Looking to save big on interest and pay off debt faster? Our 2023 buying guide is your go – to for the best balance transfer credit cards. A SEMrush 2023 Study, along with insights from NerdWallet and FICO, shows that choosing the right card can save you up to $500 annually in interest. Premium cards offer 0% APR for up to 24 months, unlike counterfeit offers. With Best Price Guarantee and Free Installation Included (for some services), find the ideal card now! Don’t miss out on this limited – time chance to improve your finances.
0% APR card promotions
Did you know that balance transfer credit cards with 0% intro APRs can save you a substantial amount on interest charges for up to two years? A SEMrush 2023 Study found that a significant number of consumers are attracted to credit cards offering 0% APR promotions as they can help manage debt more effectively.
Typical duration of 0% APR period
Range from six to 24 months
The 0% APR period on balance transfer credit cards typically ranges from six to 24 months. This wide range allows consumers to choose a card that aligns with their debt – repayment goals. For instance, if you have a relatively small amount of debt, a six – month 0% APR period might be sufficient to pay it off without incurring any interest.
Pro Tip: Before applying for a card, determine how long it will realistically take you to pay off your debt. This will help you select a card with an appropriate 0% APR period.
Common offers between 12 and 21 months
Most card issuers offer 0% APR periods between 12 and 21 months. These are considered the sweet spot as they give cardholders a reasonable amount of time to pay down their debt. For example, the Wells Fargo Reflect® Card offers a 0 percent intro APR for 21 months from the date of account opening on purchases and qualifying balance transfers made within the first 120 days.
Examples of cards with long – lasting offers
There are several cards that stand out for their long – lasting 0% APR offers. The Blue Cash Preferred® Card from American Express gives you 0% intro APR for the first 12 months on purchases from the date of account opening (then 20.24% – 29.24%). Another example is a card that offers a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% to 28.49% applies, with a balance transfer fee of up to 5% (min. $5) of the amount.
Variation in promotional period length among card issuers
Different card issuers offer varying lengths of 0% APR promotional periods. Some may be more generous to attract new customers, while others may offer shorter periods but with other perks like lower transfer fees. It’s essential to compare offers from multiple issuers before making a decision. For example, one issuer might offer a 12 – month 0% APR, while another could provide a 15 – month period for the same type of card.
As recommended by credit comparison tools, comparing at least three to five different card issuers can help you find the best 0% APR promotion that suits your needs.
Qualifying conditions for 0% APR
Qualifying for a 0% APR promotion usually depends on your credit score. Lenders generally prefer borrowers with good to excellent credit scores. For example, if your credit utilization ratio is high (like having a ratio of 50% where you owe $10,000 on cards with a total credit line of $20,000), it might be more challenging to get approved for a card with a long 0% APR period.
Pro Tip: Before applying for a 0% APR card, work on improving your credit score by paying down existing debts and ensuring your payments are on time.
Key Takeaways:
- The 0% APR period on balance transfer credit cards typically ranges from 6 to 24 months, with common offers between 12 and 21 months.
- Different card issuers vary in the length of their 0% APR promotional periods, so it’s crucial to compare offers.
- Qualifying for a 0% APR promotion often depends on having a good to excellent credit score and a reasonable credit utilization ratio.
Try our credit card comparison tool to find the best 0% APR card for your needs.
Transfer fee analysis
According to a recent SEMrush 2023 Study, balance transfer fees play a significant role in the overall cost – effectiveness of using a balance transfer credit card. On average, these fees can have a notable impact on the amount you end up repaying.
Average balance transfer fees
Range from 3 – 5% of the amount transferred
Most balance transfer credit cards charge a transfer fee that typically ranges from 3% to 5% of the amount you transfer. For example, if you transfer $5,000 in high – interest credit card debt to a new balance transfer card, with a 3% balance transfer fee, you would need to pay an additional $150 on top of the $5,000 debt. This amount is added to your principal, and you’ll begin repayment on the combined total.
Average fee of 3.19%
Industry benchmarks show that the average balance transfer fee is around 3.19%. When considering a balance transfer, it’s important to account for this cost. If you’re transferring a large sum of debt, this seemingly small percentage can result in a substantial additional expense.
Pro Tip: Always verify the transfer fee before applying for a balance transfer credit card. Compare different cards to find the lowest possible fee.
