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Balance transfer credit cards are for those with good credit who want a lower interest rate or to consolidate debt. The best balance transfer credit cards even start with an intro 0% APR. Pay off what you owe before the intro period ends, and you can avoid interest fees entirely.
Great for: Unlimited cash back
Good/Excellent (670-850)
Intro APR 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 15 months from account opening
Balance Transfers: 0% intro APR, 15 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee N/A
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus and a generous intro APR offer. We simply haven’t come across this combination of top perks in one card before. Read Full Review
Great for: Balance transfers and cash back
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 0%, 18 months
Regular APR
18.24% - 28.24% Variable APR
Rewards 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
1% - 2% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you’ve earned at the end of your first year.
Features the typically impressive slate of Discover card perks, but without the big bonus cash back. Read Full Review
Great for: Long 0% intro APR
Good/Excellent (670-850)
Intro APR 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 21 months from account opening
Balance Transfers: 0% intro APR, 21 months from account opening on qualifying balance transfers
Regular APR
18.24%, 24.74%, or 29.99% Variable APR
Rewards
N/A
Annual Fee N/A
$0
This no-frills card is a solid choice if your priority is to avoid credit card interest for as long as possible. It offers an incredible 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. The balance transfer fee (5%, min: $5) is higher than some cards — but if you want an equally long intro APR on purchases, then this card is hard to beat. Read Full Review
Great for: Long 0% intro APR
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 21 months
Regular APR
19.24% - 29.99% (Variable)
Rewards
N/A
Annual Fee
$0
Welcome Offer There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Lower intro balance transfer fee
This is one of our favorite cards for balance transfers. It has 0% intro APR for 21 months on balance transfers and a discounted balance transfer fee for the first four months. That combo makes it one of the most generous balance transfer offers we’ve seen. Plus, you can choose from any available payment date. That way, you can set up automatic payments that are aligned with your paycheck. Read Full Review
Great for: Rewards versatility
On Chase's Secure Website.
On Chase's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR on Purchases
Purchases: 0% Intro APR on Purchases, 15 months
Balance Transfers: 0% Intro APR on Balance Transfers, 15 months
Regular APR
20.49%-29.24% Variable
Rewards 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Travel℠, 3% on dining and drugstores, and 1% on all other purchases.
5% cash back offer
Annual Fee N/A
$0
Welcome Offer Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!
$200 bonus
This Chase card is one of our favorites, and with good reason. You earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, alongside other standout perks (and at least 1% on all purchases). Plus, this one comes without an annual fee and with a generous welcome bonus. Read Full Review
Bank of America® Customized Cash Rewards credit card
Great for: Rewards
On Bank of America's Secure Website.
On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 19.24% - 29.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
19.24% - 29.24% (Variable)
Rewards 3% cash back in the category of your choice, 2% at at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, 1% on all other purchases.
1% - 3% cash back
Annual Fee
$0
Welcome Offer $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
$200 cash back
This card's wide range of extra cash back options speaks for itself, with a choice of six bonus categories you can change monthly for 3% earnings in the category of your choice. And you can earn 2% back automatically at grocery stores and wholesale clubs. No annual fee and a nice welcome bonus also make this one a winner. Plus, if you're a Bank of America Preferred Rewards member, this card will be even more valuable for you. Read Full Review
Great for: Balance transfers and cash back
Fair to Excellent (580-850)
Intro APR N/A
Purchases: N/A
Balance Transfers: 0%, 18 months
Regular APR
19.24% - 29.24% (Variable)
Rewards 2% cash back: 1% when you buy plus 1% as you pay
Up to 2% cash back
Annual Fee
$0
Welcome Offer Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
20,000 ThankYou® Points
This card combines a top-notch balance transfer offer for 18 months with best-in-class unlimited 2% cash back on purchases. There's no introductory APR for purchases, so you'll need to pay those off in full every month if you want to avoid interest charges. Read Full Review
U.S. Bank Visa® Platinum Card
Great for: Balance transfers and purchases
Good/Excellent (670-850)
Intro APR 0% on purchases and balance transfers for the first 21 billing cycles on purchases billing cycles, and after that 18.74% - 29.74% (Variable).
