Balance transfer credit cards allow transferring the credit balance of a credit card. This can be a useful option if you are carrying a high balance on a credit card with a high-interest rate. To reduce the amount of interest you are paying it makes sense to use a balance transfer card with a low APR. By transferring the balance to a credit card with a lower interest rate, card members can save money. This can also help to pay off their debt faster.

In order to, avail of a balance transfer, a member will need to apply for a balance transfer credit card. They need to provide the account information for the previous credit card. Next, the credit card issuer will then transfer the balance from the old credit card to the new one. There may be a fee for the balance transfer. Credit cards charge 3-5% of the amount of the balance transfer as a fee.

Applicable APR on Balance Transfer Credit Cards

It’s important to consider the terms and conditions of a balance transfer credit card before applying. Some cards may have restrictions on the amount customers can transfer. They may charge a high fee for the balance transfer based on the FICO score.

Balance transfer cards offer 0% APR for an introductory period. They may charge 0% interest on the balance transfer for 12-18 months. Card members should aim to make advantage of this introductory promotional period. It’s important to make sure card members can pay off the balance within the intro period. Any remaining balance will be subject to the interest rate once the intro period ends.

It’s important to note that balance transfer credit cards often come with fees. A balance transfer fee, which is a percentage of the transferred balance. The promotional interest rate on balance transfers is available for a limited time. After the introductory period, the interest rate will revert to the regular. Thus, it’s important to consider the terms before deciding to transfer a balance.

A balance transfer makes financial sense only if the money you save on interest is more than any fee you’ll pay to carry out the transfer.

Advantages of a Balance Transfer Credit Cards

Here are some of the advantages a balance transfer credit card offers to customers.

• Lower interest rates: The main benefit of a balance transfer card is saving on interest. Suppose you have a high-interest credit card and transfer the balance to a credit card with a 0% APR or low APR. In that case, you can save a significant amount of money on interest charges.
• Pay off debt faster: By transferring your balance to a credit card with a lower interest rate. More of your monthly payment goes towards paying off the principal balance. This helps a customer pay off their debt faster.
• Merge credit card balances: Further, customers can merge balances into one account. This can make it easier to manage debt. Further, it can help keep track of payments. If a person has outstanding debts across many cards, it’s difficult to keep track of dates. Instead of keeping track of their payments and dates., it makes sense to transfer them to a single card account.
• Improve credit score: Finally, customers can improve their credit score. Balance transfer credit cards can help improve the credit utilization ratio. The Credit Utilization Ratio refers to the amount of credit in use compared to the credit limit. By consolidating spending, it can help free credit limits on cards. Ultimately, it can help improve their credit score. This would help in improving their credit score over time. Also, read more how to build your credit score.
• Other factors: A customer needs a high credit score for applying for a balance transfer card. To apply for a Balance Transfer card ensure that you are not applying for the card from the same bank. Banks do not allow the transfer of balance credit from their own credit cards.

0% APR credit cards

These credit cards run introductory offers of 0% annual percentage rate (APR). These APR run for all new purchases or balance transfers for a limited time. They don’t charge any interest on balance transfers during the intro period. They charge normal interest or APR, once the intro period is over. Cardmembers should be aware what is the applicable APR.

0% APR credit cards can be a useful option if card members need to make a large purchase. They are also great if you have high-interest debt and want to save on finance charges.

It’s important to note that 0% APR credit cards often come with fees, such as a balance transfer fee or a cash advance fee. The promotional 0% APR period is only available for a limited time. Thus, after the intro period, the interest rate will revert to the regular rate. So, it’s important to carefully consider the terms and conditions of a 0% APR credit card before making a decision to use one.

Nonetheless, these credit cards are a great way to reduce payment outlay. If you have a $1,000 credit card debt on the 18% card, you’d pay about $150 in interest over the course of those 18 months.

If you transferred the debt to a card with a 0% intro APR for 18 months, you’d pay no interest at all. Further, if you used the money you would have paid in interest and applied it to pay down the balance. You’d be debt free in a couple of months.

