21 months on both balance transfers and purchases, there's plenty to love about this card (it's 16.99%-26.99% variable after that). Add to that, there's no annual fee, no penalty rate and no late fee.
Annual fee: $0
Balance transfer fee: $5 or 5% (whichever is higher)
Bottom line: If you're looking for the best 0% offer on the market, you've come to the right place. For rewards, look elsewhere.
Wells Fargo Platinum Visa card
Analysis: This card has the unusual feature of 0% APR for 18 months on both purchases and qualifying balance transfers. The regular APR weighs in at 13.74% - 27.24% variable, so you'll want to pay off your balance before 18 months end. Also keep in mind that you must make your balance transfers within 120 days in order to qualify for intro rates and fees. During the first 120 days, the balance transfer fee is a lower 3%, but goes up to 5% after that. You can also get up to $600 protection on your cellphone (with a $25 deductible) for covered damage and theft when you pay your cell bill with this card.
Annual fee: $0
Balance transfer fee: 3% for 120 days, then 5% ($5 minimum)
Bottom line: This card an unusually long 0% intro APR offer; just make sure you are aware of the caveats and pay off your balance before the regular APR kicks in.
BankAmericard® credit card
Analysis: All in all, this credit card is fairly straightforward. Its 0% APR period is a solid 18 billing cycles (then 15.24% - 25.24% variable) when transferring within the first 60 days. This allows for plenty of time to pay off purchases and balance transfers. Importantly, there is no penalty APR, meaning that your APR won't go up automatically if you pay late (although you should still always avoid paying late to avoid a hit to your credit). Beyond that, there are not a ton of fancy benefits, but one noteworthy feature is access to your FICO credit score for free.
Annual fee: $0
Balance transfer fee: 3% ($10 minimum)
Bottom line: If you need a balance transfer card that gets the job done and you don't mind the lack of bells and whistles, the BankAmericard is a good choice.
Citi® Double Cash Card
Analysis: A few balance transfer cards double as cashback cards, and this card is a good option if you want to earn the same amount on all purchases. With the Citi Double Cash, you earn 1% when you make a purchase, then another 1% back when you pay it off. Add to that, the Citi Double Cash offers a great 18-month 0% intro APR (after that, 15.74% - 25.74% variable APR applies), although there's no 0% APR on purchases.
Annual fee: $0
Balance transfer fee: 3% or $5 (whichever is higher)
Bottom line: The balance transfer fee is a little lower than other cards, at 3% or $5, whichever is greater, and the balance transfer offer is competitive. Unfortunately, it's no go on 0% APR on purchases.
Chase Freedom Unlimited®
Analysis: This card offers a respectable 15-month introductory offer of 0% APR on purchases and balance transfers (then 17.24% - 25.99% variable). The card's primary emphasis is on cash back, where it is one of the most popular credit cards.
Annual fee: $0
Balance transfer fee: 3% ($5 minimum)
Bottom line: The Chase Freedom Unlimited is a decent balance transfer card with a heavy focus on earning cash back. For balance transfers, there are credit cards with more favorable rates.
Capital One® Quicksilver Cash Rewards Credit Card
Analysis: While the Quicksilver's 0% intro APR on purchases and balance transfer is 15 months, the regular APR ranges from 16.24% - 26.24% variable. It has a flat rate on all purchases of 1.5% cash back and there's also a $150 cash bonus after a $500 spend within the first 3 months of opening your account.
Annual fee: $0
Balance transfer fee: 3%
Bottom line: The Quicksilver' is good for balance transfers—thanks to its long introductory offer—and comes with a nifty sign-up bonus. Also, there's a flat rate of 1.5%, so you don't have to think about what types of purchases you are making.
Blue Cash Everyday® Card from American Express
Analysis: This card boasts excellent value alongside its 15-month 0% intro APR on both purchases and balance transfers. The regular ongoing rate of 15.24% - 26.24% variable applies after the intro period ends. The BCE's rewards stand out, as you can earn 3% cash back at U.S. supermarkets on up to $6,000 of purchases per year before it goes to 1%. You earn 2% at U.S. gas stations and U.S. department stores, and 1% on all other purchases.
Annual fee: $0
Balance transfer fee: $5 or 3% (whichever is higher)
Bottom line: While the BCE is mainly known as a great cash back credit card, it also offers very solid terms and rates that make it competitive with other top balance transfer cards.
HSBC Gold Mastercard® credit card
Analysis: This card boasts an excellent offer with its 18-month 0% intro APR on both purchases and balance transfers. The regular ongoing rate of 13.24%, 17.24%, or 21.24% variable applies after the intro period ends. The HSBC Gold's versatility stands out, as it carries no penalty APR, no annual fee, and no foreign transaction fees.
