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11 Best Credit Card for Balance Transfer With 0% APR Of 2023

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Best Credit Card for Balance Transfer

Best Credit Card for Balance Transfer

Best Credit Card for Balance Transfer

What Is a Balance Transfer?

A balance transfer is a financial manoeuvre in which a borrower moves a balance from one credit card to another, often to take advantage of a lower interest rate on the new credit card. This can be a helpful way to save money on interest if you have a high-interest rate on your current credit card and need to pay off the balance quickly.

To initiate a balance transfer, you typically need to apply for a new credit card with a lower interest rate and be willing to accept the balance from your old credit card. You’ll need to provide information about the account you want to transfer the balance from and the amount you want to transfer. Once the balance transfer is approved, the amount you transferred will be credited to your new credit card account, and you’ll be responsible for making payments on the balance at the lower interest rate.

It’s important to remember that balance transfers often come with fees, which can vary depending on the credit card issuer and the terms of the offer. Additionally, many balance transfer offers have a time limit, after which the lower interest rate will expire. You’ll be responsible for paying the regular interest rate on any remaining balance.

Best Credit Card for Balance Transfer

Here’s a Summary of the Best Credit Card for Balance Transfer

CREDIT CARDBEST FORCREDIT SCOREANNUAL FEEWELCOME BONUS
Wells Fargo Reflect® CardBest Overall Balance Transfer Card for Long Intro APR PeriodExcellent, Good$0N/A 
Bank of America® Customized Cash Rewards credit cardBest Balance Transfer Card for Choosing Your Own RewardsGood, Excellent$0$200 
U.S. Bank Visa® Platinum CardHonorable MentionGood/Excellent$0N/A 
Citi® Double Cash CardBest Balance Transfer Card for Cash BackExcellent, Good$0N/A 
BankAmericard® credit cardBest Balance Transfer Card with Overdraft ProtectionGood, Excellent$0N/A 
Citi® Diamond Preferred® CardBest Balance Transfer Card for Long Transfer WindowExcellent, Good$0$150
Navy Federal Credit Union Platinum Credit CardBest for No Balance Transfer FeeAverage to Excellent$0N/A 
Chase Slate Edge℠Best for Potential APR Reduction on Existing BalancesExcellent, Good$0N/A
Chase Freedom Flex℠Best Balance Transfer Card for Overall RewardsExcellent, Good$0$200 bonus 
Citi Rewards+® CardBest Balance Transfer Card for Small PurchasesExcellent, Good$020,000 points
Citi Simplicity® CardBest Balance Transfer Card for Late Fee ForgivenessExcellent, Good$0N/A
Table Credits: forbes.com

Do balance transfers hurt your credit?

Balance transfers can potentially have an impact on your credit score, but the effect depends on several factors.

One factor is whether you can make your payments on time and in full each month. If you can do so, a balance transfer may not have a significant impact on your credit score. However, if you are unable to make your payments on time, or if you are only making the minimum payment each month, this could hurt your credit score.

Another factor to consider is the credit utilization ratio, which is the amount of credit you are using compared to the amount of credit that is available to you. If you transfer a balance to a credit card with a lower credit limit, this could increase your credit utilization ratio, which could hurt your credit score. However, if you transfer a balance to a credit card with a higher credit limit, this could have a positive effect on your credit score.

In general, it is important to manage your credit responsibly and to make sure that you can make your payments on time and in full each month. This will help to ensure that your credit score is not negatively affected by a balance transfer.

How do balance transfer business credit cards work?

Balance transfer business credit cards allow you to transfer high-interest credit card balances from other credit cards to a card with a lower interest rate. This can save you money on interest charges and help you pay off your balance more quickly.

To use a balance transfer credit card, you will need to apply for the card and be approved. Once you have been approved and have received your card, you can request a balance transfer by contacting the credit card issuer and providing them with the account information for the credit card
to which you want to transfer the balance. The credit card issuer will then transfer the balance to your new card, and you will be responsible for paying off the balance on the new card according to the terms of your credit card agreement.

There are usually fees associated with balance transfers, such as a balance transfer fee, which is a percentage of the amount of the balance that you are transferring. It is important to carefully review the terms and conditions of a balance transfer credit card before applying, to make sure that the card is a good fit for your needs.

What is a 0% balance transfer?

