Credit cards for balance transfer are an excellent option to save money as you pay off your debt. These kinds of cards have a low initial APR. The best ones for balance transfers begin with an intro of 0 APR of 0. Make sure to pay off your balance before the period of intro ends and you'll cut out interest-related fees completely. In our selection of the most effective balance transfer credit cards, you'll find the top options that provide the longest intro periods as well as the lowest fees.
Credit cards with the best balance transfer
- Long 0% intro APR: Wells Fargo Reflect(sm) Card
- Long 0% intro APR: Citi(r) Diamond Preferred(r) Card
- Cashback and balance transfer: Discover it(r) Balance Transfer
- Cashback and balance transfers: Citi(r) Double Cash Card - 18 months BT offer
- Long 0% intro APR: Citi Simplicity(r) Card
- Purchases and balance transfers: U.S. Bank Visa(r) Platinum Card
- Purchases and balance transfers: BankAmericard(r) credit card
Consumers who are smart use balance transfer credit cards to consolidate or refinance existing credit card balances. If used correctly the best balance-transfer credit cards could reduce the cost of interest by hundreds. For the best outcomes from these credit cards, it is important to know the process of balance transfers.
What is a credit card that allows balance transfers?
Balance credit cards with transfer capabilities are ones that allow balance transfers, an option not available on every credit card. A balance transfer involves moving an account's balance to another. When you've completed the balance transfer, your original balance is paid and you can make payments to the account that was the recipient of the transfer.
You're basically using this card for balance transfers to pay off a credit cards. The most effective balance transfer cards have the option of 0% introductory APR which is comparable to a zero-introductory APR credit cards for an eligible balance transfer. This means that you will not be charged interest on your credit card when the account balance is that you transferred during the intro period, which could be between a few months up to 20 cycles of billing. After the intro APR has ended the issuer of the card will begin charging your card's regular variable rate on the balance remaining. The speedy payment of your balance can help you avoid an interest rate at the time the intro APR closes.
The kind of debt that you are able to transfer is contingent on the balance of your transfer card. Some card issuers only allow you to transfer credit card balances other cards allow the transfer of all types of debt. The majority of consumers use balance transfer cards to transfer the debt incurred by credit cards.
The total value of the transfer and any fees for the transfer must not exceed the credit limit. If it's not the case, the balance transfer is refused. It's not possible to transfer balances between two cards issued by the same card issuer either. Transferring a balance from a Chase credit card a Citi credit card would be accep,table, however, transfers between two Chase credit cards aren't allowed.
How do I calculate a balance transfer cost?
The Balance transfer charge is a charge to transfer a balance on an additional credit card. This fee for balance transfers is billed from the account that handles the transfer (the card that is charged this balance). It's usually between three and five percent.
Balance transfer fees are calculated in the form of a percentage of the amount that you transfer and usually is added to your overall balance on your credit card. For instance when you transfer $1,000 to a credit card that has a balance transfer fee of 3% fee and you've assessed a cost for transferring a balance. The new balance on your balance transfer credit card would be 1,030.
How do I do an account transfer?
Here are some steps to follow when it comes to balance transfers:
- Look for one of the top Balance transfer credit cards. Try to find one that has a long to start the process so you can repay your debt within the timeframe.
- Then, open your card, and then transfer your account balance. You'll need the credit card number for the card that has the balance and the amount you wish to transfer. The majority of card issuers allow you to move balances on the internet. Therefore, you'll sign in to the account associated with the balance transfer card and search for the option to transfer balances. You can also call your credit card provider to complete the balance transfer via phone.
- Pay your bills. You're still required to pay with that card prior to the balance transfer process being completed. It will be clear when the balance of your original card is changed. From now, you'll be able to make payments using your balance transfer credit card.
How do you do an account transfer using Chase?
Balance transfers made with Chase can be made by accessing the Chase account and then doing the following:
- Click "Transfer to transfer balance. " You will find this option at a variety of places. When you go to the Account Summary page, it'll be beneath your balance transfer credit card's credit. On the page of the credit card it will be accessible under the "Things you can do" drop-down menu.
- Choose an offer to transfer balances. Chase will list all balance transfer options available on the card you select. Select the offer you're looking for, and after that, click "Next."
- Enter the necessary information. You'll need to provide the full number of the card for the credit card that has the balance and total amount of the balance transfer.
- Transfer the balance.
How do you do an account transfer using Discover
Balance transfers made with Discover are possible by logging into the Online Discover accounts and then following the following steps
- Go to "Balance Transfers. " There's an "Manage" option on right at the bottom of the account's page under which there's"Balance Transfers" under the "Balance Transfers" link.
- Choose the balance transfer offer. Depending on which Discover credit cards you hold it is possible that you will have various balance transfer options that are available to you.
- Fill in this form. Discover will ask for the balance transfer amount as well as the number of your credit card of the card that holds the balance.
- Send the balance transfer.
How do you do an account transfer to Wells Fargo
Balance transfer with Wells Fargo are available through your online Wells Fargo account when you follow these steps:
- Select "Request the Balance Transfer. " To locate this option, put the mouse over "Accounts" and then look for it under"Manage Card" heading "Manage Credit Cards" heading.
- Choose an offer for balance transfer. The offers available will be contingent on which Wells Fargo credit cards you are using.
- Complete the form for transferring balances. Wells Fargo asks for the name of the creditor as well as the credit card number and the amount of the transfer.
- Send the balance transfer.
How can you evaluate balance transfer credit card accounts
The process of comparing credit card offers is focused on saving money. Selecting the top Balance transfer credit cards could help you save a lot of money.
Below are some steps you can take to evaluate balance transfer deals:
- Verify the length of the deals. Most of the most lucrative balance transfer deals come with zero percent intro APRs, and you can judge them on the length of time their intro deals last. If you require as much time as you can to pay off your debt select the card that has the longest intro 0% APR.