Annual fee: $0
Balance transfer fee: 4% ($10 minimum)
Bottom line: This card is good for consumers looking for flexible terms and low regular interest rates alongside a strong intro APR offer.
What are balance transfer credit cards and how do they work?
A balance transfer card is a product that allows you to transfer balances on older cards to the new card, often with a temporary 0% rate. This can easily save you thousands of dollars, provided you pay the debt in full with your new card. If you don't, when the 0% offer ends, the interest will spike at as much as 25% and even more, depending on your payment history and credit score.
Paying interest can be slippery slope because you aren't paying it yearly, meaning 15% on $1,000 doesn't come to a flat $150 in interest. Instead, interest on credit cards is calculated and compounded daily. So 15%, divided by 365 (days in the year) or .041096%, becomes 41 cents the first day. So, your balance the second day is $1,000.41, which is then used to calculate the interest for the second day. That means your debt comes to $1,013 at the end of your first month.
Card debt for the American consumer can be crushing – it averaged $8,022 per bank card (including retail cards) in our recent survey on credit card debt by state, up from $6,354 in 2017 (according to Experian).
What we found with our study was that the states topping the list of the greatest debt burden were weighed down by not only hefty debt, but also low household incomes:
3 states with most card debt burden…
|2018 rank||State||Total card balance||Monthly payments with 15% interest||Months to pay off||Total interest paid|
|1||New Mexico||$8,323||$584.30||17 months||$1,319.59|
|3||West Virginia||$7,563||$543.36||17 months||$1,167.14|
Source: CreditCards.com Card Debt Burden Study
Meanwhile, we found that the states with the least debt burden had a higher median household income: Massachusetts, Wisconsin and Minnesota, with Massachusetts having the least debt burden.
If you find yourself strapped with interest charges and a cycle of never-ending debt, there is a way to pull yourself up and out, and that is with balance transfer cards.
How do balance transfer credit cards work?
Balance transfer cards are credit cards that allow you to move debt from one card to another – essentially paying off credit card “A” with new credit card “B.” Typically, a person will transfer his or her balance to a card with a lower interest rate, allowing them to save money on monthly payments or pay off the balance more quickly. For example, if you're paying 12 percent interest on a $3,000 debt, you will have to pay $560 per month for six months to pay off the balance. If you transfer that $3,000 balance to a card that doesn't charge interest for the first six months, your payments will be $500 – for a savings of $60 each month.
Common strategies to manage debt
Given the benefits of balance transfer cards, it was a bit of a shocker for us to find out in our December 2018 debt poll that only 15% of those with a plan for their card debt would consider using a balance transfer card to address the problem. Yet, used correctly, they are an excellent tool for recovering from card debt. Here's more on what our study found:
Ways consumers who have a plan would deal with card debt...
- Paying substantially more than the minimum monthly payment
- Paying a little more than the minimum monthly payment
- Transferring my balance to a different credit card with a lower rate
- Asking my credit card issuer for a lower interest rate
- Taking out a personal loan to reduce/eliminate/consolidate my credit card debt
- Debt settlement (creditor agrees to accept less than you owe)
- Engaging with a debt/credit counselor
Source: CreditCards.com December 2018 debt poll
As CreditCards.com industry analyst Ted Rossman points out, "Balance transfer credit cards are an excellent tool for getting out of debt at the lowest possible cost. At present, the best offers are 0% interest for 21 months (with a 5% transfer fee) or 0% interest for 15 months (with no transfer fee). Take advantage of these promotions and be careful to avoid running up more debt once you've worked so hard to get out of it."
How do balance transfer fees work?
Most balance transfer cards charge a balance transfer fee that is typically 3%-5% or $5-$10, whichever is greater. When you request a transfer, you will likely be allowed to transfer up to 100% of your credit limit, minus the fee.
There are some cards that offer no fee, however. We found in our January 2019 balance transfer survey that there was actually an increase in no-fee balance transfer cards – of 100 cards, 15 balance transfer cards offer no-fee transfers, up from 9 in our December 2017 survey. In the 2019 survey, 8 others offer either an introductory lower fee or waive the fee entirely if you make the transfer in a set amount of time. Sometimes the waived fee comes after the introductory offer ends.
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:
- 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.
- 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.
- 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.
Balances can take up to 6 weeks to transfer, so we recommend that you pay the minimum amount on your old card until the transfer closes to avoid late fees and other penalties. Also, be sure to transfer your balance before the card's introductory offer ends.
How long does a balance transfer take?
As you might expect, your process doesn't end with getting your new balance transfer card. Now, you'll need to transfer the balance from the old card, and the amount of time it takes can vary widely, depending on the card issuer and whether your balance transfer card is a new or old account.
American Express has one of the longest transfer periods – 6 weeks – while it can take as little as 3 days with a Capital One card. Here is the expected wait time for 5 major card issuers.