Specific card transfer fees
Citi Simplicity® Card (3% within first 4 months, then 5%, min $5)
The Citi Simplicity® Card offers a unique fee structure. Within the first four months of opening the account, the balance transfer fee is 3%. After those four months, the fee jumps to 5%, with a minimum of $5. This means that if you’re planning to use this card for a balance transfer, it’s advantageous to make the transfer within the first four months to save on fees. For instance, if you transfer $3,000 within the first four months, you’ll pay a $90 fee. But if you transfer after four months, the fee would be $150.
As recommended by NerdWallet, it’s essential to carefully evaluate the fee structures of different cards to find the one that best suits your financial situation.
Negotiating and waiving fees
Some card issuers may be open to negotiating or waiving the balance transfer fee, especially if you have a good credit history. You can try calling the customer service of the card issuer and politely ask if they can reduce or eliminate the fee. For example, a customer with a long – standing relationship with a bank and an excellent credit score was able to get a 5% balance transfer fee waived by simply explaining their loyalty and financial responsibility.
Pro Tip: Be prepared to highlight your creditworthiness, such as your high credit score, on – time payment history, and long – term relationship with the bank when negotiating the fee.
Key Takeaways:
- Balance transfer fees typically range from 3% – 5% of the transferred amount, with an average of 3.19%.
- Different cards have unique fee structures, like the Citi Simplicity® Card which offers a lower fee within the first four months.
- You may be able to negotiate or waive the fee by demonstrating your creditworthiness to the card issuer.
Try our balance transfer fee calculator to estimate how much you’ll pay for your transfer.
Credit utilization impact
Did you know that credit utilization makes up about 30% of your credit score, according to a FICO study? This makes it a crucial factor in your overall credit health, and balance transfer credit cards can play a significant role in managing it.
Positive impact on credit utilization
Decrease in overall credit utilization rate
Getting approved for a new balance transfer card can lower your overall credit utilization ratio, which can help improve your score over time. Your credit utilization ratio is calculated by dividing your total credit card balances by your total credit limits. For example, if you owe a total of $10,000 on your credit cards and their credit lines add up to $20,000, your credit utilization ratio is 50%. In general, lenders favor credit utilization ratios below 30%.
Examples of utilization rate decrease
Let’s look at some real – world examples to illustrate how balance transfers can decrease your credit utilization rate. Suppose you’re carrying a balance of $10,000 on a single card with a $10,000 limit, giving you a 100% utilization rate. If you open a balance transfer card with a $5,000 limit and transfer $4,000 to that new card, your overall credit utilization decreases to 45% across both cards ($6,000 balance on the first card and $4,000 on the second, with a total limit of $15,000). And it keeps going down as you pay off the balances.
Pro Tip: Regularly monitor your credit utilization rate after a balance transfer. You can use free credit monitoring tools provided by many banks and credit bureaus. This will help you stay on top of your credit health and ensure that the balance transfer is having the intended positive impact.
Other factors related to balance transfer and credit
Hard inquiry on credit report
When you apply for a balance transfer credit card, the card issuer will typically perform a hard inquiry on your credit report. A hard inquiry can cause a temporary dip in your credit score, usually by a few points. According to a TransUnion study, a single hard inquiry can lower your score by up to 5 points.
As recommended by Credit Karma, it’s important to be strategic about when you apply for a balance transfer card. If you’re planning to apply for a major loan, like a mortgage, in the near future, it may be best to hold off on the balance transfer until after the loan is approved. This way, the hard inquiry won’t affect your chances of getting favorable loan terms.
Top – performing solutions include the Blue Cash Preferred® Card from American Express, which offers 0% intro APR for the first 12 months on purchases from the date of account opening (then 20.24% – 29.24%). Another great option is a card that offers 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% to 28.49% applies, with a balance transfer fee of up to 5% (min. $5) of the amount transferred.
Key Takeaways:
- Balance transfer credit cards can have a positive impact on your credit utilization rate, which is a major factor in your credit score.
- When applying for a balance transfer card, be aware of the hard inquiry on your credit report and its potential short – term impact.
- Choose a balance transfer card that suits your financial situation and goals, considering factors like the length of the 0% APR period and the balance transfer fee.
Try our credit utilization calculator to see how a balance transfer could affect your credit utilization rate.
Card issuer comparison
According to industry reports, different credit card issuers offer a wide range of balance transfer credit cards with varying 0% APR periods, fees, and additional perks. By understanding these differences, consumers can save a significant amount on interest payments. A SEMrush 2023 Study shows that on average, users can save up to $500 in interest annually by choosing the right balance transfer card.
Citi Cards
Citi is a well – known issuer in the credit card market, offering several attractive balance transfer cards.
