How Balance Transfer Credit Cards Work
Balance transfer cards allow you to transfer over existing credit card balances from other credit cards to your new card. Do the math to verify that the offer is worth any fees incurred.
Once you’re approved for your balance transfer card, you are ready to transfer a credit card balance. Here’s how the process works:
Request a transfer
Contact your new credit card issuer to request to transfer over an existing balance from another card. You can do that by calling the customer service number on the back of your card. Your card issuer may allow you to request transfers online or through its mobile app too. You will be asked for specific information about the debt you are transferring, like the account number and balance amount. Depending on card limits, you could get approved for transferring all or a portion of the existing balance.
Continue making payments on the old card.
Balance transfers take time to be approved and processed. The process can potentially take weeks to be finalized. Continue to make minimum payments on your old card until the balance has been moved to the new card. Failure to make payments on the old card before that time could result in costly late payments.
Plan your debt payoff
Once the balance is moved over to the new card, plan to pay it off within the introductory period. Divide the total transferred balance by the promotional period’s length to determine how much you need to pay each month. If you make purchases on the new card during that time, you’ll need to factor them into your calculations too. You can also make extra payments to pay off the debt even faster.
Depending on the card issuer, you may be able to transfer over other debt balances besides credit cards, like auto loans, student loans, and personal loans. Check with the card issuer or read through the card’s terms and conditions to determine what types of debt they allow to be transferred to a credit card. Most card issuers only allow you to move over balances on cards issued by other credit card companies.
Who Should Consider a Balance Transfer?
Balance transfers are best for individuals with high-interest debt who have good enough credit to qualify for a 0% interest balance transfer card. They are also great for those who need extended time to pay off their balance.
A balance transfer might not be the best option for individuals with low balances on existing cards or those with poor credit. Avoid balance transfers if you have no intention of paying off your balance.
Planning for a balance transfer can be a tricky task. A good solution would be to gather information from all available sources on which are the best credit card companies to transfer your remaining balance from the previous account. So, in conclusion, below are listed three of the best credit cards for balance transfers:
Balance transfer credit cards offer an enticing way to pay down debt. With no interest for up to 21 months, these 0% cards can take the stress out of the budget.
There’s just one problem, the balance transfer fee.
Credit card companies typically charge 3% or 4% of the amount transferred as a fee. This fee is then added to your balance on the new card. While this may still be a good deal, an even better deal would be a no-fee balance transfer. But there’s a catch.
They are hard to find.
Best balance transfer credit cards come from lesser-known credit card companies. For this reason, we’ve spent hours researching the available offers. We’ve found six options that we think are worth considering.
To lead those options is a limited-time offer from American Express. While you may not think of American Express and balance transfer in the same sentence, they are making a big play to increase their customer base. Take note; it’s a tremendous offer.
Best Balance Transfer Credit Cards
Amex EveryDay® Credit Card from American Express – A brand new card on our list, the Amex Everyday Credit Card from American Express is currently offering a limited-time promotion. 0% intro APR on both purchases and balance transfers for 15 months with NO balance transfer fee (if the transfer is made inside of the first 60 days of account opening).
This card immediately moves to the #1 spot on our list because it’s the only credit card that offers an intro APR on both purchases and balance transfers, with no balance transfer fee.
As a bonus, the Amex EveryDay® Credit Card from American Express also has a 10,000 Membership Rewards Points bonus after spending $1,000 in the first three months. Normally, I would not advocate using a balance transfer credit card for spending; but this one includes a great rewards program and bonus and charges NO annual fee. Without a doubt, if you have the excellent credit required to obtain this card and could benefit from 15 months of no interest and no fees, this is the best card on the market today.
Alliant Credit Union Visa® Platinum Card – Lowering the intro period by three months, the Alliant Credit Union Visa® Platinum Card offers new cardmembers a 0% intro APR on purchases and balance transfers for 12 months with no balance transfer fee. After the introductory rate expires, the standard APR becomes a 9.99% – 21.99% variable based on credit history. The Alliant Credit Union Visa Platinum Card charges no annual fee or foreign transaction fees.
To be approved for this card, you must be a member of the Alliant Credit Union. The easiest way to achieve this is by making a one-time $10 donation to the Foster Care to Success charity group, but membership can also be acquired by being a member of a qualifying organization or working within the Chicagoland community.
Edward Jones Mastercard® – This is admittedly the credit card with the best overall offer. The Edward Jones Mastercard® includes a 0% intro APR on balance transfers for the first 12 months. There is no balance transfer fee if the balance is transferred within the first 60 days. Also included for first-time cardholders is a $100 bonus after spending $500 in the first 90 days of account ownership. After the intro APR expires, the variable interest rate becomes 13.74%.
The Edward Jones Mastercard® also includes a robust rewards program where up to 2 points per dollar spent are earned on all purchases. There is no annual fee to own this card and no foreign transaction fees, but the rub is that you must be an Edward Jones client, which makes this card very exclusive. Excellent credit is required (no FICO score guidance).