Source: CreditCards.com research
Is a balance transfer card right for me?
For those struggling under the weight of heavy credit card debt, a balance transfer card can offer a great opportunity to lower your interest payments and pay off your debt more quickly. If you have debt, perhaps from going overboard with gifts for the kids, you may have thought about getting a balance transfer card. However, a balance transfer isn't always the best way to address your old balance. There are a few important things to consider before making your decision.
First, determine if you can pay off your current balance quickly. If you can pay your current balance off in six months or less, transferring your debt may not be worth it.
Second, consider your credit score. If your credit score is below 670, or below "good" credit, you most likely will not be approved for a low interest balance transfer offer or a 0% introductory offer. Remember: The main reason to transfer your balance to a different card is to get a lower interest rate.
Finally, it is important to be a responsible cardholder. If you have a difficult time making credit card payments on time, you should think twice about getting a balance transfer card. In addition to racking up expensive late fees, issuers will typically cancel any promotional interest rate offers if you pay your bill late – meaning, you could be responsible for high interest payments right away.
If you can pay off your balance within the promotional period of your new card before interest rates rise, then balance transfers are a helpful tool. But if you don't think you'll be able to pay off your debt soon after transferring your balance, you should consider alternative options, such as:
- Double down on payments. If your balance is already on a low-interest card, you might consider doubling down on payments and get rid of the debt quickly to minimize interest charges. This is also applicable for other forms of low-interest debt, such as student loans.
- Talk to your card issuer. You may be able to reach your goal without getting a new credit card. Talk to your current card issuer about lowering the interest on your card, which would save you the cost of a balance transfer fee.
- Get a personal loan. Depending on your situation and the offers available to you, it might make more sense to consolidate your debt with a personal loan. Each option has pros and cons, so weigh your options before you decide.
Here are a few pros and cons of using a balance transfer card.
- Increase overall credit limit – By taking out a BT card after buying that new freezer, for example, you are increasing your credit limit. This automatically decreases your overall credit utilization ratio, which is a good thing because that means you have a higher limit compared to the same amount of debt. This is assuming you don't incur new debt and you keep your old card.
- Consolidate monthly payments – Instead of keeping track of several card balances and different payment due dates each month, you can streamline your payments by transferring debt from various cards to a single card.
- Save money on interest - You can save money on interest and pay off your debt faster when you transfer your balance from a high-interest card to one with a promotional 0% interest rate. Specifically, you should aim for 0 APR credit cards rather than just a card with lower interest than your current one. According to Rebecca House of American Financial Solutions, "One of the most common things I see is people using balance transfers to lower payments rather than to get out of debt. If you are transferring a balance solely for lower interest, you may be setting yourself up for financial failure. Use a zero percent interest rate to focus on getting out of debt and have a plan for making that goal a reality."
- Transfer non-credit card debt – Balance transfers are not limited to credit card debt. You may also be able to transfer car loans and monthly installment payments from appliances, furniture and more.
- Possible negative impact on your credit score – While transferring a balance won't necessarily affect your credit score, applying for a new balance transfer card will.
- Additional fees – Many balance transfer cards charge balance transfer fees.
- Exposure to more debt – Once you transfer your balance to a new card, you may be tempted to continue racking up debt on your old credit card. Additionally, if you don't have a plan in place, you risk carrying your old debt with a higher interest rate should you fail to pay it off before the 0% offer ends.
- You may get a higher interest rate – If you don't have excellent credit, you typically won't be approved for promotional interest rates. Instead, you will only qualify for the regular, higher interest rates.
How to compare two balance transfer cards
When comparing balance transfer cards, your gut may tell you to choose the card with the longest introductory period. You're not entirely wrong, but there's another very important consideration: The balance transfer fee. Most balance transfer cards charge a 3% to 5% fee to transfer a balance, which can add up to $100 or more in fees if you have a large balance to transfer.
There are a few cards – such as the Amex EveryDay®* Credit Card – that don't charge a fee for your initial balance transfer within 60 days of account opening. So, which is a better way to go? A no-fee balance transfer offer, or a card with an especially long introductory period? Most of the time, the no-fee card wins out. Here's the math to help you decide:
Step 1: Figure out your payment terms
Before you start comparing balance transfer cards, you need to figure out the following:
- What size balance do you want to transfer? Keep in mind that your new card will come with a credit limit that may restrict the amount that you're able to transfer.
- How much can you afford to pay each month? While it's a good idea to pay down your debt as quickly as possible, you should come up with a manageable amount.
Step 2: Calculate fees and interest
Once you know the size of the balance transfer and the installment amount, you need to calculate the fees and interest for each card. Basically, you need to calculate how much of a balance remains for each card once the introductory period expires (don't forget to add the card's balance transfer fee to the initial balance), and then calculate the interest that you will owe each month until the balance is paid off.
