If you’re trying to pay off debt, a 0% balance transfer credit card could save you hundreds–even thousands–of dollars in interest payments. I took advantage of multiple 0% interest offers from several credit card companies on my own journey to debt freedom. In fact, I continued to roll my debt over to new balance transfer cards for several years until our debt was finally paid off.
To begin with, let’s review the best offers currently available based on our rating methodology that is described at the end of this article.
|Credit Card||Best For|
|Blue Cash Everyday® Card from American Express||Paying balances quicker and earning cash back rewards|
|Wells Fargo Platinum Visa®||Taking more time to pay off balance transfers and perks like cell phone protection|
|Capital One® Quicksilver® Cash Rewards Credit Card||Paying balances quicker and earning an easy bonus|
|Chase Freedom||Paying off balance transfers quicker, earning cash back rewards and an easy bonus|
The Best Balance Transfer Credit Card of 2020:
Blue Cash Everyday® Card from American Express
The Blue Cash Everyday® Card from American Express offers a little bit of everything. First it offers a 0% APR for 15 months on balance transfers and purchases.
You also get excellent cash back rewards:
- $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
- 2% cash back at U.S. gas stations and at select U.S. department stores
- 1% back on other purchases.
On top of all of the above, the card has no annual fees.
Best for: Paying balances quicker and earning cash back rewards. The 0% APR for 15 months is great, but you can find other cards with a longer promotional period. On a positive note, you’ll be encouraged to pay your balance off within that 15-month time frame. You’ll also likely want to keep this card in your pocket as it earns decent cash back rewards.
Balance Transfer Offers
The Wells Fargo Platinum Visa® Card offers 0% on balance transfers AND purchases for 18 months. There is no annual fee. It also offers a unique benefit that we’ve not seen from other credit cards:
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum Visa® Credit Card
Bottom Line: The Wells Fargo Platinum Visa® Card offers an excellent balance transfer offer along with an interesting perk for those looking to protect their cell phone. The no annual fee is also a big plus.
Best for: Taking more time to pay off balance transfers and perks like cell phone protection. The balance transfer fee is 3% (minimum $5) for the first 120 days of opening an account, then it goes up to 5%. The 3% fee is better than 4%, but you’ll definitely want to steer away from that 5% fee and make your balance transfers immediately. You’ll also enjoy 18 months of 0% APR to help make payments manageable. We also can’t ignore that $600 cell phone protection benefit, it’s a nice bonus. Cell phones these days cost as much as a computer!
Capital One also offers cards with 0% intro offers that combine rewards. With the Capital One® Quicksilver® Cash Rewards Credit Card, you’ll get a 0% intro APR on purchases and balance transfers for 15 months. The standard APR is 15.49% – 25.49% variable.
While that’s not the longest offer available, there’s another huge perk with this card; its rewards:
- You earn unlimited 1.5% cash back on every purchase, every day
- One-time $150 cash bonus after you spend $500 on purchases within three months of approval
Bottom Line: The Capital One® Quicksilver® Cash Rewards Credit Card offers excellent everyday cash back rewards, a chance to earn a $150 bonus, and great 0% terms
Best for: Paying balances quicker and earning an easy bonus. The one (minor) advantage of going with a 15-month introductory APR over the 18-months you’ll find elsewhere, is the motivation to pay off that debt. Also, using this card to pay some bills including groceries, gas, and utilities, could easily help you earn that $150 cash bonus! We’d also suggest putting that bonus toward paying down your balance even quicker!
The Chase Freedom offers a card that combines a solid balance transfer with excellent rewards. The 0% lasts for 15 months on both balance transfers and purchases. The transfer fee is 3% for the first 60 days (minimum $5), then 5%. In exchange, you get a card with excellent cash back rewards.
- Get a $150 bonus after spending $500 on purchases in your first three months from account opening
- Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
- Earn 1% cash back on all other purchases
Best for: Paying off balance transfers quicker, earning cash back rewards and an easy bonus. If you can make a plan to pay your balance in 15 months while also using your card to pay some bills and do your daily spending to earn that $150 bonus, this might be the card for you. The 5% cash back opportunity on bonus category purchases is a great perk.
How Balance Transfer Credit Cards Work
Listen to my discussion on how to use balance transfer cards effectively
Balance Transfer Terminology
Let’s start with some important terminology. Here are the key terms you’ll see throughout this guide and when you apply for a card:
- APR: Short for Annual Percentage Rate. This is the amount of interest the card company charges annually.
