A balance transfer card lets you move a balance from one credit card to another.Sometimes, you can transfer more than just credit card debt to a balance transfer card, such as a personal loan.
Balance transfer cards typically come with an introductory 0 percent APR offer for a set period (typically 12 to 21 months), during which you won’t be charged interest on your transferred balance. This interest-free period allows you to pay off debt more efficiently, since your payments will go toward your principal balance instead of interest charges.
When the intro APR period ends, interest applies to any remaining balance at the end of each billing cycle like a regular credit card. The average intro APR period is 12 to 21 months, with many of the best balance transfer intro periods offering 18 to 21 months. However, cards with longer intro periods often lack rewards, hindering their long-term value.
The amount of time it takes for a balance to transfer from one credit card to another will vary by issuer. The process typically takes five to seven days, but some credit card companies may take up to six weeks to complete balance transfers. Others may take as little as two days. You will typically receive an estimated turnaround time from your card provider in advance. Also, if your new card issuer approves your balance transfer request, it must coordinate the transfer with your current card issuer, which could cause potential delays.
Balance transfer terms to know
Balance transfer fee: In exchange for letting you transfer a balance, the new card typically charges a balance transfer fee. This fee is usually 3 percent to 5 percent of the balance you’re transferring, with a minimum of $5.
Intro APR offer: This is the time period, usually lasting 12 to 18 months, during which you won’t pay interest on your balance.
Transfer window: Some balance transfer cards require you to transfer a balance within a designated timeframe to qualify for the intro offer. Common transfer windows are 60 to 120 days.
Ongoing APR:This interest rate applies to any balance remaining after the intro period ends. The current average interest rate is about 20 percent.
A balance transfer card is an effective tool to help you pay off debt, but you’ll want to consider key details before putting in an application. To help guide you on choosing a balance transfer credit card that fits your unique financial situation, consider the following questions:
Keep in mind that you won’t be able to transfer your balance from one card to another card from the same issuer. For example, you can’t transfer a balance from one Citi credit card to another Citi card. When you compare your card options, look for cards from issuers you don’t have an account with.
Consider this timeframe when choosing your card and make sure you transfer your balance on time. Otherwise, you may have to wait for a promotional offer from the issuer or look at another card.
The difference between a 3 percent balance transfer fee and a 5 percent balance transfer fee could be significant, depending on the amount you transfer. If you want to save money, take a closer look at cards with 3 percent balance transfer fees. If the amount you transfer is relatively small, a 5 percent balance transfer fee may still be a reasonable option.
Not all balance transfer cards provide an intro APR offer for new purchases. Keep this in mind if you plan to use the card for both new purchases and a balance transfer. Depending on the cardholder agreement, some issuers may charge interest on new purchases if you’re carrying any balance, including from a balance transfer.
You’ll want to choose a card with an intro APR offer period that matches how much time you reasonably need to pay off your balance. The best balance transfer cards offer a 0 percent intro APR on transfers for 18 to 21 months, but a shorter time frame can still be a good choice, depending on the balance.
Know what the card’s APR is after the introductory period ends. Interest rates vary widely and knowing exactly what you're signing up for is helpful if you need to occasionally carry a balance beyond the intro period.
Most balance transfer cards trade top-notch card features for a lengthy intro APR period, so you’ll usually miss out on rewards and additional cardholder benefits. However, some cards may still offer basic benefits like purchase protection and identity theft protection services.
Learn more: Should you choose a longer balance transfer offer or a shorter offer with rewards?
How to choose a balance transfer credit card
Here’s how a Bankrate expert chose her balance transfer card
When Bankrate writer Seychelle Thomas chose a balance transfer card to help her pay off debt, she prioritized one card detail over others: the 0 percent intro APR length on her transfer.
When I was trying to pay off credit card debt as a freelancer two years ago, I compared balance transfer options and chose to go with the Citi Simplicity® Card. My main priority was finding the longest intro APR period. The Citi Simplicity beat most other options and made it easy for me to pay down my balance on schedule without destroying my fluctuating budget at the time.
Keeping fees to a minimum was next on my list, because every little bit counts when you're paying off debt. When I compared it to the Citi® Diamond Preferred® Card (a card with a similar offer) I noticed that the Citi Simplicity had no late fees, a lower balance transfer fee as an intro offer and no penalty APR rate. That was a no-brainer for me.