Step 3: Compare fees and interest on each card
Using the same balance transfer amount and installment payment, calculate the fees and interest for both cards, then compare the amounts side by side.
For example, in the table below, we compare the costs of transferring a $5,000 balance to the Discover it Balance Transfer card and the Amex EveryDay* cards with a repayment period of 21 months. Even though the introductory period on the EveryDay is shorter, you would save more than $100 with it in this scenario, due to its waived balance transfer fee.
|Cost of a $5,000 balance transfer over 21 months|
|Discover it Balance Transfer card|
0% intro APR for 18 months on balance transfers (then 14.24% - 25.24% Variable), 3% intro balance transfer fee (then up to 5%, see rates and fees)
|Amex EveryDay* card|
0% intro APR on balance transfer for 15 months (then 15.24% - 26.24% Variable), $0 intro balance transfer fee if made within 60 days of account opening
|Monthly payment = $250|
3 months interest (18.74% APR) = $19.14
Balance transfer fee = $150
Total paid = $5,169.14
|Monthly payment = $250|
6 months interest (18.74% APR) = $61.93
Balance transfer fee = $0
Total paid = $5,061.93
Credit cards without a balance transfer fee
- Amex EveryDay* card - within the first 60 days
- Chase Slate® card** - within the first 60 days
Step 4: Compare the cards' remaining features
Finding the card that will cost you the least to pay down your balance should be your first priority. However, if all else is equal between the cards, you should look at remaining features on the cards to see if either is worth holding onto in the long run. For instance, the Discover it Balance Transfer card from our example has a very valuable cash back program. You can enroll every quarter to earn 5% cash back on up to $1,500 in purchases made in various categories throughout the year.
Tips on using balance transfer cards
Balance transfer cards can be an excellent savings tool, but they also tend to carry high APRs, which can be a pitfall if you aren't diligent in paying down your balance. Here are a few tips to keep you from digging yourself into more debt:
Figure out the best amount to transfer
Usually it makes sense to transfer as much of your debt as possible onto a 0% card to minimize your interest payments – but not always. Balance transfer cards usually carry higher-than-average APRs, and if you can't repay the balance before the introductory period, it could potentially cost you more in interest rates and fees than if you leave the balance where it is. If your current account has a lower interest rate, you should do some math to figure out whether transferring all of your balance or just a portion of it will cost less.
Pay your bill on time
Be sure to send your payment by the due date to avoid penalty fees. Set up an automatic payment through your bank and schedule it a few days before your due date to be on the safe side.
Try to pay it off before the introductory period expires
You should try to pay off your balance before the regular APR kicks in. However, you should also take into account balances on other cards. You may want to focus on paying down accounts with higher interest rates first, and then make larger payments toward your 0-percent card once you've paid off your other accounts.
Keep your old card open
Don't close down your old account once you've transferred your balance from it, especially if you've had it for a long time. Doing so could significantly lower your credit score, by lowering the average age of your accounts and raising your credit utilization ratio. However, you don't want to incur new debt either. Instead, put a small charge on the old card and pay it off in full each month to keep the account active.
Evaluate your spending habits
Consider how you accumulated a large balance and steps you need to modify your spending habits. Perhaps the balance was the result of an emergency that couldn't be avoided. Or maybe you are living beyond your means. Create a budget and seek the help of a credit counselor.
What to do if your balance transfer is rejected
Sometimes, you are approved for a balance transfer card but when it comes time to make the actual transfer, it is rejected. What to do?
Here's what you can do if this happens to you:
- If the balance transfer is denied – Simply ask the card issuer to reconsider. The reason why you were denied can be the deciding factor.
- If your credit is poor – If your credit score was too low or you don't have high enough income, you may be denied. Sometimes you can get approval if there are extenuating circumstances.
- If it's due to lack of available credit – Try resubmitting with a lower amount. If your first problem hasn't been solved (transferring the old balance), you might consider another card. Just make sure you have sufficient income and credit score for that card. Keep in mind that each hard inquiry impacts your score by about 5 points.
* All information about The Amex EveryDay® Credit Card from American Express has been collected independently by CreditCards.com and has not been reviewed by the issuer. The Amex EveryDay® Credit Card from American Express is no longer available through CreditCards.com.
** All information about Chase Slate® has been collected independently by CreditCards.com and has not been reviewed by the issuer. The Chase Slate® credit card is no longer available through CreditCards.com.
Laura is an editor and writer at CreditCards.com. She has written extensively on all things credit cards and works to bring you the most up-to-date analysis and advice. Laura's work has been cited in such publications as the New York Times and Associated Press. You can reach her by e-mail at firstname.lastname@example.org and on Twitter @creditcards_lm.
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