Discover APRs are accurate as of December 12, 2024. Credit cards have notoriously high interest rates, so carrying a balance can be costly. However, some cards offer a path to paying off debt quicker with an introductory 0% APR period. These cards offer no interest for up to 21 months, which can more than offset any balance transfer fees.
Below, we review the best balance transfer cards and share what you need to know about using a balance transfer card.
Best with intro 0% APR for 21 months: Citi Simplicity Card
- Spotlight: Receive a 0% intro APR for 21 months on balance transfers and for 12 months on purchases.
- Good to Excellent credit score (670-850)
- No annual fee, no rewards, no welcome bonus
- Highlights:
- One of the longest intro-APR offers for balance transfers
- No annual fee
- No rewards, no welcome bonus
- Intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5)
- Who’s this for: The Citi Simplicity Card has a generous 0% APR period for balance transfers and a lower balance transfer fee than other options.
Best with intro 0% APR for 18 months: Discover it Chrome
- Spotlight: Earn Cashback Match rewards the first year for new cardmembers, including bonus category spending.
- Good to Excellent credit score (670-850)
- 18.49% – 27.49% Variable Rates as of December 12, 2024
- Highlights:
- Unique welcome bonus matches the cash back new cardholders earn for the first year
- Generous intro-APR offers apply to purchases and balance transfers
- No annual fee
- Intro balance transfer fee of 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)
- Who’s this for: The Discover it Chrome is an ideal Discover credit card for transferring credit card balances.
Other Balance Transfer Credit Cards:
- Wells Fargo Reflect Card: Has one of the longest introductory 0% APR periods for purchases and balance transfers, but has a higher balance transfer fee and no rewards or welcome bonus.
- Citi Diamond Preferred Card: Has one of the longest intro-APR offers for balance transfers, but has a higher balance transfer fee and no rewards or welcome bonus.
Pros and Cons of Balance Transfer Credit Cards:
- Pros: You can pay off your credit card balance more quickly because you won’t pay interest during the intro-APR period. You may also be able to improve your credit score by reducing your debt and lowering your credit utilization ratio.
- Cons: The majority of balance transfer credit cards have a balance transfer fee of 3% to 5%, which eats into your savings. You typically need a higher credit score to qualify for a balance transfer card.
Alternatives to Balance Transfer Credit Cards:
- Debt consolidation loan: A debt consolidation loan is an unsecured personal loan you take out to pay off your existing debts and roll separate payments into a single loan.
- Borrowing against your home equity: If you own a home worth more than you owe, you may be able to borrow against your home at a lower interest rate compared to credit cards and unsecured personal loans.
Conclusion:
Balance transfer credit cards can be a valuable tool for paying off debt quickly and reducing interest fees. However, it’s essential to carefully consider the pros and cons of each card and alternative options before making a decision. Be sure to calculate how much it will cost to transfer the balance versus how much in interest fees you’ll accrue by simply paying down the balance on your current credit card.
