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The best balance transfer cards of 2020:

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If you’ve gone over budget and find yourself carrying credit card debt, you don’t need to resign yourself to paying interest. In fact, you should avoid this if at all possible — the average credit card APR is 17%, so with a monthly payment of 10% (or $105), it would take 11 months to pay off $1,050 in debt. During that time, you would fork over $90 in interest.

Fortunately, there’s one type of credit card that can help you avoid paying interest on your debt if you use it the right way: a balance transfer credit card.

What is a balance transfer card?

Balance transfer cards let consumers with existing credit card debt move their outstanding balance over from another card to avoid interest fees. You’re able to avoid interest on a balance transfer card thanks to an intro 0% APR offer, which lasts anywhere from nine to 21 months.

After this introductory period is over, your APR will reset to the standard variable rate. So you need to pay off your credit card debt in full before the intro APR period ends in order to avoid interest charges.

What’s the catch? Some balance transfer credit cards charge an upfront balance transfer fee of 3% or 5% of your balance — or $300 to $500 for every $10,000 in high-interest debt you transfer.

If you don’t need to transfer a balance but you need to make a large purchase that you’ll need time to pay off, see Business Insider’s list of the best credit cards with intro APR offers.

The best balance transfer cards compared

Here are the best offers available today based on their introductory offers, fees, and perks.

*Citi Double Cash earns 2% cash back — 1% back when you make a purchase, and another 1% back when you pay your bill

**0% introductory APR applies to balance transfers requested within 60 days of account opening.

Longest intro APR with no late fees

Consumers with a lot of high-interest credit card debt could save more with a card that offers 0% for as long as possible. The Citi Simplicity® Card extends one of the best offers in this category.

There’s no annual fee, yet you get 0% APR on balance transfers for 21 months (transfers must be completed in the first four months) and 0% APR on purchases for 12 months. After that, your rate goes up to 14.74% – 24.74% based on your creditworthiness. Having a full 21 months with 0% APR could help you pay down a ton of debt, but keep in mind you’ll pay a 5% balance transfer fee (minimum of $5) for the privilege, and you need to make all transfers in the first four months.

Other perks this card offers include automatic account alerts, 24/7 customer service, and the ability to choose your payment due date.

Pros: No annual fee, score 0% APR on balance transfers for a full 21 months (then a variable APR of 14.74% – 24.74% applies), no late fees

Cons: 5% balance transfer fee, few cardholder perks

Long intro APR offer

The Citi Diamond Preferred card is similar to the Citi Simplicity® Card in that it also offers an introductory 0% APR on balance transfers for 21 months (then a variable rate of 13.74% to 23.74%, which is slightly lower than the variable rate on the Simplicity card. It also offers 0% APR on purchases for 12 months (then a variable rate of 13.74% to 23.74% applies).

Beyond slightly different interest rates when the introductory APR offers end, the biggest difference between these two cards is that the Citi Simplicity card doesn’t charge late fees, while a penalty APR of up to 29.99% applies if you pay late with the Citi Diamond Preferred.

Pros: No annual fee, 0% APR on balance transfers for 21 months (then a variable APR of 13.74% – 23.74% applies)

Cons: 5% balance transfer fee, doesn’t waive late fees

Best for easy cash back

With the Citi® Double Cash Card, you get 0% APR on balance transfers for 18 months from your date of first transfer when transfers are completed within four months from date of account opening, then there’s a variable rate of 13.99% to 23.99%. That’s a solid amount of time to pay off your debt, even if it falls a few months short of the Citi Simplicity® Card‘s intro period.

But what makes the Citi Double Cash Card a great pick is that it’s one of the best cash-back credit cards in general, so it’s worth using even after you’ve paid off your balance. You’ll earn 2% cash back on everything — 1% back when you make a purchase, and 1% back when you pay it off. You won’t earn cash back on balance transfers, but it’s a great card for earning money back on your everyday expenses. 

You do have to pay a fee for transferring a balance; it’s 3% of each balance transfer, with a minimum charge of $5.

Pros: Strong cash-back rate, no annual fee, long intro APR period

Cons: 3% balance transfer fee

Intro APR on both purchases and balance transfers

The U.S. Bank Visa Platinum Card is unique in the fact that it offers 0% APR on more than just balance transfers. Once you sign up, you’ll get the introductory rate of 0% on balance transfers and purchases for 20 months (followed by a 13.99% to 23.99% variable APR).

Getting 0% APR on balance transfers and purchases makes this card a solid option for anyone who has debt to transfer or a big purchase to make. If you wanted to buy new appliances or use credit to cover a minor kitchen remodel, for example, you could do so and repay your balance at 0% APR for the full 20 months.