The only other advantages of the Diamond Preferred were the FICO score access and Citi Entertainment, but I didn't find them valuable because I had other cards that offered similar features.
— Seychelle Thomas, Writer, Credit Cards
Estimate your balance transfer savings
If you’re trying to find out how much you’ll have to pay on your balance transfer card, check out this tool to help you calculate your total savings:
Bankrate keeps a pulse on how people react to the latest trends in the credit card world and breaks down how everyone can best prepare their finances for these market changes.
The current bulk of online and social media conversation revolves around optimizing credit card reward and sign-up bonus strategies, but inflation rates, snowballing card balances and sky-high APRs certainly seems to affect the discussion around balance transfer cards.
Consumers now seem more torn about using a 0 percent intro APR card to handle debt. For example, a Reddit user had $9,000 in credit card debt that they could pay off with emergency savings. However, they asked the community whether a balance transfer card would be a better idea since they were worried about potential emergencies. Both solutions quickly gained traction in the thread: one user suggested a balance transfer card, but another recommended using an emergency fund.
“If you can avoid using the 0 percent APR as an opportunity to take on more debt, it’s probably a good idea,” one user commented in favor of balance transfer cards. “[T]aking the balance transfer offer would probably save you money unless you pay off your current card in less than three months.”
However, another user pointed out that savings accounts don’t accumulate interest as fast as credit cards, so paying off the debt with an emergency fund may be the better option.
Both options are valid and have their advantages and drawbacks if you’re in a similar dilemma. A balance transfer card could protect your savings, but a financial emergency could derail your payment plan. Paying off the balance with your savings immediately gets you out of debt, but any unexpected expenses could risk you getting into credit card debt again.
In another example, a myFICO Forum user recently asked for advice for handling lingering debt after a balance transfer. Many other users advised them to stick to a strict budget and stop using credit cards altogether.
Finding a credit card debt payoff plan that works for you is the best approach if you catch your card balance snowballing before it’s unmanageable. An issuer’s credit card hardship program may help pay off debt if you qualify, but some of these repayment plans may still allow interest to accrue. As some of myFICO Forum users mentioned, getting an installment loan from a bank to pay off your credit card debt could save you money on interest, but these can be risky options if you don’t adjust your spending habits.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Using balance transfer cards vs. alternatives
In the face of a tougher economic landscape, driven in part by inflation and Federal Reserve rate increases in 2023, issuers may be tightening credit card approval requirements.
According to Bankrate’s proprietary data, approval rates for balance transfer cards decreased overall for applicants in the back half of 2023 — regardless of credit score. Among Bankrate users who applied for a balance transfer card, approval rates fell 17 percent from August to December 2023.
Although your approval odds for a card depend on your credit profile, these trends suggest that getting your hands on a balance transfer card may be harder now than it once was.
Here’s how balance transfer credit card approval rates for Bankrate users declined in the last few months of 2023.
If you’re unsure of your approval odds for a card you’re interested in, consider checking whether you can get preapproved for cards with different issuers or use tools like Bankrate’s CardMatch to get a better idea of your chances. Exploring preapproval odds before putting in an application could save your credit score a hit.
If getting out of high-interest debt is a priority and you can’t get a balance transfer card, debt consolidation may be your best option. The average interest rates on these loans are much lower than credit card interest rates, so you could still benefit from some savings while paying off high-interest debt.
How much money could you save with a 0% balance transfer?
A 0 percent intro APR offer could save you several hundred dollars if you're paying down a large balance.
Bankrate’s most recent data shows that the average credit card balance reached $6,501 in the third quarter of 2023. We’ve set up a scenario based on this average, where you would transfer a credit card balance of $6,501 based on the following conditions:
Balance transfer fee: You would pay the 3 percent to 5 percent balance transfer fee upfront.
Intro offer: You would pay off the $6,501 balance within the intro offer period for each card.
Interest and savings: We calculate potential savings with each card by comparing how much interest you would pay on your current card at 20 percent APR (approximately the current average interest rate), minus the balance transfer fee.
