You can use 0 balance transfers credit card as a potent weapon in your fight against debt. A credit card with a 0% APR can help you save money since all of your payments will go toward paying off the principal debt rather than some of them will be diverted to cover interest costs.
Most cards that allow balance transfers impose a balance transfer fee. Be sure to consider this charge, the amount of debt you wish to transfer, and the number of months you have to pay the balance off when determining which balance transfer card is the most perfect for you.
What Is A Balance Transfer Credit Card?
It is a form of credit card transaction which involves moving debt from one account to another. If done carefully, such a move can significantly reduce interest costs for people paying down high-interest debt.
For instance, debt that is transferred to a credit card that offers a 0% introductory APR on balance transfers may be able to be paid off without accruing interest.
However, there are some fees and restrictions associated with balance transfers. A balance transfer charge is typically required; it ranges from 3% to 5% of the amount being moved. Additionally, you might not be able to transfer your entire sum if the credit limit on your balance transfer card is low.
Since the purpose of a balance transfer is to reduce costs, you should pick a card that does just that. The best credit card for balance transfers has three large zeros:
- A balance transfer offer with a 0% introductory APR.
- No yearly charge.
- Fee-free balance transfer (or a way to avoid paying such a fee).
You might be able to pay off your debt with one of these cards without paying any interest or fees at all. However, since no-transfer-fee cards are now uncommon, you’ll probably only locate two of the three.
A card with no annual fee and a 0% introductory balance transfer offer is still quite beneficial. Interest costs quickly mount up and are frequently far more expensive than a one-time 3% to 5% fee.
How Balance Transfer Works?
After learning about the balance transfer cards lets have look on how the 0 balance transfers credit card work:
1. Use an offer on a card you already own or apply for a card with an introductory 0% APR on balance transfers. You typically need to have strong or excellent credit to be eligible for the top rates (typically, FICO scores of at least 690). Remember that same-issuer transfers are typically not permitted.
2. Start the transfer of the balance. You’ll need to supply details about the debt you want to transfer, including the issuer name, the debt’s amount, and the account information, whether you’re doing this over the phone or online.
3. The issuer will typically pay off your previous account directly once the balance transfer is approved, which could take two weeks or longer. In your new account, that previous balance as well as the balance transfer cost will be visible.
4. You will be in charge of paying the balance on that account on a monthly basis once it has been linked to the new card. And you might be able to save a lot of money if you pay it off during the introductory 0% APR period, for instance.
Best 0 Balance Transfer Cards
|Name of the card||Credit score||Annual fee|
|Wells Fargo Reflect card||Excellent, Good||N/A|
|Bank of America Customized Cash Rewards credit card||Good||N/A|
|U.S. Bank Visa Platinum Card||Excellent, Good||N/A|
|Citi Double Cash Card||Excellent, Good||N/A|
Closer Look To The Popular Cards
1. Wells Fargo Reflect Card
The Wells Fargo Reflect® Card is at the top of the list of 0 balance transfers credit card. This card is an easy decision if you want to pay less interest on your current debt. It has no annual cost, and brand-new cards enjoy a long introductory period during which they can make balance payments.
Just be careful to transfer the balance within the eligibility time frame to avoid paying a higher balance transfer fee.
Although this card doesn’t offer rewards, it does offer several money-saving features, like access to roadside dispatch and up to $600 in cell phone protection when you pay your monthly bill with the card.
2. Bank of America® Customized Cash Rewards credit card
The Bank of America® Customized Cash Rewards credit card is a good choice for someone who frequently spends money on regular purchases like groceries or gas, but who also wants the freedom to maximize their earnings if their main monthly expenses change over time.
This card’s secret weapon is the ability for Preferred Rewards programme participants to earn an extra 25% to 75% of bonus points on all purchases. For a 25% bump, $50,000, and a 75% bump, respectively, you’ll need $20,000 in total assets.
3. U.S. Bank Visa® Platinum Card
The U.S. Bank Visa® Platinum Card* is a great option if you’re searching for a lengthy introductory period to pay off a large purchase or consolidate existing debt. Its lengthy offer on both purchases and balance transfers may provide you with the breathing room you need.
The card doesn’t have much to offer save the lengthy introductory APR deal. This card is solely focused on the 0% duration and offers no extras like rewards or other bonuses.
4. Citi® Double Cash Card
The Citi® Double Cash Card offers large and straightforward cash-back returns on every purchase, offering 2% cash back on all purchases (1% when purchases are made and another 1% when they are paid off). No doubt this card deserves a place in the list of 0 balance transfers credit card.
The Citi Double Cash has staying power far beyond the conclusion of the promotional period, in contrast to similar cards with balance transfer offers.
Frequently Asked Question
1. How to transfer a credit card balance?
You can submit an application online or over the phone with the bank after selecting the card to which you want to transfer a balance.
You will have the choice to transfer your balance to the new card throughout the application procedure. A balance transfer fee will be automatically added to the total balance you will owe on the new card if the card to which you are moving your balance has one.
2. What is balance transfer APR?
Ans. When you transfer debt to a new card, the APR is how much interest you’ll be charged. Some credit cards have promotional 0% interest rates, while other cards could have a low ongoing interest rate.
3. Is there a limit to how much you can transfer?
Ans. Yes, but the issuing bank and your creditworthiness decide on the maximum. Chase limits balance transfers to $15,000, for instance.