- Introductory APR: This is the interest rate you’ll be charged during the Introductory Rate Period (see next term). For all of the cards in this study, the Introductory APR is 0%.
- Introductory Rate Period: Usually expressed in months, this is how long the Introductory APR lasts. In some cases, the IRP is expressed in billing cycles, which generally are on a monthly basis.
- Regular APR: This is the APR that will apply once the Introductory Rate Period expires.
- Transfer Fee: The fee credit card companies charge on balance transfers. Most cards charge a fee of 3% of the amount transferred. For example, transferring $1,000 would cost $30 ($1,000 x 3% = $30). The card company adds the transfer fee on top of the amount transferred, increasing the total amount of the debt. Note that most cards have a minimum balance transfer fee of $5 or $10.
- Billing Cycle: The period of time used to determine the charges that will appear on a credit card bill and the interest incurred. Billing cycles are generally monthly, although they frequently do not begin on the first day of the month or end on the last day. A credit card statement reflects the charges on the card during the previous billing cycle.
How to Transfer a Balance
A balance transfer enables you to take an existing balance on a credit card or other debt and transfer it to a new card. When you apply for a balance transfer card, the online application includes a place to list the existing credit card balances you wish to transfer.
It’s here that you would list your existing credit card debt you wished transferred to the new card. Once you’re approved for the card, the credit card company will contact the card issuers you listed in the application to initiate the balance transfer.
It’s important to continue making the required minimum payments on the old debt until you have confirmation that the balances have been transferred to your new credit card.
Types of Debt That Can Be Transferred
This can be tricky. Unfortunately, credit card issuers don’t make it easy to determine exactly what type of debt can be transferred to a 0% card. For this report, I spent hours talking to credit card issuers either on the phone or via online chat to understand what types of debt can be transferred. Here’s what I learned.
Credit Card Debt
Most balance transfers are used to pay off other high interest credit cards. As noted above, these debts can often be listed in the online application for the new card. Once approved for the card, the issuer will initiate the transfer electronically.
It can take a few days to more than a week for the transfer to be completed. During this time it’s important to make any minimum payments on your existing debt.
Non-credit card debt
Most credit card issuers today allow you to transfer all kinds of debt. There are, however, exceptions. Further, the card issuers often do not disclose what types of debt you can transfer on their websites.
For this article, I reached out to Discover, Capital One, American Express, and Barclaycard.
Barclaycard: You can transfer balances from any Visa, MasterCard, Discover, or American Express credit card online. As part of the application process, you’ll be prompted to enter the account number of the credit card balances you wish to transfer.
If you want to transfer other types of debt, Barclaycard prompts you to contact them by phone once you receive your credit card. From Barclaycard’s website: “If you would like to complete a balance transfer from another account that is not a Visa, MasterCard, American Express, or Discover card, please call the phone number on the back of your credit card once you are approved.”
Discover: A Discover representative informed me that you can transfer any debt not linked to a checking account. Transferrable debts include car loans, home loans, and medical debt. Transfers of credit card debt can be initiated online as part of the application process. For other types of debt, you’ll need to call Discover.
Capital One: With Capital One you can transfer just about any type of debt. Further, you can initiate the transfer online:
American Express: With American Express you are limited to transferring credit card debt.
The credit limit extended by the balance transfer card is critical to managing your debt. You won’t know in advance how much credit you’ll receive. It depends on a number of factors, including your credit score. As a result, there’s no way to know in advance whether the balance transfer card will have a credit limit high enough to cover all the balances you want to transfer.
The approach I took was to apply for one transfer card at a time. You can use the available credit to transfer as much of your existing credit card debt as possible. If you still have high-interest debt you couldn’t transfer due to the credit limit, you can then apply for a second balance transfer card.
There’s one important caveat when it comes to American Express. As I was digging through its terms and conditions, I found a provision that limits balance transfers to no more than $7,500 or 75% of your credit limit, whichever is less:
Balance Transfers: Only balance transfers from accounts in your name requested within 30 days from the date of account opening will be approved. We will charge your Card account for the total approved amount of all balance transfers. No transfer will be processed if: (1) any requested transfer is less than $100; (2) the total amount of all requested transfers exceeds the lesser of $7,500 or 75% of your credit limit; or (3) charging the requested transfers to your Card account would cause your total account balance to exceed your credit limit. We will not initiate any balance transfer until at least ten days after we have mailed or otherwise provided the Card Member Agreement to you. In some cases, it may take up to six weeks to complete a balance transfer. Please be sure to make all required payments on any account from which you are transferring a balance until the balance transfer is credited to that account. You authorize us to verify the balance of such accounts. You may not transfer balances from any account issued by American Express or any of its affiliates. Additional Card Members may not request or authorize balance transfers. Your balance transfer request may be declined if any of your American Express accounts are not in good standing.