Other benefits you’ll get with this card include cell phone protection, a free TransUnion credit score each month, and the ability to choose your payment due date. This card also comes with no annual fee, although there is a balance transfer fee of 3% or $5.

Pros: 0% APR good for both balance transfers and purchases, no annual fee, cell phone protection

Cons: 3% balance transfer fee

Earn cash back on rotating categories

Consumers who want to make a big purchase and pay it off slowly over time should consider the Discover it® Cash Back. It offers 0% intro APR on purchases and balance transfers for 14 months (then a variable APR of 11.99% to 22.99%), with a balance transfer fee of 3% (increasing to 5% after August 10). See card terms for up to date fees and rates.

Not only does the Discover it® Cash Back offer 5% cash back in categories that rotate each quarter and 1% back on all other purchases, but Discover will also double all the rewards you earn after the first year. There’s no annual fee, and you qualify for free Social Security number alerts, no foreign transaction fees, and no late fees on your first late payment (see terms for most up to date rates and fees).

Pros: Earn cash back for your purchases

Cons: Rewards can entice you to spend more

Best for earning travel points

If you’re working to pay down a large credit card balance, earning points or miles shouldn’t be your priority. The value of the rewards you earn will be dwarfed by any interest charges you incur. But if you’re able to pay off your balance during the 0% intro APR period, the Amex EveryDay card provides a nice opportunity to earn Amex Membership Rewards points that can be transferred to travel partners like Delta and Marriott.

The EveryDay card has no annual fee, and it has an intro offer of 0% APR on purchases and balance transfers for the first 15 months. There’s no fee for balance transfers, but just note that they must be completed in the first 60 days after account opening. After 15 months, the APR is a variable rate of 12.99% to 23.99%. 

The EveryDay card earns 2x points at US supermarkets on up to $6,000 per year (then 1x) and 1 point per dollar on everything else. If you make at least 20 purchases in a billing period, you’ll get a 20% points bonus, too.

Pros: Earns Amex points, no annual fee, solid intro APR offer with no fee for balance transfers

Cons: Rewards could entice you to spend more

How we chose the best balance transfer cards

Business Insider selected the best balance transfer cards by looking at all the credit cards with balance transfer offers that are currently available to new applicants. This is important to note, because one of the best balance transfer cards, the Chase Slate, is currently closed to new applicants.

From there, we narrowed our list down to balance transfer credit cards offering 0% introductory offers. We arrived at our final picks by evaluating the terms of each introductory APR offer and other card benefits. We prioritized cards that don’t charge balance transfer fees as well as cards with the longest introductory 0% APR periods on balance transfers. We also factored in other card benefits, such as cash back or travel rewards, annual fee, and waived late fees.

Frequently asked questions

How do balance transfer cards work?

Balance transfer cards can save you money by securing you a lower interest rate on your existing credit card debt. When you apply and are approved for a balance transfer credit card, you move over debt from another card, and you generally have an introductory 0% APR period before you have to start paying interest on that debt. Ideally, you’ll pay off your debt before the introductory period ends — otherwise, you’ll have to pay interest on your remaining balance.

Is a balance transfer card right for me?

A balance transfer could be right for you if you currently have credit card debt, and you have a plan to pay it off. By using a balance transfer credit card, you’ll get a bit of breathing room with the introductory 0% APR period. This allows you to pay off your debt without adding interest.

If you don’t think you’ll be able to pay off your debt in full by the time the introductory APR offer expires, a balance transfer credit card may not be worth it. You’ll end up having to pay interest on your remaining balance.

How do I perform a balance transfer?

The first step in completing a balance transfer is applying for — and getting approved for — a balance transfer credit card. Once you have a card with an introductory APR offer on balance transfers, to transfer your credit card balance, you’ll need to request the transfer with the bank that issues your new balance transfer credit card. You can generally initiate this process either online or by calling the number on the back of your card.

How long does a balance transfer take?

A balance transfer generally takes five to seven days, but the actual time can vary by issuer. Your bank may ask you to allow for up to 21 days for a balance transfer to go through, but usually the transfer should be completed sooner. Experian has a handy chart listing the average balance transfer timeframes by bank.

What credit score do I need for a balance transfer card?

If you have bad credit — which is defined as a credit score below 669 — you probably won’t be approved for a balance transfer card. A bank may be less inclined to approve you for a balance transfer card if your credit score and credit report indicate that you haven’t been able to consistently pay off debts in the past. 

Source: https://www.businessinsider.com/best-balance-transfer-credit-cards