List of Best Balance Transfer Credit Cards or 0% APR credit cards

Here is a list of some of the best Balance Transfer Credit Cards which our users can consider. These credit cards are from top banks and credit card companies.

#1 Discover It Cash Back Credit Card

Introduction Balance Transfer APR: Discover It Cash back credit card offers 0% introductory APR. But, this introductory APR is for only the first 15 months of the credit card opening.

Regular APR after the Introductory period: 15.74% to 26.74% Standard Variable Purchase APR for all the balances.

Rewards: Discover It offers 5% cashback on purchases like amazon.com, grocery stores, restaurants, and gas stations. But this offer is limited to $1,500 in purchases.

Annual Fee: $0

Balance Transfer Fee: 3% introductory balance transfer fee. This increase to 5% of the balance transfer fee after the intro period.

Our Rating: 3 /5

Pros and Cons of this card: Discover It Cash Back Credit card offers a great 0% introductory APR. This card though applies a fee of 3-5% of the balance transfer. Discover It offers the customer a choice of any of the 25 available beautiful card designs.

#2 Wells Fargo Reflect Card

Introduction Balance Transfer APR: 0% introductory APR for 21 months on balance transfers and purchases. There is 18 months of normal intro period and 3 months of extension of 0% APR. This is again a very good credit card with an effective 21 months 0% APR.

Regular APR after Introductory period: 17.24% to 29.24% variable APR thereafter

Rewards: Deals through My Wells Fargo Deals

Annual Fee: $0

Our Rating: 5 / 5

Pros and Cons of this card: Wells Fargo Reflect Card is one of the best 0% APR credit cards. Since it offers a long term of 18 months. Cardmembers can further extend this to 3 more months. In order to qualify they have to make a minimum balance payment on time.

Card members get 120 days period to balance the transfer and qualify for the intro rates. Finally, Nerd Wallet and Motley Fool have also identified this card as the best 0% APR credit card.

#3 Virginia Credit Union (VACU) Cash Rewards Mastercard Credit Card

Introduction Balance Transfer APR: 1.99% for 18 months for all new VACU Mastercard

Regular APR after Introductory period: 14.74% – 25.74% APR

Rewards: This credit card offers a 3% cash back on gas, 2% back on groceries and restaurants, and 1% on other purchases

Annual Fee: $0 in annual renewal fees

Other Fees: $0 in Foreign transaction fees, cash advances, or balance transfer fees

Our Rating: 4 / 5

Pros and Cons of this card: VACU Mastercard is an excellent choice for a balance transfer card. As it offers an introductory rate of 1.99% for 18 months for all new credit card accounts. Though, this credit card doesn’t apply any joining, cash advance, balance transfer, or annual fees. In conclusion, this is one of the cheapest cards with great cashback rewards as well.

#4 SavorOne Rewards from Capital One

Introduction Balance Transfer APR: 0% intro APR for the balance transfer. Though, these apply for new purchases in the first 15 months of card approval.

Regular APR after Introductory period: Post the Intro APR increases to 17.99% – 27.99% variable APR on the outstanding balance.

Rewards: This credit card offers 3% cash back on entertainment, dining, streaming services, and grocery stores purchases

Annual Fee: $0 annual or foreign transaction fee

Other Fees: 3% fee on the amount transferred in the first 15 months of card issuance

Our Rating: 3 / 5

Pros and Cons of this card: Savor One credit card from Capital One is a good 0% Intro APR card. This card offers an introductory offer of 0% APR on the first 15 months of the new credit card. Though it does apply a 3% transfer fee on the balance transfer.

It offers a $200 cash bonus to the customers if they spend $500 in the first 3 months. Further, this card offers 5% unlimited cash back on hotels and taxis booked through Capital One Travel. It offers a great 8% cash back on Capital One Entertainment purchases.

Finally, customers have the option to redeem their cash back on Amazon.com. They can also redeem cash back on online stores when checking out through PayPal payment.

