What are the Benefits of a Balance Transfer Card?

A balance transfer card can offer several benefits for you, such as:

• Lower or zero interest rate: A balance transfer card can offer you a lower or zero interest rate on your transferred balance for a certain period of time, usually from 12 to 21 months. This can help you save money on interest, and reduce your monthly payments.
• Faster debt repayment: A balance transfer card can help you pay off your debt faster, as more of your payments will go towards the principal, rather than the interest. This can help you get out of debt sooner, and improve your credit score.
• Simplified payments: A balance transfer card can help you simplify your payments, as you will only have one card to manage, rather than multiple cards with different due dates, interest rates, and balances. This can help you avoid late fees, penalties, and confusion.

What are the Costs and Risks of a Balance Transfer Card?

A balance transfer card can also have some costs and risks for you, such as:

• Balance transfer fee: Most balance transfer cards charge a fee for transferring your balance, usually from 3% to 5% of the amount transferred. This fee can add up to a significant amount, depending on how much you transfer and how often you do it. Therefore, you need to factor in the fee when calculating your potential savings and choosing a balance transfer card.
• Interest rate after the introductory period: Most balance transfer cards offer a lower or zero interest rate only for a limited period of time, after which the rate will revert to a higher or variable rate. This rate can be higher than your original rate, depending on your credit score and the card’s terms and conditions. Therefore, you need to pay attention to the rate after the introductory period, and plan to pay off your balance before it ends, or transfer it to another card with a lower rate.
• Credit score impact: A balance transfer card can affect your credit score, both positively and negatively. On the positive side, a balance transfer card can help you lower your credit utilization ratio, which is the percentage of your available credit that you use, and improve your payment history, which are two major factors in your credit score. On the negative side, a balance transfer card can also lower your credit score, if you apply for too many cards in a short period of time, which can result in hard inquiries on your credit report, or if you close your old cards, which can reduce your credit history and credit mix, which are also important factors in your credit score. Therefore, you need to be careful and strategic when applying for and using a balance transfer card.

How to Choose a Balance Transfer Card?

Choosing a balance transfer card can be challenging, as there are many factors to consider, such as:

• Introductory interest rate and period: The introductory interest rate and period are the most important features of a balance transfer card, as they determine how much you can save on interest, and how long you have to pay off your balance. You should look for a balance transfer card that offers a zero or low interest rate, and a long introductory period, preferably 18 months or more. However, you should also be realistic and choose a balance transfer card that matches your debt amount and repayment ability, as you may not be able to pay off your balance within the introductory period, or you may not qualify for the best offers, depending on your credit score and income.
• Balance transfer fee: The balance transfer fee is another important factor to consider, as it can affect your potential savings and your budget. You should look for a balance transfer card that charges a low or no balance transfer fee, or that offers a fee waiver or a credit for the fee, if you meet certain conditions, such as transferring a minimum amount or making a minimum payment. However, you should also compare the fee with the interest rate and the introductory period, as a balance transfer card with a higher fee but a lower rate and a longer period may still be a better deal than a card with a lower fee but a higher rate and a shorter period.
• Regular interest rate and fees: The regular interest rate and fees are also important factors to consider, as they will apply after the introductory period ends, or if you make new purchases or cash advances with the balance transfer card. You should look for a balance transfer card that offers a low or reasonable regular interest rate and fees, such as the annual fee, the late fee, the penalty fee, the foreign transaction fee, etc. However, you should also avoid using the balance transfer card for new purchases or cash advances, as they may not have the same interest rate or grace period as the transferred balance, and they may increase your debt and reduce your savings.

8 Best Balance Transfer Cards of 2024

Based on the criteria mentioned above, here are eight of the best balance transfer cards of 2024, along with their key features and statistics:

• Citi® Diamond Preferred® Card: This card offers a 0% introductory APR for 21 months on balance transfers and 12 months on purchases, which is one of the longest periods in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, and no annual fee. The card’s regular APR ranges from 18.24% to 28.99%, depending on your creditworthiness. The card has a four-star rating from Bankrate¹, and a 4.8 rating from NerdWallet².
• U.S. Bank Visa® Platinum Card: This card offers a 0% introductory APR for 20 months on balance transfers and purchases, which is also one of the longest periods in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, and no annual fee. The card’s regular APR ranges from 18.74% to 29.74%, depending on your creditworthiness. The card has a five-star rating from Bankrate¹, and a 5.0 rating from NerdWallet².
• Wells Fargo Reflect® Card: This card offers a 0% introductory APR for 18 months on balance transfers and purchases, which is a competitive period in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, for the first 120 days, and 5% or $5, whichever is greater, after that, and no annual fee. The card’s regular APR ranges from 18.24% to 29.99%, depending on your creditworthiness. The card also offers cell phone protection, which can reimburse you up to $600 per claim for damage or theft of your cell phone, if you pay your monthly bill with the card. The card has a five-star rating from Bankrate¹, and a 5.0 rating from Forbes Advisor³.
• Citi® Double Cash Card: This card offers a 0% introductory APR for 18 months on balance transfers, which is a competitive period in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, and no annual fee. The card’s regular APR ranges from 19.24% to 29.24%, depending on your creditworthiness. The card also offers cash back rewards, which can earn you 2% on every purchase, 1% when you buy and 1% when you pay. The card has a four-star rating from Bankrate¹, and a 4.6 rating from NerdWallet².
• Chase Freedom Flex℠: This card offers a 0% introductory APR for 15 months on balance transfers and purchases, which is a decent period in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, and no annual fee. The card’s regular APR ranges from 18.24% to 28.99%, depending on your creditworthiness. The card also offers cash back rewards, which can earn you 5% on up to $1,500 in combined purchases in bonus categories each quarter you activate, 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstore purchases, and 1% on all other purchases. The card also offers a $200 bonus after you spend $500 on purchases in the first three months from account opening. The card has a four-star rating from Bankrate¹, and a 4.8 rating from NerdWallet².
• Bank of America® Customized Cash Rewards credit card: This card offers a 0% introductory APR for 15 months on balance transfers and purchases, which is a decent period in the market. The card also has a low balance transfer fee of 3% or $5, whichever is greater, and no annual fee. The card’s regular APR ranges from 18.24% to 28.74%, depending on your creditworthiness. The card also offers cash back rewards, which can earn you 3% cash back in the category of your choice, such as gas, online shopping, dining, travel, drugstores, or home improvement/furnishings, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. The card also offers a $200 bonus after you spend $1,000 on purchases in the first 90 days from account opening. The card has a four-star rating from Bankrate, and a 4.4 rating from NerdWallet.
  • Discover it® Balance Transfer: This card offers a 0% introductory APR for 14 months on balance transfers and purchases, which is a good period in the market. The card also has no balance transfer fee for transfers made by February 10, 2024, and no annual fee. The card’s regular APR ranges from 18.24% to 29.24%, depending on your creditworthiness. The card also offers cash back rewards, which can earn you 5% cash back on up to $1,500 in purchases in rotating categories each quarter you activate, such as grocery stores, restaurants, gas stations, etc., and 1% cash back on all other purchases. The card also offers a cash back match, which can double all the cash back you earn at the end of your first year. The card has a four-star rating from Bankrate, and a 4.6 rating from NerdWallet.
  • Amex EveryDay® Credit Card: This card offers a 0% introductory APR for 15 months on balance transfers and purchases, which is a decent period in the market. The card also has no balance transfer fee for transfers made within 60 days of account opening, and no annual fee. The card’s regular APR ranges from 18.24% to 28.74%, depending on your creditworthiness. The card also offers rewards points, which can earn you 2x points at US supermarkets on up to $6,000 per year in purchases, and 1x points on all other purchases. The card also offers a 20% bonus on points earned each billing period when you make 20 or more purchases. The card has a four-star rating from Bankrate, and a 4.5 rating from NerdWallet.

  These are some of the best balance transfer cards of 2024, but there are many others as well. You can also use online tools, such as CreditCards.com, CardRatings.com, or WalletHub, to search, compare, and apply for different balance transfer cards based on your preferences and goals.

  Conclusion

  A balance transfer card is a credit card that allows you to transfer your existing debt from one or more cards to a new card with a lower or zero interest rate. This can help you save money on interest, pay off your debt faster, and simplify your payments. However, not all balance transfer cards are the same. Some of them may have different fees, terms, and benefits than others. Therefore, you need to compare and choose the best balance transfer card for your needs and goals. We hope that this article has given you some useful information and tips on how to find and buy the best balance transfer cards of 2024, and we wish you all the best in your debt management and financial wellness.