Balance Transfer Credit Card can transfer an accumulated balance from one or more high-priced credit cards to one with a balance transfer offer, potentially saving you hundreds or even thousands of dollars in interest fees. We’ve spent thousands of hours analyzing the credit card market to identify the best credit cards for balance transfers.
The best balance transfer cards are those that drop APRs to or near zero and do so over a long period. Credit card companies that keep transfer fees to a minimum and make it easy to transfer are preferable to those that make you jump through hoops.
Table of Contents
- 1 3 Best Balance Transfer Credit Card
- 2 Citi Diamond Preferred Balance Transfer Credit Card
- 3 U.S. Bank Business Platinum Balance Transfer Credit Card
- 4 What is a balance transfer?
- 5 How do balance transfers work?
3 Best Balance Transfer Credit Card
Citi Simplicity Balance Transfer Credit Card
The Citi Simplicity Card offers a great intro APR for balance transfers. You can enjoy 0% APR for 21 months on transferred balances, an arrangement that will save you a lot of money if you have high-interest debt on another card. There are no annual fees, late fees, or penalty rates, but note that they charge $5 or 5% of the amount of each transfer, whichever is greater.
- A great offer of 0% APR on balance transfers
- 0% introductory APR on new purchases
- There are no penalties or annual fees
- 3% foreign transaction fee
- There is no rewards program
- There is no one-time offer
If you have credit card debt and need some interest-free time to pay it off, signing up for a Citi Simplicity card makes a lot of sense. You’ll get 21 months at a 0% APR on qualified balance transfers, giving you nearly two years to reduce or eliminate your debt without incurring excessive interest charges. The offer can help you save hundreds or even thousands of dollars in interest.
However, the Citi Simplicity card has little to recommend once your debt is paid off. Next, consider signing up for a rewards credit card like Chase Freedom Unlimited. Like the Citi Simplicity Card, the Chase Freedom Unlimited Card has no annual fee. However, you will get unlimited 1.5% cash back on every purchase.
Citi Diamond Preferred Balance Transfer Credit Card
The Citi Diamond card offers a fairly long 0% introductory period — currently 21 months — on balance transfers made within the first four months of account opening and for 12 months on purchases. They also don’t charge an annual fee while offering access to discounted tickets and VIP experiences.
- Extended offer 0% APR
- Exclusive access to concerts, sporting events and VIP packages
- No annual fee
- 5% balance transfer fee.
- 3% foreign transaction fee
A generous 21-month APR with 0% on balance transfers makes the Citi Diamond Preferred Card an ideal choice if you’re hoping to speed up debt payments. You have more time to pay off the principal, and if the interest savings are enough to beat the balance transfer fee, this card may be for you.
However, there are better options if you are looking for more traditional rewards. Suppose you like the idea of accessing Citi cardholder benefits while you get cash back. In that case, the Citi Double Cash Card offers unlimited 1% cash back when you shop, plus an additional 1% cash back when you pay for purchases, and currently has 0. % APR for 21 months and to enhance balance transfers.
Other rewards cards, such as Capital One Venture One, allow you to earn on travel with no annual or foreign transaction fees. Plus, there’s a 0% APR offer for 12 months on purchases.
U.S. Bank Business Platinum Balance Transfer Credit Card
The US Bank Business Platinum Card offers no unique rewards or offers other than an introductory 0% APR on purchases and balance transfers for the first 20 billing cycles. This card can be a good choice for business owners who want to pay off large purchases or balance transfers over time without accruing interest charges.
- Offer a generous 0% APR, plus the possibility of an ongoing low APR
- No annual fee
- No bonuses or rewards
- Minimal benefits
- US Bank’s small business credit card customer service could be better.
U.S. card The Bank Business Platinum is worth first – or maybe only – a look at if you’re interested in a no-cost business credit card that offers an introductory 0% APR on both purchases and balance transfers for a period of a very long time. It is not easy to find such an offer with a card that does not have an annual fee.
On the other hand, if these conditions don’t apply to you, you’ll likely consider using other business credit cards. Even other U.S. Bank business cards may be better options, though consider the bank’s poor customer satisfaction rating.
The American Bank Triple Cash Rewards Visa Business Card offers 3% cash back on qualifying gas, electric vehicle recharge, restaurant, office supply store and cell phone providers, and 1% cash back on all other purchases. But this card, like the U.S. Bank Business Platinum, charges a foreign transaction fee, making the card a questionable option for travel or overseas orders.
What is a balance transfer?
A balance transfer is transferring existing debt, usually from another credit card, to a new credit card account. A balance transfer usually includes a special promotional interest rate much lower than the existing debt. The promotional rate is often 0% APR and can be offered for some time, usually 12-21 months. It gives those with debt a long period to pay off a balance without incurring interest.
How do balance transfers work?
Balance transfers usually begin immediately after opening a new credit card account. A potential complication of this timing is that the credit limit is known once the new account is approved. So the amount you’re allowed to transfer can only be determined after you’ve applied.
So, look for a balance transfer card to move $10,000 off your existing card debt but still qualify for only a $5,000 line of credit on your new account. Continue to pay high interest on half of the debt or seek alternative low-cost financing.
Balance transfers are usually subject to a transfer fee (ranging from 3% to 5% of the transferred balance). These fees may be waived as part of the initial promotional period. However, this is relatively rare because card issuers often rely on fees to generate revenue from balance transfer offers.