Purchases: 0%, 21 billing cycles on purchases
Balance Transfers: 0%, 21 billing cycles
Regular APR
18.74% - 29.74% (Variable)
Rewards
N/A
Annual Fee
N/A
Welcome Offer
N/A
Got a big purchase to finance over time? Consider this U.S. Bank card, as it'll give you a whopping 21 billing cycles of 0% APR on purchases. This also goes for balance transfers, making this one a great fit if you have some existing debt to pay off. It also comes without an annual fee.
I definitely know which one I would pick if I needed one today: the Discover it® Chrome. That's because it has three key features I look for in a balance transfer card:
The intro offer for balance transfers is nice and long at 18 months. It also has a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* that's on the low end. Plus, in my experience, Discover is usually fairly generous with credit lines.
It also doesn't hurt that Discover has a relatively low standard 18.24% - 28.24% Variable APR for qualified cardholders, with no penalty APR. Plus, there aren't many extra fees; the card has no annual fee, no foreign transaction fee, and no overlimit fees.
That said, there isn't a single balance transfer card that's the best for absolutely everyone. It will depend a lot on your credit history, income, and which cards you already have.
"Using this card was an all-around win because I was able to knock a few hundred dollars off the total of my home improvement project from the bonus and cash back. The 0% intro APR let us keep a big chunk of our savings."Rachel Zinanti, The Motley Fool Ascent
Apply for the Wells Fargo Reflect® Card
Apply for Bank of America® Customized Cash Rewards credit card
Apply for Citi Double Cash® Card
Wondering if transferring your balance is a good idea? Here's what our expert says and what to be cautious of.
Generally speaking, if the balance transferred can be paid off within the 0% APR intro period, the transfer is probably a good idea. If the balance cannot be paid within that period of time, it's important to know what the APR will be. It's probably better to avoid using the card for anything else than paying the transfer balance. So customers should steer clear of using the card for both transfer and new purchases.Francisca Beer, Ph.D. Professor of Finance, California State University, San Bernardino
The three main points you should look at when comparing balance transfer cards are:
One thing you don't need to consider are the rewards. You won't earn rewards on transferred balances, and balance transfers won't count toward any kind of welcome or sign-up bonus requirements.
Card | Rating | Great For |
---|---|---|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Unlimited cash back |
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Balance transfers and cash back |
|
2024 Award Winner
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long 0% intro APR |
2024 Award Winner
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long 0% intro APR |
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Rewards versatility |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Rewards |
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Balance transfers and cash back |
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Balance transfers and purchases |
Yes, balance transfers can be a great way to save money on your credit card balances, but only if you can qualify for a 0% intro APR credit card offer. Otherwise, you're likely just moving from a card with a high APR to another card with a high APR -- and you're stuck paying a 3% to 5% balance transfer fee, to boot.
When you have a good intro APR offer, however, you can essentially go from a double-digit interest rate to no interest rate. Research from The Motley Fool Ascent found that the average credit card APR is 22.77% -- that's a lot higher than 0%. Especially when you also consider that the average cardholder has $6,501 in debt.
What does all that mean in real numbers? Here's how much an intro 0% APR offer could save the average cardholder:
Card Name | Balance Transfer Offer | Regular APR | Balance Transfer Fee | Potential Savings* |
---|---|---|---|---|
Discover it® Chrome | 0%, 18 months | 18.24% - 28.24% Variable APR | $195.03, (3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*) | $1,039.15 |
Citi Double Cash® Card | 0%, 18 months | 19.24% - 29.24% (Variable) | $195.03, (3% ($5 min.) on transfers in the first four months, 5% ($5 min.) thereafter) | $1,039.15 |
Bank of America® Customized Cash Rewards credit card | 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days | 19.24% - 29.24% (Variable) | $195.03, (3% for 60 days from account opening, then 4%) | $835.05 |
Author's balance transfer savings calculations
BT fee: They all have a 3% fee, so $6501 x 0.03 = $195.03
Discover/Citi Savings: $6,501 at 22.77%, paid off over 18 months, would cost $1,234.18 in interest fees.
$1234.18 - $195.03 = $1,039.15 in savings.
(The monthly payment drops from $429.73 to $361.17.)
