Best Balance Transfers Credit Cards

5 Cards

HSBC Gold Mastercard® credit card

Great card for financing a large purchase, but no rewards. Read Full Review →

Chase Freedom Unlimited®

Rewards are very simple: 1.5% cash on purchases. I like the simplicity. Read Full Review →

Read reviews about the best balance transfer cards - Updated January 2023

HSBC Gold Mastercard® credit card

(1 Rating or Review)

Lowest Credit Score

720

High Credit Score

850

Pricing: Intro Purchase APR 0.00%; Intro Purchase APR Period 18 months; Regular Purchase APR Variable APR of 14.49% - 24.49% will apply after the Introductory Period

Fees: Annual Fee $0; Foreign Transaction Fee $0

Chase Freedom Unlimited®

(1 Rating or Review)

Lowest Credit Score

720

High Credit Score

850

Pricing: Intro Purchase APR 0% Intro APR on Purchases; Intro Purchase APR Period null; Regular Purchase APR 20.49% - 29.24% Variable

Fees: Annual Fee $0; Foreign Transaction Fee 3% of the amount of each transaction in U.S. dollars.

TRIO® Credit Card from Fifth Third Bank

(0 Ratings or Reviews)

Lowest Credit Score

720

High Credit Score

850

Pricing: Intro Purchase APR See Terms; Intro Purchase APR Period See Terms; Regular Purchase APR 15.49% - 24.49% Variable

Fees: Annual Fee See Terms; Foreign Transaction Fee See Terms

Truly Simple® Credit Card from Fifth Third Bank

(0 Ratings or Reviews)

Lowest Credit Score

720

High Credit Score

850

Pricing: Intro Purchase APR 0%; Intro Purchase APR Period 15 billing cycles; Regular Purchase APR 13.49%-24.49% Variable

Fees: Annual Fee See Terms; Foreign Transaction Fee 3% of each transaction in U.S. dollars.

HSBC Cash Rewards Mastercard® credit card

(0 Ratings or Reviews)

Lowest Credit Score

690

High Credit Score

850

Pricing: Intro Purchase APR 0.00%; Intro Purchase APR Period 12 months; Regular Purchase APR Variable APR of 14.49% - 24.49% will apply after the Introductory Period

Fees: Annual Fee $0; Foreign Transaction Fee $0

There are many reasons you may consider a credit card balance transfer. Perhaps you’ve just gotten a new card product which offers an introductory APR for the first so-many months. In this instance, a balance transfer could save you a lot of money in interest and knock extra time off of your debt-payoff journey.

Or maybe you need to lower the utilization on a particular account. In that case, transferring all (or part) of the balance to another card could improve your creditworthiness, without requiring you to pay anything extra.

So, what exactly is a balance transfer, and how can you utilize one in your own finances?

What Is a Balance Transfer?

A balance transfer is a feature offered by many credit cards today, which will allow you to move debts owed from one account to another.

This transfer occurs when you take the balance from one credit card account and a shift it to another account that has enough available credit to allow for the transfer. This can be done between products offered by the same issuer – such as two unique credit cards through the same bank – as well as between different companies.

You can also transfer the balance from a non-credit account onto a credit card. For instance, if you have an outstanding student or personal loan balance, you could clear out that debt by transferring the balance to a credit card. As long as you have enough available credit to account for the shifted debt, you shouldn’t have trouble moving balances around.

When you transfer a balance, your debt will be cleared with the original company. If it was an installment loan, like an auto or personal loan, the account will close following the transfer. If the original debt was on a credit card, you can choose to keep the account open moving forward or close it once you’ve cleared out your balance.

Following the balance transfer, you will direct future payments to the issuer now holding the debt. You will be subject to their rules, interest rates, billing schedules, and procedures.

So, why would you want to get a balance transfer? Well, there are many reasons to consider one, but an introductory APR offer is probably the most enticing.

Transfer to Eliminate Interest Charges

When you sign up for a new credit card, you will usually be offered any number of incentives. These range from bonus points or miles, waived annual fees, and even the temptation of 0% interest for a determined period of time.

With some credit cards, you can enjoy shopping for new purchases without having to pay a penny in interest on any balances carried from month-to-month. But with some credit cards, you’ll get this same benefit on your balance transfers, too.

The introductory balance transfer offer means that you can switch over a debt from a credit card with a high interest rate. In doing so, you will eliminate the additional cost you were paying each month in interest, allowing you to both pay off the debt with less money and in less time. If you are trying to get out of debt, an introductory balance transfer offer can be a very helpful (and financially-wise!) move.

These balance transfer offers are typically available to new cardholders who choose to shift balances in the first few months of card ownership. You’ll need to read the terms and conditions of the card you choose, but typically you will need to transfer your balance(s) over in the first 60 or 90 days in order to qualify for a 0% offer. If you transfer after the introductory transfer period has ended, your debt will be subject to the normal balance transfer interest rate for the card.

Keep in mind that this introductory balance transfer period is different from the time allotted for the actual transfer. While the card may offer you 18 months of 0% APR on balance transfers, you might only have the first 60 days in which to complete those transfer requests. That is why it’s important to always read the fine print.

Transfer to Decrease Interest Charges

Even if you don’t sign up for a card that offers a 0% APR on balance transfers for an introductory period, there are still valuable reasons that you would want to take advantage of the feature. Plus, most credit card accounts will allow you to transfer balances at any time, even if a promotional offer is not given or if you’re not a new customer.