Aspire Platinum Rewards MasterCard® – New cardmembers of the Aspire Platinum Rewards MasterCard® will receive a 0% intro APR on balance transfers for six months with no balance transfer fee. Standard purchase and balance transfer APR are 10.99% – 21.99% variable, and there is no annual fee. Also included for new applicants is a 5,000-bonus point reward after spending $2,000 in the first three months. The spending requirement includes any balance transfer you make.
You must be an Aspire Credit Union member to apply for this card. Membership is available to employees of participating organizations, their immediate family members, and their household members. Alternatively, you can make a $5 donation to the American Consumer Council.
Navy Federal Platinum – Last on our list is the Navy Federal Platinum (available in both Visa and MasterCard). Unfortunately, this card does not offer a 0% intro APR opportunity. It does include fee-free balance transfers and a standard variable interest rate of 8.74% – 18.0%. By far, that’s the lowest interest rate range on a no-fee balance transfer credit card. If you have trouble getting approved for the cards above, you can still save money with this card.
The Navy Federal Platinum card does not charge an annual fee or foreign transaction fees. This card does require good to excellent credit. New applicants can sneak in with a FICO score of 660 or better. However, you must be a member of the Navy Federal Credit Union in order to apply. That requires that you or a family member serve in the military.
Best Balance Transfer Credit Card w/ a BT Fee
The biggest downside to the available no-fee balance transfer options above is the length of the 0% introductory offer. A 0% APR for 15 months is good. There are other cards on the market, however, that have a longer deal. Some offer 0% intro APR on balance transfers for 18 months. There are even cards that offer 0% for 21 months.
In either situation, the most important thing you can do if you’re struggling to pay down your credit card debt and have the quality credit score needed for one of the best balance transfer credit cards above is to apply and transfer the credit card balance with the highest interest rate as fast as you can.
How to Choose
As you consider your options, keep the following in mind:
Balance transfer fees are just part of the equation: While it’s a good feeling to get something for free, the fees are just part of the equation. You should also consider the length of the 0% balance transfer offer. That’s why we included the Citi Simplicity® Card on our list of no-fee offers.
You may want multiple balance transfer cards: You may need more than one card. This is particularly true if you have a lot of credit card debt to transfer. A single card may not give you the credit limit you need to transfer all your debt. In this case, you may select no-fee cards as well as longer 0% offers.
Same issuer transfers are not allowed: Most credit card companies prohibit transfers between two of their own cards. Keep this in mind as you are mapping out your strategy.
Credit unions have some excellent offers: Included in our list are cards from credit unions. While you may need to jump through some hoops to qualify, it may well be worth the effort.
Keep balance transfer cards separate: It’s best not to use a balance transfer card for spending. The goal of a balance transfer is to help you get out of debt. Spending more on the cards may derail your efforts.
Have a plan when the 0% offer expires: If you can’t pay off the debt before the end of the introductory offer, have a plan. This may include transferring the remaining balance to another 0% credit card.
Discover More Card
The Discover More Card offers card owners a chance to save more money from their everyday transactions. It offers a low introductory annual percentage rate or APR on balance transfers to new customers when transferring balances from credit cards and loans with high-interest rates as well as on outgoing purchases. You can also get unlimited Cashback Bonuses, which allows you to get cash back from all your purchases such as travel, home, clothing, restaurants, and more. Some of the detailed features of the Discover More Card include:
- Cash bonuses at top online retailers that are up to 20%.
- No annual fees
- Online services such as account access and bill payments
- Get More: an easy way to gain rewards for free. You can get 5% in Cashback Bonuses under popular categories like travel, home, apparel, movies, restaurants, and lots more.
Citi Platinum Select Card
The Citi Platinum Select card offers its customers 0% annual percentage rates on balance transfers and purchases for up to twelve months. Aside from this, security on your account and personal information is assured with the Citi Identity Theft Solutions feature that is included in your credit card plan. You get all kinds of protection for safer online shopping, protection from credit card fraud, and a lot more.
Some of these defenses include the Citi Photocard, Virtual Account Numbers, Retail Purchase Protection, and more. All these you can avail yourself for free, along with a $1,000,000 travel and car rental insurance that you can avail of when you change your travel tickets and car rentals to your Citi Platinum Select card.
Blue Cash Card from American Express
Features of the Blue Cash card include:
- 5% cash back on your everyday purchases, including gasoline
- No annual fees
- 12 months of 0% introductory annual percentage rate
- A low balance transfer rate – a fixed APR standard of 4.99%
With all this, you can be assured of quality services with your Blue Cash cards, such as earning up to 5% cash back from almost all your everyday purchases at supermarkets, malls, and other retail stores. If you are interested, you can easily get your own Blue Cash card in just 60 seconds.