#5 Chase Freedom Unlimited Credit Card

Introduction Balance Transfer APR: 0% introductory APR for the first 15 months. Though, this introductory APR is valid for balance transfers and purchases

Regular APR after Introductory period:  Variable APR of 18.74% – 27.49%

Rewards: 5% cashback on grocery purchases and 1% on other purchases. The total cashback reward is up to a maximum of $600 per year. members can further, get 5% cash back on pre-paid travel through Chase Ultimate Rewards.

Annual Fee: $0

Balance Transfer Fees: $5 or 3% of the balance transfer amount whichever is greater. This introductory rate is valid on transfers in the first 60 days. Post, that the regular rate is applicable of $5 or 5% of the amount whichever is greater.

Our Rating: 3 / 5

Pros and Cons of this card: Chase Freedom Unlimited Credit Card offers 0% APR for 15 months. Although, this card has a higher APR once the introductory APR ends. In conclusion, this card offers good rewards though it applies $5 or 3% of balance transfer fees

#6 American Express Cash Magnet Card

Introduction Balance Transfer APR: 0% of Intro APR for the first 15 months of the credit card opening on balance transfer fees or purchases.

Regular APR after Introductory period: Variable APR of 18.24% to 29.24% after the  intro period

Rewards: $200 of a statement credit on spend of $2,000 on the spend on new credit card within the first six months. This credit card offers 1.5% of unlimited cashback on all purchases.

Annual Fee: $0

Other Fees: Either $5 or 3% of the balance transfer amount whichever is greater. Either $10 or 5% of the cash advance amount whichever is greater. A 2.75% foreign transaction fee.

Our Rating: 3 / 5

Pros and Cons of this card: Firstly, Cash Magnet is a rare American Express credit card with $0 Annual fees. It also offers 1.5% cash back on all purchases through this credit card. This card offers 15 months of a 0% APR introductory period and $0 of Buy Now and Pay Later Intro Plans.

Further, American Express allows cardmembers access to their Experience Collection. This collection offers exclusive access to tickets and member-only events.

#7 Citi Double Cash Credit Card

Introduction Balance Transfer APR: 0% Intro APR for 15 months for balance transfers

Regular APR after Introductory period: Variable APR of 18.24% – 28.24% based on the credit of the customer

Rewards: 2% of cash back on purchases (1% on the purchases and 1% on the payment of dues)

Annual Fee: $0

Other Fees: Intro fees of 3% of balance transfer fees (least of $5) for the first 4 months of credit card account opening. After the Intro period and 5% of balance transfer fees after that (subject to $5). 3% of foreign transaction fees are applicable on foreign transactions.

Our Rating: 2 / 5

Pros and Cons of this card: Citi Double credit card offers cashback in 2 tranches. This credit card offers 1% cash back on purchase of the goods or services. Another 1% of cashback is offered on the payment of the minimum dues on time. The cashback is in the form of points. These points can be redeemed for statement credit, direct deposit, or check. Customers also have the option to redeem points on travel bookings, Amazon, or other shopping websites. This card does not provide any balance transfer APR on any new purchases.

#8 Citi Simplicity Credit Card

Introduction Balance Transfer APR: 0% Intro APR for 21 months for balance transfers. Additionally, 0% intro APR for all new purchases for the first 12 months.

Regular APR after Introductory period: Once the introductory period is over, a variable APR of 18.49% – 29.24% is charged. This APR will be on the creditworthiness of the customer.

Rewards: Citi Simplicity credit cards do not offer any rewards. This credit card is not meant to be a rewards credit card.

Fee: Citi simplicity credit card doesn’t charge any annual fees, late fees, or penalty fees.

Other Fees: Intro fees of 3% of balance transfer fees (least of $5) for the first 4 months of credit card account opening. After the Intro period, 5% of balance transfer fees (subject to $5). 3% of foreign transaction fees are applicable on foreign transactions.

Our Rating: 5 / 5

Pros and Cons of this card: Citi Simplicity credit card is one of the best 0% APR credit cards. As this credit card offers a 0% introductory offer for all new purchases for 12 months. Customers can also use it for making big purchases. They can then pay the amount over a year.

Though this credit card does not offer any rewards, it offers the best balance transfer period of 21 months. Additionally, it offers 12 months of 0% introductory offer on new purchases.