- Check out which cards come with fees for balance transfers. Free balance transfer credit cards can help you save money, however they might not have the longest intro 0% deals. It is important to determine if you'll pay less for an extended intro offer or by not having to pay fees for balance transfers. Utilize the calculation of balance transfers to find out the amount you can reduce your expenses by using a balance transfer.
- Utilize other features to break the tie. You may find that many Balance transfer credit cards aren't even. If that is the scenario, you should pick one based on other benefits the cards have like cash reward or welcome bonus. For instance the Citi(r) Double Cash Card 18 month BT deal is among the top Balance transfer credit cards, and one of the top cash reward credit cards.
Beware of other costs, such as the annual fee or late fee, is sensible. It's the Citi Simplicity(r) Card doesn't have a late charge however, you must avoid making payments that are late as it could cost you the 0% intro APR rate. The cards listed that are listed here have an annual cost. Avoid cards that have an annual feebecause they can reduce the savings you earn from the initial APR.
For more information on how to choose the right account for balance transfers, take a look at the video below.
Do balance transfers affect your score on credit?
Balance transfer cards can be detrimental but also improve your credit. When you utilize credit cards for balance transfers, it impacts three elements that are used to determine the credit score:
- A new line of credit (10 percent of FICO(r) Score): The credit card application can trigger an inquiry into your credit which can negatively impact that new type of credit. This isn't a major problem, however, since the majority of people have only seen their FICO(r) scores drop by 5 points or less following the hard inquiry.
- Length of the history of your credit accounts (15 percent (5% of FICO(r) score): A new credit card can cause the average length of your credit history to shrink which can affect your credit score.
- Utilization of credit (30 percent of FICO(r) score): Your new balance credit limit on your transfer card will boost your credit limit and cause the credit limit to fall. This is great for the credit rating. However, your credit utilization on every card is crucial. If you experience high credit utilization for the balance transfer card, this can have an adverse effect.
While your credit score might be affected by an account balance transfer however, it is likely to increase when you pay off the credit card credit card debt. Since building an excellent payment history is among the most effective methods to improve credit. A credit card that allows balance transfers lets you to do this more quickly while also saving interest.
Is a balance transfer credit card the right choice for you?
It's crucial to take into consideration the advantages and disadvantages of making a balance transfer using credit card that allows balance transfers. While the most effective Balance transfer credit card could save you hundreds of dollars in interest, they could be costly.
A credit card for balance transfers is an excellent option when:
- You'd like an interest rate that is lower. The biggest perk of the 0% intro Balance transfer cards with APR is the much money they could save you. If you're in credit card debt that you'll have to pay off over a period of time, say six months or more the balance transfer could result in huge savings.
- You're trying to consolidate the debt. When you have numerous debts that are spread across credit cards, this may be difficult to control. The balance transfer credit card can help you to consolidate your debt so that you only have to pay one payment each month.
- You're trying to improve your score on credit. Credit card debt usually leads to an elevated percentage of credit utilization, which is a factor that can have a major influence on credit scores. Since the balance transfer card will add to your credit limit and lowers the credit utilization. This balance transfer can reduce your expenses and boost your credit score.
A credit card for balance transfers is not a wise choice If:
- There is no strategy to settle all of your outstanding credit card. A balance transfer is only beneficial in the event that you maximize the chance to pay off as much debt as you can prior to the time when the intro APR period expires, and do not overspend since your debt doesn't charge the borrower any additional interest. If you don't, you may be at the end of this intro phase with same amount of debt , or greater.
- You have a credit score that is not as good. To qualify for the most prestigious balance transfer credit cards you'll generally need credit that's good. In the event that your credit score is low or average it's a great idea to work on improving your credit. So you don't have to settle for a poor balance transfer card.
- It is possible to pay off credit card debt in several months. When you're this close to the debt being paid off typically, it's best to keep your credit card of choice. The cost of transferring balances can wipe out any money you have saved on interest. Even if you have a balance transfer credit card that has no fees, the credit card application could take a while and result in an eminent dip on your score.
Alternatives to balance transfer
If you're not certain that an account with a balance transfer credit is the right choice for you, you can consider the following alternatives:
Personal loans to consolidate debt
If you pay off your debts using personal loans you can have a set period of time, a payment amount as well as the interest rate. The consolidation of debt is an excellent method to ensure that you are able to pay your monthly installments and have your debt paid completely. Although the debt consolidation loans don't come with zero-introductory APRs however, there are personal loans that offer very low rates of interest. Additionally, you won't have to be concerned about the APR rising as that of balance transfer cards at the conclusion of the initial period.
Home line of credit
Because the homeowner equity loan or Home Equity Line of Credit (HELOC) makes use of the home's equity as collateral, they are able to have some of the most affordable interest rates available. They are both reasonable options to pay off debt, however, you'll require an equity investment in your home in order to be eligible. In addition, the fact that it is your house that serves as your collateral will increase the risk.
Non-profit credit counseling organizations
If you partner through a credit counseling firm It can offer you suggestions on how you can manage your finances and pay off your debts. A credit counseling company will also be able to negotiate an arrangement for debt management in conjunction with the creditors you owe. This can be particularly beneficial if your credit score isn't as good, as it's difficult to find accounts that allow balance transfers that are suitable for people with bad credit.
Debt negotiation with your credit card
Credit card companies are usually willing to bargain your credit card balance with you in the event that you're struggling to pay the monthly payment. Some may even offer low-interest credit cards that you could look into. Some provide hardship plans to lower your credit card's interest rate and fees as well as the minimum amount to pay. If your credit card company doesn't offer this offer a hardship plan, you might still be able to negotiate some of these items.