August 2023’s Top Balance Transfer Credit Cards

August 2023's Top Balance Transfer Credit Cards

Rates checked as of August 1, 2023.

Are you burdened with high-interest credit card debt? Interest rates can be a real pain, with some cards charging nearly 30%. It’s time to take control of your finances and consider refinancing your debt with a balance transfer credit card.

While cash back and rewards credit cards may seem tempting, it’s crucial to focus on paying off your debt first. A balance transfer card allows you to take advantage of a 0% APR interest rate for up to 21 months, saving you hundreds or even thousands of dollars in interest payments. Even with a balance transfer fee of 3% to 5% of the amount transferred, the savings can still outweigh the cost.

To make the most of a balance transfer, it’s essential to pay off the debt before the 0% window expires. Otherwise, you’ll be hit with the higher APR on the remaining balance. To help you find the best balance transfer credit cards, we’ve rounded up our top picks, all offering extended 0% introductory windows and reasonable balance-transfer fees of 3%.

It’s important to note that the interest rates, fees, rewards, and terms mentioned in this article are subject to change. Always check the current terms and conditions with the issuer when applying for a credit card.

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Let’s take a closer look at some of the best balance transfer credit cards available:

0% APR for 21 Months

Card 1 – Interest Rate: 0% for 21 months on purchases and balance transfers, with a standard variable rate afterward. – Balance Transfer Fee: 3% of the amount transferred ($10 minimum) – Annual Fee: None – Penalty APR: None – Late Payment Fee: Up to $40 – Perks: Free FICO score

Card 2 – Interest Rate: 0% APR for 21 months on purchases and qualifying balance transfers. – Balance Transfer Fee: 3% ($5 minimum); after 120 days, it is 5% with a $5 minimum. – Annual Fee: None – Penalty APR: You may lose the 0% interest rate if you make a late payment during the introductory period. – Late Payment Fee: Up to $40 – Perks: Up to $600 per claim of protection for your cell phone against damage or theft if you pay your monthly wireless bill with the card.

18 Months 0% APR

Card 3 – Interest Rate: 0% intro APR only on Balance Transfers for 18 months, with a variable APR afterward. – Balance Transfer Fee: 3% ($5 minimum) within the first 4 months of account opening, then 5% ($5 minimum). – Annual Fee: None – Penalty APR: Up to 29.99% if you pay your bill late. – Late Payment Fee: Up to $41 – Perks: 2% cash back on every purchase.

Card 4 – Interest Rate: 0% for 18 billing cycles on purchases and balance transfers, with a variable APR afterward. – Balance Transfer Fee: 3% ($5 minimum) – Annual Fee: None – Penalty APR: None – Late Payment Fee: Up to $41 – Perks: Up to $600 reimbursement if your cell phone is stolen or damaged and you use the card to pay your wireless bill.

How Do Balance Transfers Work?

Balance transfers allow you to move debt from one credit card account to another, usually with an introductory 0% APR promotion. These promotions typically last between 12 and 21 months, providing a window of opportunity to pay down the debt interest-free. However, balance transfer fees of 3% to 5% may apply.

It’s important to note that balance transfers are normally not allowed between cards issued by the same bank. Additionally, unless your card also offers a 0% APR promotion on purchases, interest may be charged immediately on new purchases.

How to Perform a Balance Transfer

Performing a balance transfer can be done through different methods, depending on your situation:

1. When you apply for a new credit card: You can request a balance transfer during the application process by providing the account number and transfer amount for each debt.

2. Through your online account: Some credit card issuers offer balance transfer promotions through existing customer accounts. Log in to your account, select the card you want to use, and search for current promotions.

3. Use a balance transfer check: Issuers occasionally send out balance transfer checks by mail, which can be used to pay off balances or deposited into your checking account for online payment.

4. Call your card issuer: If you prefer a personal touch, call the number on the back of your credit card or the issuer’s customer service line to request a transfer over the phone.

How Long Does a Balance Transfer Take?

The time it takes to process a balance transfer varies among credit card companies. It can range from a few days to several weeks. Here is a general timeline for popular credit card issuers:

• American Express: 5-7 days, up to 6 weeks in certain circumstances
• Bank of America: 2-14 days
• Barclays: Up to 4 weeks
• Capital One: 3-14 days
• Chase: Up to 21 days
• Discover: 4 days, 14 days for newly opened cards
• U.S. Bank: Up to 14 days
• Wells Fargo: Up to 14 days

Pros and Cons of a Balance Transfer

While a balance transfer can provide significant benefits, it’s important to weigh the pros and cons before pursuing this option.

Pros: – Save hundreds on interest payments – Consolidate multiple balances into one – Enjoy additional card features, such as rewards and bonuses

Cons: – No guarantees of approval or sufficient credit limit – Potential temporary impact on credit score – Costs associated with balance transfer fees – Possibility of paying interest after the introductory period ends

Is a Balance Transfer Right for Me?

A balance transfer may be a suitable option in certain situations:

• You have significant high-interest credit card debt.
• You expect to pay off the debt within a year or two.
• Your credit score is good, allowing approval for a new card.
• You can control your spending and avoid acquiring more debt.

On the other hand, a balance transfer may not be the best choice if:

• You have minimal credit card debt.
• You can quickly pay off the debt in a few months.
• Your credit score is less than stellar.
• You do not plan to pay off most of the debt during the promotional period.

Remember, a balance transfer doesn’t address the underlying causes of your debt. Building an emergency fund and practicing responsible spending habits are essential steps towards long-term financial stability.

Other Best Buy Credit Cards

If you’re interested in exploring more credit card options, check out our other guides on the best rewards, cash back, student, travel rewards, business, and 0% APR credit cards.

Please note that the information provided in this article is subject to change. Always verify the current terms and conditions with the card issuer before applying.

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