A 0% balance transfer is a type of balance transfer credit card offer that allows you to transfer a balance from one credit card to another without incurring any interest charges on the transferred balance for a promotional period. This can be a good option if you have a high-interest credit card balance that you are trying to pay off, as it can help you save money on interest charges and pay off your balance more quickly.

With a 0% balance transfer credit card, you can typically transfer a balance from another credit card to the new card without paying any balance transfer fees. However, it is important to be aware that these offers often come with other fees, such as annual fees, and that the promotional 0% interest rate will typically only last for a certain period, after which the regular interest rate will apply to any remaining balance.

It is important to carefully review the terms and conditions of a 0% balance transfer credit card offer before applying, to make sure that the card is a good fit for your needs and that you will be able to pay off your balance before the promotional interest rate period ends.

What is a balance transfer fee?

A balance transfer fee is a charge that is assessed when you transfer a balance from one credit card to another. The fee is usually a percentage of the amount of the balance that you are transferring, and it is intended to cover the costs associated with processing the balance transfer.

For example, if you transfer a balance of $1,000 and the balance transfer fee is 3%, you will be charged a fee of $30. The fee will be added to the balance that you are transferring, so you will be responsible for paying off the balance plus the fee on the new credit card.

Balance transfer fees can vary depending on the credit card issuer and the terms of the credit card agreement. It is important to carefully review the fees associated with a balance transfer credit card before applying, to make sure that the card is a good fit for your needs and that the fees are reasonable.

Is there a downside to balance transfers?

Yes, there can be downsides to balance transfers. Here are a few potential drawbacks:

  1. Balance transfer fees: Many credit cards charge a fee for balance transfers. This fee is usually a percentage of the amount being transferred, and it can add up quickly.
  2. Limited time to pay off transferred balances: Many credit cards offer a promotional interest rate on balance transfers, but this rate is often only available for a limited time. If you don’t pay off your transferred balance before the promotional rate expires, you may end up paying a higher interest rate on that balance.
  3. Impact on credit score: Making a balance transfer may temporarily lower your credit score. This is because the credit card issuer will perform a hard inquiry on your credit report when you apply for the card. However, if you make timely payments and pay off your transferred balance, your credit score should eventually recover.
  4. May not solve underlying financial problems: If you’re using a balance transfer to pay off high-interest credit card debt, it can be a helpful tool. However, if you don’t address the underlying financial issues that caused you to accumulate debt in the first place, you may end up in the same situation again in the future.

Is it better to do balance transfer or pay off?

Whether it is better to do a balance transfer or pay off a credit card depends on your financial situation. Here are some things to consider when deciding which option is best for you:

  1. Interest rates: If you have high-interest credit card debt, a balance transfer could potentially save you money by allowing you to pay off your debt at a lower interest rate. However, balance transfers often come with fees, so it’s important to compare the interest you would pay on the transferred balance to the balance transfer fee to determine if the transfer is worth it.
  2. Credit utilization: Paying off a credit card can help improve your credit score by reducing your credit utilization ratio, which is the amount of credit you are using compared to the amount of credit available to you. If you have a high credit utilization ratio, paying off a credit card can be beneficial for your credit score.
  3. Debt payoff strategy: If you have multiple credit card balances, it may be beneficial to pay off the credit card with the highest interest rate first, or to use the debt snowball method and pay off the credit card with the smallest balance first to build momentum.

Ultimately, the best course of action will depend on your specific financial situation and goals. It might be helpful to speak with a financial advisor or credit counsellor to determine the best plan for paying off your debt.

Will a balance transfer increase credit score?

A balance transfer itself will not directly increase your credit score. However, using a balance transfer to pay off credit card debt can indirectly have a positive impact on your credit score in several ways:

  1. Lowering your credit utilization ratio: If you pay off a credit card with a balance transfer, it can help lower your credit utilization ratio, which is the amount of credit you are using compared to the amount of credit available to you. A lower credit utilization ratio can help improve your credit score.
  2. Reducing the number of credit accounts with balances: If you pay off a credit card with a balance transfer, it can help reduce the number of credit accounts with balances, which can also have a positive impact on your credit score.
  3. Avoiding late payments: If you use a balance transfer to pay off a credit card with a high-interest rate, it can help you avoid making late payments or defaulting on your credit card debt. Late payments and defaults can hurt your credit score.

It’s important to note that balance transfers often come with fees, so it’s important to carefully consider the cost of the transfer versus the potential benefits to your credit score before deciding to do a balance transfer.