The best practice for using any credit card is to pay it off, in full, every month. You’ll avoid
interest charges and see your credit score go up regularly. However, life isn’t always that easy
or black and white. A 2021 study revealed that roughly half of the 176 million American credit
card holders carry a balance over from month-to-month. If you’re one of them, it might be time to
consider a balance transfer.
What is a Balance Transfer?
A balance transfer is when you open up a new credit card and then use it to pay off the entire
balance of your existing credit card. You are, as the name implies, transferring the balance from
one card to another. But why would you do this?
Many credit card companies offer attractive balance transfer terms. Most commonly, they may
not charge you any interest on the new balance for a certain amount of time. If you can commit
to paying off the balance before the 0% APR bonus expires, you’ll save a lot of money. You
should watch out for balance transfer fees, though. They are a different charge that can eat
away at any interest charge savings you might gain from a balance transfer offer.
Wells Fargo Reflect Card
When it comes to balance transfer offers, the Wells Fargo Reflect credit card is one of the best
deals around. It offers a full 18 months of 0% APR on balance transfers, plus an additional three
months of no interest if you make on-time minimum payments during the intro period.
Altogether, that’s 21 months of zero interest charges on your balance transfer.
You need to make the balance transfer within 120 days of opening your card. Otherwise, it
comes with a fee (5% or $5, whatever is greater).
After the balance transfer offer, the card is fairly standard. It has no annual fee and a 16% to
28% variable APR. Unfortunately, there isn’t really much of a rewards program to speak of. Still,
it could save you a ton of money just by utilizing the balance transfer terms. Then just stick it in
your sock drawer forever.
Citi Diamond Preferred Card
Not only does the Citi Diamond Preferred card offer 21 months of 0% APR on balance transfers,
but it also boasts a 12-month 0% APR introductory period for all other purchases too. That’s a
generous term of not charging any interest.
With no annual fee and a regular APR between 16% and 27% (after the first year), the Citi
Diamond Preferred card is an excellent choice to save on interest. However, there is a balance
transfer fee of 5% or $5 (whichever is higher). You can somewhat balance that out by earning
the $150 welcome bonus, by spending $500 in your first three months.
Once the 0% APR periods are over, you may want to consider switching cards. This card
doesn’t offer a rewards program of any kind and has a steep 29.99% penalty APR for late
payments. It’s great for balance transfers, but maybe not much else.
BankAmericard Credit Card
The BankAmericard from Bank of America is extremely similar to the Citi Diamond Preferred
card. It has no annual fee and offers up to 21 months of 0% APR on both balance transfers and
regular purchases. The balance transfers must be made within 60 days of opening an account,
though.
The balance transfer fee is slightly cheaper than some competing cards, at just 3% or $10
(whichever is higher). This card also doesn’t have a penalty APR, meaning you won’t get
charged extra interest if you are late with a payment.
After the introductory periods are over, this card actually offers one of the lowest APRs around –
if your credit is good enough, that is. The APR range offered is between 15% and 25%.
Unfortunately, this card doesn’t offer a rewards program, making it less attractive after those first
21 months are over.
Citi Double Cash Card
The Citi Double Cash Card is a great choice for those who want an attractive balance transfer
option, but also want to continue to use the card long after the introductory terms expire.
Let’s start with the balance transfer details. The Citi Double Cash credit card offers a 0% APR
for 18 months and charges a 3% or $5 fee, whichever is higher. It’s not quite the 21 months that
some other cards offer, but it’s still pretty good.
After that, you’ll pay between 17% and 27% APR, depending on your credit. There is no
introductory APR period for purchases, unfortunately. The good news is that this card does have
a decent rewards program. You’ll get 2% cash back on purchases that are paid off of time.
There’s also a one-time $200 welcome bonus for spending at least $1,500 in the first six
months.
Discover it Balance Transfer Card
The Discover it Balance Transfer credit card is obviously a strong candidate for anyone looking
to transfer their balance. After all, it’s advertised right there in the name of the card.
As promised, this card offers a 0% APR for 18 months on all balance transfers. There’s also a
six month 0% APR period for regular purchases. After that, everything will convert to an APR
between 15% and 26%. All of it comes with no annual fee.
This card continues to shine even after the 0% APR terms are over. You’ll get 5% cash back on
a handful of common spending categories, and 1% back on everything else. Discover will
automatically double your cash back amount at the end of your first year!
