High-interest credit card debt weighing you down? Balance transfer cards offer a powerful solution with 0% intro APR periods lasting up to 24 months. These cards can help you consolidate debt, save hundreds in interest charges, and create a clear path to becoming debt-free.
Balance transfer credit cards work by allowing you to move existing debt from high-interest cards to a new card with a promotional 0% APR period.
During this time, every payment goes directly toward your principal balance instead of interest charges. This strategy can save you significant money and help you pay off debt faster.
What Makes a Great Balance Transfer Card
The best balance transfer cards combine several key features to maximize your savings potential.
Length of 0% APR Period
The most important factor is how long you’ll have to pay down your debt interest-free. Today’s top cards offer promotional periods ranging from 12 to 24 months.
The longer the period, the more time you have to tackle your debt without accumulating additional interest charges.
Balance Transfer Fees
Most cards charge a fee for transferring balances, typically 3% to 5% of the amount transferred. Some cards offer lower introductory transfer fees for a limited time, which can reduce your upfront costs significantly.
Credit Limit and Transfer Limits
Your new card’s credit limit determines how much debt you can transfer. Card issuers may also impose specific transfer limits or cap transfers at a percentage of your credit limit. These restrictions affect how much of your existing debt you can consolidate.
Post-Promotional APR
After the 0% period ends, your card’s regular APR kicks in. Cards with lower ongoing rates provide better protection if you haven’t paid off your entire balance by the end of the promotional period.
Top Balance Transfer Cards by Promotional Period Length
24-Month 0% APR: U.S. Bank Shield Visa Card
The U.S. Bank Shield Visa Card currently offers the longest promotional period available. With 24 months of 0% APR on balance transfers, you have two full years to pay down your debt without interest charges.
The card also includes cell phone protection and an annual statement credit after making purchases for 11 consecutive months.
Key Details:
- 0% intro APR for 24 billing cycles on balance transfers
- Balance transfer fee: 5% of each transfer ($5 minimum)
- No annual fee
- Must transfer balances within 60 days of account opening
21-Month 0% APR Options
Three cards currently offer 21-month promotional periods, each with unique benefits:
- Citi Simplicity Card stands out for its straightforward approach. With no rewards program to complicate things, this card focuses entirely on debt payoff. The introductory balance transfer fee of 3% (for transfers completed within four months) is lower than many competitors.
- Wells Fargo Reflect Card matches the 21-month period and includes cell phone insurance coverage. This card requires balance transfers within 120 days of account opening to qualify for the promotional rate.
- Citi Diamond Preferred Card offers the same 21-month period with access to Citi Entertainment benefits and free FICO score monitoring.
18-Month 0% APR Cards
Several excellent options provide 18 months of interest-free debt payoff:
- Citi Double Cash Card uniquely combines a solid balance transfer offer with ongoing rewards. You’ll earn 2% cash back on purchases (1% when you buy, 1% when you pay), making this card valuable long after you’ve paid off your transferred debt.
- Chase Slate Edge offers additional perks like automatic credit limit increase reviews and potential APR reductions for responsible use.
- BankAmericard Credit Card provides a straightforward 18-month offer with reasonable fees and no annual fee.
15-Month 0% APR Cards
These cards offer shorter promotional periods but often include attractive rewards programs:
- Chase Freedom Unlimited earns 1.5% cash back on all purchases, plus higher rates on travel, dining, and drugstore purchases. The $200 welcome bonus and ongoing rewards make this card valuable beyond debt payoff.
- Blue Cash Everyday Card from American Express provides strong rewards on groceries, gas, and online purchases, along with statement credits for streaming services.
- Capital One Quicksilver offers 1.5% cash back on everything with no foreign transaction fees, making it useful for international travelers.
How to Choose the Right Balance Transfer Card
Calculate Your Potential Savings
Before applying, determine how much money you could save. Consider your current credit card balances, interest rates, and monthly payment capacity. Cards with longer promotional periods typically offer greater savings potential, even if they have higher transfer fees.
For example, if you have $5,000 in credit card debt at 22% APR and make $200 monthly payments, you’d pay about $1,400 in interest over 30 months.
Transferring to a card with a 21-month 0% APR period and 5% transfer fee would cost $250 upfront but save you over $1,100 in interest charges.
Consider Your Credit Score
Balance transfer cards typically require good to excellent credit scores (670 or higher). If your credit has improved since you first accumulated debt, you’re more likely to qualify for the best offers. Check your credit score before applying to understand your approval odds.
Plan Your Payoff Strategy
Success with balance transfer cards requires discipline and planning. Calculate how much you need to pay monthly to eliminate your debt before the promotional period ends. Set up automatic payments to ensure you never miss due dates, which could cause you to lose the promotional rate.
Factor in All Costs
Beyond transfer fees, consider the card’s regular APR, annual fee (if any), and other charges. Some cards waive annual fees for the first year, while others have no annual fee permanently.
Common Balance Transfer Mistakes to Avoid
Continuing to Use Old Cards
After transferring balances, avoid the temptation to use your old cards for new purchases. This strategy only works if you focus on paying down the transferred debt rather than accumulating new balances.
Missing the Transfer Deadline
Most promotional offers require you to complete balance transfers within 60 to 120 days of account opening. Missing this deadline means you’ll pay the card’s regular APR instead of the promotional rate.
Only Making Minimum Payments
The promotional period gives you a window to pay down debt aggressively. Making only minimum payments may leave you with a substantial balance when the regular APR kicks in.
Ignoring the End Date
Mark your calendar with the promotional period end date. If you can’t pay off the entire balance by then, consider your options, such as making a large payment or looking for another promotional offer.
Alternatives to Balance Transfer Cards
Debt Consolidation Loans
Personal loans for debt consolidation can make sense if you can qualify for a lower interest rate than your current cards. These loans typically have fixed rates and set repayment terms, providing predictable monthly payments.
Home Equity Options
Homeowners might consider home equity loans or lines of credit, which typically offer lower interest rates than credit cards. However, these options put your home at risk if you can’t make payments.
Debt Management Plans
Working with a nonprofit credit counseling agency can help you create a debt management plan. These plans may include reduced interest rates and fees negotiated with your creditors.
Making the Most of Your Balance Transfer
Create a Realistic Budget
Success requires understanding your monthly income and expenses. Create a budget that prioritizes debt repayment while covering your essential needs.
Set Up Automatic Payments
Configure automatic payments for more than the minimum amount. This ensures you never miss payments and helps you make steady progress toward your goal.
Track Your Progress
Monitor your balance regularly and celebrate milestones. Seeing your debt decrease can provide motivation to stick with your repayment plan.
Prepare for the End of the Promotional Period
As the 0% APR period approaches its end, evaluate your remaining balance and options. If you can’t pay off the entire amount, consider making a large payment or exploring other promotional offers.
Take Action on Your Debt Today
Balance transfer credit cards provide a powerful tool for conquering high-interest debt, but success depends on choosing the right card and using it strategically. The current market offers exceptional promotional periods, with some cards providing up to 24 months of 0% APR.
Start by calculating your potential savings and reviewing your credit score. Then, compare cards based on promotional period length, transfer fees, and ongoing benefits. Remember, the best card is one that gives you enough time to pay off your debt while minimizing costs.
The key to success lies not just in choosing the right card, but in creating and sticking to a realistic payoff plan. With discipline and the right balance transfer card, you can save hundreds of dollars in interest charges and achieve debt freedom faster than you thought possible.