Balance transfers are a great option if you have a debt elsewhere that is incurring high interest charges. This might be a private student loan with a variable interest rate, or maybe another credit card account. If you’ve ever been late on a revolving account payment, you may be paying a penalty interest rate – these can often be at or above 30%, which will dig your debt hole even deeper each month.

A high interest rate is also common with many retail credit cards. While in-store accounts often give shoppers access to discounts, coupons, or even special sales, they frequently have interest rates ranging from 25-30%, which is well-above industry average. If you are carrying a balance on your favorite store’s credit card, it may be worth considering a balance transfer to your everyday credit card. This has the potential to drop your interest rate on the debt by tens of percentage points… a significant amount over the life of the payoff, if you plan to carry the balance from month-to-month.

Take a look at the credit cards you have and their balance transfer interest rates. Even if you don’t have a zero percent interest period, the rate offered may still be lower than what you’re paying on another account. In that case, it’s well worth the switch. Also, some credit card companies will occasionally give a lower APR on balance transfers to existing cardholders, so be on the lookout for these types of offers.

Transfer to Balance Out Credit Utilizations

Your credit utilization – or the amount of debt you’re carrying around compared to the total credit limit you’ve been given – makes up a fair amount of your credit score. In fact, this one calculation can often be the reason for credit application denials, even if you have an otherwise-great score.

Potential creditors will evaluate your overall credit utilization, looking at how much debt you’re carrying on revolving lines of credit compared to the total limit on the account. Beyond that, though, they will also make note of individual accounts that have higher utilizations. Even if you are only using a fraction of your total available credit, a single maxed out credit card can have a significant impact. In fact, it can decrease both your credit score and your chances of approval for certain products. This is where a balance transfer comes into play.

If you have credit cards that are unused or without carried balances, these might be a great place to conduct a balance transfer. This is especially true if you have maxed out another credit card in your wallet.

A single credit card with a high utilization can be the cause of many credit-related woes. Shifting all, or some, of its balance to another credit card account can help you spread the debt around a bit. Even if you aren’t saving money on interest charges, the simple act of moving the balance and decreasing your individual utilizations will have an immediate, and positive, impact on your creditworthiness.

Transfer to Simplify Your Debt

If you have balances with any number of revolving or installment loan accounts, a balance transfer is a great option. Not only can it help you simplify your finances, but you might also save some money in the long run.

When carrying multiple credit card balances, you are constantly required to keep track of statements, payment due dates, and changing terms or interest rates. By utilizing a balance transfer, you can consolidate your debt in one place. This means that you only need to pay attention to one statement, one due date, and one interest rate.

You decrease the possibility of late payments, simply because you only have to track one due date each month. You’ll also know exactly how much you owe at any given time, allowing you to better manage your debt.

Fees Involved

Balance transfers are wonderful features offered by most credit card companies, but they aren’t typically free. You’ll likely pay a fee to take advantage of this money-saving, debt-simplifying service.

Most creditors will charge a fee between 3-6% or $5-10, whichever is higher. This can vary from issuer to issuer, but those are the charges most often seen. When you’re talking about a balance transfer of a few thousand dollars, this fee can add up. However, if you are lowering your interest rate – or even eliminating it entirely, for a period of time – you’re saving much more than you’ll be spending in fees.

Just be sure to do the math beforehand. That way, you’ll know how much money you’re saving after the added expense of the transfer is factored in.

Things to Keep in Mind

While balance transfers are excellent features to consider if you’re carrying around any debt, there are a few things to note before signing up.

First off, it’s incredibly important to pay attention to the terms of your balance transfer. This is especially true if you are taking advantage of an introductory offer. While it’s incredibly beneficial to pay zero percent interest for a year or so, you need to know what’s in store for you once that period ends.

After your introductory 12, 15, or even 18 months is up (depending on the issuer and the specific offer), any remaining debt from your balance transfer will begin incurring interest at the normal APR. This is typically around 14-24%, though it truly varies by issuer and even your creditworthiness. If you don’t pay off the balance transfer in full before that period ends, you will wind up paying a substantial interest rate on the amount still owed.

Unless you’re sure that you can make the monthly payments required to clear out your transferred debt in time, you may want to consider consolidating your debt with a personal loan. These won’t come with the benefit of a 0% interest period, but you also don’t run the risk of paying 20% (or more) on the money still owed.

If you want to avoid this situation altogether, simply calculate the minimum payment you’ll need to make each month and set up an auto-pay. That way, you can take advantage of introductory interest rate offers while also avoiding the higher interest rate that inevitably follows.

Lastly, you won’t earn any rewards points on your balance transfers. Even if you have an excellent credit card that offers cash back on every dollar spent, this still won’t apply to any debt that you shift over to the account.

Should You Transfer Your Balance(s)?

If you’re considering a balance transfer, be sure to shop around for the best options.

There are usually a number of credit card products offering zero percent interest for a year or more on new balance transfers. This can not only give you an opportunity to pay off other balances for less money, but will also help you get out of debt faster in the end.

If you can’t find the right 0% APR offer, there are also lenders that will offer no-fee balance transfers. These are still great options, especially if you’re reducing your interest rate. And even if a no-fee or no-interest offer can’t be found for you, a balance transfer still has the potential to lower your interest rate(s), simplify your finances, and even improve your credit score.

In the end, be sure to read all the fine print and pay attention to the terms for which you’re signing up. Know your interest rate – especially if it’s a limited time offer – and plan your payments accordingly. Pay off your balance before your introductory period is up, and you’ll be able to truly maximize the power behind the credit card balance transfer.

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