APR | With 5% balance transfer fee | Monthly payment | Total interest | Total amount paid |
20% for 18 months | $6,501 | $421 | $1077 | $7,578 |
0% intro on balance transfers for 18 months | $6,501 | $325 | $0 | $6826 |
A balance transfer can already help you save hundreds in interest, but there are a few ways to maximize the interest-free period.
Initiate your balance transfer immediately: Most cards require you to transfer your debt within a set period of time to qualify for a 0 percent intro APR offer. And the sooner you transfer the balance, the sooner interest stops accruing on that debt.
Keep up with your old card until your transfer is complete: Payment history is the most significant factor affecting your credit score. Until you have confirmation from your previous issuer that your card balance is zero, keep up with payments on your card.
Create a payoff strategy: Paying off as much of your transferred balance as you can within the intro APR period is key to a successful balance transfer. Creating a payoff plan gives you a clear timeline to work with and sticking to it could save you a ton in interest charges.
Don’t miss a payment: Missing a payment on your balance transfer card could void your intro offer, so nailing down a payment plan and sticking to it is crucial to maximizing the offer.
In the two years post-pandemic, Americans seem to be doing their best to compensate for lost travel and live events. A recent Bankrate survey found that around 38 percent of American adults say they’re willing to go into debt for fun activities, including travel, dining and entertainment. 27 percent are willing to take on debt to travel, 14 percent will carry debt for dining out and 13 percent will go into debt for entertainment. While there are variations depending on household income, age and parenthood, it generally ranges between 37 and 43 percent of people.
While many may be willing to take on debt temporarily, the longer you carry a balance on a card with a high interest rate, the more debt you’ll face. As rates remain high, completing a balance transfer could be one of the most helpful ways to manage your debt and save as much as possible on interest charges.
Some of the best balance transfer cards require good to excellent credit (FICO score of 670 – 850) to qualify. Even more, last year, credit lenders reported tightening their approval standards, meaning it may be more difficult to qualify for a certain card now. If your credit isn't up to par yet, you may be able to find secured credit cards that allow balance transfers, but they probably won't have 0 percent intro APR offers.
Who can qualify for a balance transfer?
Currently, the Wells Fargo Reflect, Citi Diamond Preferred and Citi Simplicity cards offer some of the longest intro APR periods. Although any temporary break from credit card APR is beneficial, a longer intro offer will give you the best opportunity to pay off your transferred balance.
What credit card has the longest balance transfer offer?
A few factors could cause you to experience a temporary dip in your credit score after you complete a balance transfer. Applying for a new credit card usually involves a hard inquiry, and opening a new card shortens your average account age. Also, if you apply for many new accounts in a short time or close an account as soon as you transfer a balance, these actions could negatively affect your score. However, your credit score won't be as affected if you pay down the balance on time every month and keep your debt-to-credit ratio low overall.
Read more: How does a balance transfer affect your credit score?
Do balance transfers hurt your credit score?
To complete a balance transfer, you’d need to complete the following:
Apply for a balance transfer credit card and get approved
Initiate a transfer to your new balance transfer card through your online account with your new issuer
Wait for verification that the transfer is complete
Set your payment plan in motion
Read more: Should I cancel my balance transfer?
How do you do a balance transfer?Yes, but transferring balances multiple times can quickly deplete your available credit and increase your overall debt-to-credit ratio since you're only moving the debt and not paying it off. That makes it harder for you to get approved for future credit and can cause your interest rates to rise as well. If you are in a position where you need to transfer your credit card balance more than once, then you should consider alternative options before doing so.Can you transfer a balance multiple times?
Your transfer limit is usually equal to or less than your credit limit. For example, if an issuer approves you for a credit limit of $5,000, you can transfer up to the same amount with most issuers. However, your credit limit and the balance transfer policies of your specific issuer will determine the amount you can transfer.
Read more: What is the limit for a balance transfer card?
Is there a limit to how much you can transfer?
How we assess the best balance transfer credit cards
When evaluating the best balance transfer and low-interest cards, we consider a mix of factors, including how cards score in ourproprietary card rating systemand whether cards offer features that fit the priorities of a diverse group of cardholders.
This includes users who need to carry a balance long term, need as much time as possible to chip away at debt or are looking for maximum long-term value via rewards.