BofA Savings: $6,501 at 22.77%, paid off over 15 months, would cost $1,030.08 in interest fees.
$1,030.08 - $195.03 = $835.05 in savings.
(The monthly payment drops from $502.07 to $433.40.)
It's important to consider the benefits and drawbacks of doing a balance transfer with a balance transfer credit card. While the best balance transfer credit cards can save you hundreds in interest, they can also end up costing you.
You can use the balance transfer calculator below to get a clearer picture of how much it could save you on interest and monthly payments.
Save ${{ computedData.btSameMonthlyPayment.savings | withCommas }} using a balance transfer card. You'll keep your current monthly payment (${{ computedData.btSameMonthlyPayment.monthlyPayment | withCommas }}).
Take full advantage of a Balance Transfer Card and save ${{ computedData.btMaxSavings.savings | withCommas }} by increasingdecreasing your monthly payment by ${{ computedData.btMaxSavings.monthlyChange | withCommas }}.
You would actually pay more overall by using a Balance Transfer Card.
If you pay the same amount (${{ computedData.btSameMonthlyPayment.monthlyPayment | withCommas }}) each month, it will take you {{ computedData.btSameMonthlyPayment.payoffTime }} total months (* {{ computedData.btSameMonthlyPayment.payoffChange }} months less) (* {{ computedData.btSameMonthlyPayment.payoffChange }} months more) (* same as current plan) to pay off your credit card balance of ${{ computedBalanceOwed | withCommas }}. Your total interest amount will be ${{ computedData.btSameMonthlyPayment.interestPaid | withCommas }}, and you will still save ${{ computedData.btSameMonthlyPayment.savings | withCommas }}. This assumes you do not make any additional charges during this period.
If you increase the amount you pay to decrease the amount you pay to keep the amount you pay as ${{ computedData.btMaxSavings.monthlyPayment | withCommas }} each month, it will take you {{ computedBtIntroPeriod }} months to pay off your credit card balance of ${{ computedBalanceOwed | withCommas }}. Your total interest amount will be ${{ computedData.btMaxSavings.interestPaid | withCommas }}. This assumes you do not make any additional charges during this period.
TIP
Based on the information entered, a balance transfer credit card would cost you more money in the long run. You may want to consider a personal loan instead.
Fee Disclosure: Some balance transfer credit cards may charge additional fees. These can include both annual fees and balance transfer fees. Check your card's terms and conditions for fee amounts. Your credit card will also have a balance transfer limit that restricts how much you can transfer. This limit should be listed in your cardholder agreement and will often be available by logging into your online account.
Balance transfers can hurt and help your credit. When you use a balance transfer card, it affects three factors used to calculate your credit score:
Although your credit score may or may not drop after a balance transfer, it will likely go up as you pay down your credit card debt. After all, building a positive payment history is one of the best ways to rebuild credit. And balance transfer credit cards allow you to do that faster while also saving on interest.
You can never transfer a balance that's larger than your credit limit. Some of the best 0% APR balance transfer credit cards will only let you transfer up to a percentage of your credit limit -- usually 70% to 95% -- while others will let you reach your credit limit. Keep in mind that any balance transfer fees will add to your balance, as well. If you're transferring a $1,000 balance to a card with a 3% balance transfer fee, you'll need a credit limit big enough to cover a $1,030 balance.
A balance transfer credit card moves a balance from one account to another. Once you've completed a balance transfer, the original account is paid off, and you make payments on the account that received the transfer.
You're essentially using the balance transfer card to pay off your debt. The best balance transfer credit cards come with a 0% introductory APR -- similar to 0% intro APR credit cards -- on a qualifying balance transfer. This means that you won't pay credit card interest on the balance transferred for the intro period, which can be anywhere from a few months to 20 or more billing cycles. After the introductory APR ends, the card issuer will start charging the card's regular variable APR on any remaining balance. Paying off your balance quickly will help you avoid getting an interest charge when the intro APR period ends.
Sometimes a card issuer only allows a credit card transfer of balances, whereas others let you transfer all kinds of debt. Consumers typically use balance transfer cards for credit card debt.