Balance Transfer Fee
The vast majority of cards charge a balance transfer fee. The standard fee is 3% of the amount transferred, with a minimum fee of $5 to $10. That means you’ll pay $30 for every $1,000 transferred ($1,000 x 3% = $30). Transfer $10,000 in high interest debt and you’ll pay a fee of $300.
The three percent fee is a great deal when compared to interest rates on credit cards that can easily exceed 15% or 20%. Keep in mind that the fee doesn’t change based on the length of the 0% offer. Even longer offers typically charge the same 3% fee. So if you’re going to pay the fee, aim to get the longest 0% offer you can.
As noted above, no-fee balance transfer offers become available from time to time. You can see those offers here.
Timing of the Transfer
Several cards having timing limitations that are important to understand. To take advantage of some of these deals, you must initiate the transfer within a set period of time (typically 60 or 90 days after getting the card). Be sure to read the fine print here.
Transfers from One Issuer’s Card to Another
Credit card companies do not allow transfers between their own cards. You cannot transfer a balance, for example, from one Discover card to another Discover card. As a result, if you have a balance on a Capital One credit card, you’ll need to transfer it to a card issued by a credit card company other than Capital One.
Balance Transfers vs. 0% on Purchases
It’s important to distinguish between 0% on balance transfers and 0% on purchases. Many of the cards listed here offer both. With 0% on purchases, there is no transfer fee. Instead, the credit card issuer agrees not to charge interest on purchases for a set period of time. The length of the 0% offer is often the same as for balance transfers, but not always.
How Much Can a 0% Balance Transfer Card Save You?
This really is the key question. The answer depends on several factors:
- Your current interest rate
- How much debt you transfer
- The balance transfer fee
- Length of the 0% balance transfer offer
To give you a more concrete idea, however, let’s look at some numbers. Let’s assume we’re dealing with $10,000 in credit card debt at 18% interest. We’ll use simple interest just to make the calculations a bit easier.
Over a 21-month period, we’d pay approximately $3,100 in interest ($10,000 * 18%/12 * 21). It actually would be a bit lower as our balance would decline each month, but it’s roughly accurate. Now let’s compare $3,100 in interest with the fees and interest we’d pay with the three best balance transfer deals:
|0% for 15 Months|
No Transfer Fee
|0% for 18 Months|
3% Transfer Fee
|0% for 21 Months
3% Transfer Fee
|Interest After 0% Expires*||$630||$288||$0|
|Total 21-Month Cost||$630||$588||$300|
*We assume an 18% simple interest rate. We further assume that during the 0% introductory period, the balance is reduced by $200 each month.
Keep in mind that the above numbers use simple interest, so actual costs will vary slightly. In addition, the above numbers assume that the balance is not paid in full by the end of the 0% offer. If you plan to pay the balance in full before the 0% rate expires, the no-fee balance transfer will always come out on top.
Regardless of which approach you take, all of the above options result in significant savings.
The Dough Roller editorial team has been studying, writing about, and using balance transfer cards for more than a decade. I transferred a high-rate credit card balance to a 0% card for the first time in 2007. It was a great feeling not to pay interest every month.
Since then, the editorial team here has evaluated well over a hundred balance transfer cards. We’ve learned what to look for. We considered several factors in selecting the balance transfer credit cards to include in this guide:
- Credit Card Issuer: We’ve included at least one balance transfer card from each of the major issuers, so long as they met our other rating requirements listed below.
- Length of 0% Offer: The length of the 0% offer is a key factor in our rating. The minimum length to make our list is 12 months, but most offers run 15 to 21 months.
- Balance Transfer Fee: We’ve also considered any fees for transferring balances, and we rank highly those cards (just one at the moment) that do not charge a balance transfer fee.
- Annual Fee: We also looked at other fees associated with the cards, particularly the annual fee. We ranked higher those cards with no annual fee.
- Other Rewards: Finally, we considered other card benefits, including cash back rewards and sign-up bonuses.