Here’s a quick look at how our rating methodology breaks down for balance transfer cards:
We analyzed over 100 of the most popular balance transfer and low-interest cards and scored each based on its introductory APR, intro APR period length, ongoing APR, balance transfer fee, perks and more to determine whether it belonged in this month’s roundup
Here are some of the key factors that we considered:
The primary factor in a balance transfer or low-interest card’s rating and its inclusion in our list is the quality of its introductory APR offer and ongoing APR. This includes both the introductory rate itself and the length of the intro APR on both balance transfers and new purchases.
For cards designed primarily for balance transfers, the intro APR offer on balance transfers has the largest impact on overall score. The quality of these cards’ intro APR on new purchases is also considered, but holds less weight than the intro APR on balance transfers.
For general low-interest cards, the intro APR offer on new purchases has the largest impact on overall score, followed by the ongoing APR and intro APR offer on balance transfers. This weighting assumes cardholders considering a card in this category will prioritize payment flexibility on new purchases or may need to carry a balance long term, whereas cardholders trying to pay off debt will opt for a dedicated balance transfer card.
The cards that score the highest in these categories and are most likely to be included in our list tend to offer long 0% intro APRs on both balance transfer and new purchases as well as a lower-than-average low-end APR.
Generous intro and ongoing APR
Along with evaluating each card’s intro APR offers, we score balance transfer and low-interest cards based on their fees.
Of primary importance is a card’s balance transfer fee, since this can play a large role in the total cost of a balance transfer. We rate each card’s balance transfer fee based on how it stacks up against the fee you’ll find on competing cards.
While this fee carries less weight when we assess general low-interest cards than dedicated balance transfer cards, it still factors into our evaluation since cardholders may decide to transfer debt to a low-interest card even if it offers no intro APR or an intro APR higher than 0 percent.
And while a lower balance transfer fee could save you more overall than a few extra months of 0 percent intro APR, this fee carries less weight in our scoring system than a card’s introductory APR and intro APR period. This is because many users prioritize getting as much time as possible to pay off debt while avoiding interest.
Other fees considered in our assessment include the presence of annual, foreign transaction, cash advance and late payment fees, along with penalty APRs. Annual fees are weighted most heavily since these are the only “unavoidable” fees in the list and tend to be less common on dedicated balance transfer and low-interest credit cards.
Reasonable fees
While getting a generous intro APR offer and low ongoing APR are likely to be the biggest priorities for someone looking for a low-interest or balance transfer card, we also consider how much value a card can offerafterits intro APR comes to an end.
Balance transfer and low-interest cards receive a higher rating and are more likely to be included in our list of best cards if they also include an ongoing rewards program or unique and valuable perks. Such features make a card more useful long term and make it less likely you’ll need to apply for a new card (and temporarily hurt your credit score) after you pay off debt.
With this in mind, our best cards list often includes a number of rewards and cash back cards alongside dedicated balance transfer cards. These cards tend to offer slightly shorter intro APR periods, but could help you save more overall, either via rewards earned on everyday spending, valuable perks or a lower balance transfer fee.
Solid long-term value
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
15 Best Balance Transfer Credit Cards with 0% APR for August 2024:
Best overall:Citi Simplicity® Card
Best for long balance transfer period: Wells Fargo Reflect® Card
Best for excellent credit: Citi® Diamond Preferred® Card
Best for everyday spending:Blue Cash Everyday® Card from American Express Card
Best for welcome offer: Discover It® Chrome
Best for long-term value: Citi Double Cash® Card
Best for flat-rate cash back: Wells Fargo Active Cash® Card
Best for travel: Bank of America® Travel Rewards credit card
Best for dining: Chase Freedom Unlimited®
Best for groceries:Blue Cash Preferred® Card from American Express
Best for flexibility: Citi Custom Cash® Card
Best for customizable rewards:Bank of America® Customized Cash Rewards credit card
Best for late payment fee forgiveness: TD FlexPay Credit Card
Best for low interest: USAA Rate Advantage Credit Card
Best for simplicity: Bank of America® Unlimited Cash Rewards credit card
Additional Options:
Best for no penalty APR: BankAmericard® credit card
Best credit union balance transfer card: Gold Visa® Card
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make moneyandhow we rate our cards.