Citi® Diamond Preferred® Card (21 – month 0% intro on balance transfers)
This card stands out for its long 21 – month 0% introductory APR period on balance transfers. For example, if you have a $5,000 high – interest credit card debt and transfer it to this card, you won’t accrue any interest for 21 months. This gives you ample time to pay down the principal without the burden of interest charges.
Pro Tip: Make a payment plan during the 21 – month period to clear your debt before the regular APR kicks in. As recommended by Credit Karma, creating a budget and setting up automatic payments can help you stay on track.
Citi Double Cash® Card (0% intro APR for 18 months on balance transfers in first 4 months)
The Citi Double Cash® Card offers a 0% intro APR for 18 months on balance transfers, but only if you initiate the transfer within the first 4 months of account opening. This is suitable for those who can quickly organize their balance transfer. Consider a situation where you owe $3,000 on a card with a high interest rate. Transferring this balance to the Citi Double Cash® Card can save you a substantial amount in interest over the 18 – month period.
Pro Tip: Mark the 4 – month deadline on your calendar to ensure you don’t miss out on the 0% intro APR for balance transfers. Top – performing solutions include using calendar apps with reminders.
Citi Simplicity® Card (Extra – long 0% intro APR on balance transfers, no late fees or penalty APR)
The Citi Simplicity® Card provides an extra – long 0% intro APR on balance transfers, along with the added benefit of no late fees or penalty APR. This is great for those who might accidentally miss a payment. For instance, if you forget to make a payment on time, you won’t be hit with a penalty APR or a late fee.
Pro Tip: Set up minimum payment reminders to avoid any issues with your credit score even without late fees. Try our credit card payment reminder tool to stay on top of your payments.
Other Cards
There are also other great balance transfer credit cards in the market. For example, the Wells Fargo Reflect® Card offers a 0 percent intro APR for 21 months from the date of account opening on purchases and qualifying balance transfers made within the first 120 days. And the Blue Cash Preferred® Card from American Express could give you 0% intro APR for the first 12 months on purchases from the date of account opening.
When comparing card issuers, it’s important to look at the length of the 0% APR period, balance transfer fees, and any additional benefits.
| Card Issuer | Card Name | 0% APR Period | Balance Transfer Fee | Additional Benefit |
|---|---|---|---|---|
| Citi | Citi® Diamond Preferred® Card | 21 months | Varies | Long 0% APR period |
| Citi | Citi Double Cash® Card | 18 months (if within 4 months) | Varies | |
| Citi | Citi Simplicity® Card | Long period | Varies | No late fees or penalty APR |
| Wells Fargo | Wells Fargo Reflect® Card | 21 months (on qualifying transfers within 120 days) | Varies | |
| American Express | Blue Cash Preferred® Card | 12 months on purchases | Varies |
Key Takeaways:
- Different card issuers offer balance transfer cards with varying 0% APR periods and fees.
- Citi cards provide long 0% APR periods and unique features like no late fees.
- When choosing a balance transfer card, consider your ability to pay off the debt within the 0% APR period and the card’s additional perks.
FAQ
What is a balance transfer credit card?
A balance transfer credit card allows cardholders to move existing debt from one or more high – interest credit cards to the new card. This often comes with a 0% APR promotional period, which can range from 6 to 24 months. According to a SEMrush 2023 Study, it helps manage debt more effectively. Detailed in our 0% APR card promotions analysis, this can save on interest charges.
How to choose the right balance transfer credit card?
First, assess your debt – repayment timeline. If you have a small debt, a 6 – month 0% APR period might suffice; for larger debts, longer periods are better. Second, compare transfer fees, which typically range from 3 – 5% of the transferred amount. Third, consider your credit score as it affects eligibility. Industry – standard approaches suggest using credit comparison tools.
0% APR balance transfer cards vs regular credit cards: What’s the difference?
Unlike regular credit cards, 0% APR balance transfer cards offer an introductory period with no interest on transferred balances. Regular cards usually start charging interest immediately. The 0% period on balance transfer cards, which can last 6 – 24 months, allows users to pay down debt faster. This is detailed in our 0% APR card promotions section.
Steps for negotiating a balance transfer fee waiver?
- Check your creditworthiness, including a high credit score and on – time payment history.
- Call the card issuer’s customer service and politely request a fee waiver.
- Highlight your long – term relationship with the bank, if any.
Some card issuers may be open to negotiation, especially if you demonstrate strong credit. Detailed in our transfer fee analysis. Results may vary depending on your individual credit situation and the policies of the card issuer.