The total amount of the transfer, plus any balance transfer fees, must be less than the balance transfer card's credit limit. If it isn't, you'll find your balance transfer denied.
You can't do a credit card transfer between two cards from the same card issuer, either. A balance transfer from a Chase credit card to a Citi credit card is fine, but a transfer between two Chase credit cards wouldn't be allowed.
A balance transfer fee is an extra fee charged by the receiving credit card -- the card you're transferring to -- to process the balance transfer. Typical balance transfer fees range from 3% to 5% of the total amount transferred (usually with a $5 minimum).
Here are some real numbers to get a better idea of what the fee looks like:
Transfer Amount | Balance Transfer Fee (%) | Balance Transfer Fee ($) | Balance Transfer Fee (%) | Balance Transfer Fee ($) |
---|---|---|---|---|
$500.00 | 3% | $15.00 | 5% | $25.00 |
$1,000.00 | 3% | $30.00 | 5% | $50.00 |
$2,000.00 | 3% | $60.00 | 5% | $100.00 |
$3,000.00 | 3% | $90.00 | 5% | $150.00 |
$4,000.00 | 3% | $120.00 | 5% | $200.00 |
$5,000.00 | 3% | $150.00 | 5% | $250.00 |
In addition to an introductory 0% APR, many of our favorite balance transfer cards also come with a promotional balance transfer fee. A fee drop from 5% to 3% can save you $20 per $1,000 transferred, so these promotional rates can be a big money saver.
The transfer fee is generally added to your overall credit card balance. For example, if you transfer $1,000 to a credit card with a 3% balance transfer fee, you'll be charged an extra $30. So, your overall balance on the new card will be a total of $1,030.
Your total transfer balance -- the amount you want to transfer plus the transfer fee -- cannot exceed your credit limit. Keep this in mind when calculating how much you can transfer to your new card.
The credit card that originally had the balance will remain open after the balance transfer. Although you can continue using it, you should strongly consider waiting until you've paid off all your credit card debt. That way, you don't run the risk of running up another costly balance and ending up in the same position as before.
About our expertise with balance transfer credit cards: Brittney has spent more than seven years researching the best credit cards for her readers and for herself.
Brittney:
My personal card collection comprises many types of cards, which gives me both professional and personal experience to draw from in my research. I know what to look for in a balance transfer card, including the fees and gotchas that might be hidden in the fine print or behind financial jargon. I also have a ton of experience crunching the numbers, so I can help readers understand the real-life impacts of a balance transfer on their finances.
At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers.
Our highest-rated credit cards have:
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Our aim is to maintain a balanced best-of list featuring top-scoring credit cards from reputable brands.
Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how The Ascent rates credit cards.
You usually need a FICO® Score of 670 or higher to qualify for a balance transfer credit card. Most balance transfer cards, especially the ones with a 0% intro APR, are intended for consumers who have good or excellent credit.
A standard balance transfer fee is 3% or 5% of the transaction amount with a $5 minimum. To find out how much a specific credit card charges, check the fees section in its pricing and terms.
A balance transfer card alone most likely won't affect your ability to get a mortgage, but having credit card debt could.
Lenders check your debt-to-income (DTI) ratio when you apply for a mortgage. If you have a high DTI ratio due to credit card debt, that could negatively impact your mortgage application. Large amounts of credit card debt can also affect your credit score, which is another item that mortgage lenders consider.
A balance transfer credit card can accept balance transfers from other cards. When you set up a balance transfer, your balance transfer card is paying off your other credit card(s). The amount you transfer will be taken off the original credit card and put onto the balance transfer card.
A balance transfer can take anywhere from two days to six weeks. It depends on multiple factors, including the card issuers of both cards. Here are the typical balance transfer times for the most popular card issuers:
Francisca Beer, Ph.D.
Professor of Finance, California State University, San Bernardino
Dr. Francisca Beer, Professor of Finance at California State University, San Bernardino, is renowned for her expertise in corporate finance, capital markets, and international finance. With over 50 publications in esteemed journals and recipient of numerous awards, she is a respected thought leader. Her commitment to financial literacy extends to WalletHub contributions, community workshops, and speaking engagements across the globe.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The Motley Fool owns shares of and recommends Visa and Mastercard.