Best Balance Transfer Credit Cards with 0% APR of 2024

What you need to know about balance transfers

What is a balance transfer?

Simply put, a balance transfer is where you move the balance remaining on one credit card to another. People often do this when their current credit card’s interest rate is hindering their ability to pay off their debt, so they transfer their balance to a card with a 0% balance transfer offer. Doing so gives them more time to pay off their debt before the new card’s interest sets in.

How much can you save with a balance transfer?

Consider this example:

John has a balance of $4,000 on a credit card with a 19% APR and wants to pay it off in 18 months. 

Cost estimate without a balance transfer

If he keeps his debt on the 19% interest card, he’ll have to pay roughly $258 per month and will accrue an additional $628 in interest, for a total of $4,628 paid ($4,000 + $628 = $4,628).

Cost estimate with a balance transfer card

If John transferred the balance to a balance transfer card with 0% interest for 18 months and a 5% balance transfer fee, he’ll pay $200 upfront for making the transfer (5% of $4,000 = $200), making his new debt $4,200 ($4,000 + $200 = $4,200). John won’t need to pay any interest so all of his payments will go toward that $4,200 debt.

If he pays the same $258 per month he was paying before, he’ll finish paying off his debt in 17 months with no interest charges, saving $428 overall ($4,200 vs. $4,628).

Balance transfer fees

Most balance transfer credit cards, although they have a long 0% APR period, also charge upfront balance transfer fees, usually between 3% and 5% of the balance transferred. 

Although the example above shows the potential savings with a balance transfer card, it’s not always the right solution for paying off debt. If you plan on paying off your debt in a short time, a balance transfer fee could end up costing you more than your initial interest rate would have. 

For example, in the scenario above:

• If John was planning on paying off his $4,000 debt in 5 months on a card with 19% APR, he’d pay roughly $850 per month and would accrue $190 in interest, for $4,190 paid overall.
• Transferring the balance to a balance transfer card with a 5% fee would still charge him $200 upfront, for $4,200 paid overall, costing him an additional $10 over what he would have paid on his initial card.

How to do a credit card balance transfer

As we have now established, if you have debt on a credit card with a high interest rate, it may make sense to move that balance to a credit card with a low balance transfer interest rate.

Here are the steps to follow to do a balance transfer:

Pros and cons of balance transfer cards

There are many reasons to consider a balance transfer card, but there are also some drawbacks. Be sure to carefully consider both sides before selecting a balance transfer card.

Reasons to get a balance transfer card

There are many reasons to pick up a balance transfer credit card, and these factors can vary from person to person. Consider the following reasons you may want to pick a card with an intro APR for balance transfers over other options.

• You have significant credit card debt.
  If you have thousands of dollars in credit card debt that you can’t seem to pay off, a balance transfer card can help by consolidating the balance of all your debts on one new credit card and allowing you to save money on interest.
• You’re currently paying high interest rates.
  The average credit card interest rate is currently over 22%, but many of the best credit cards charge significantly higher rates than that. If you’re carrying a balance on a card with a high APR, qualifying for a 0% APR offer will inevitably save you money.
• You want to simplify your financial life.
  Not only do balance transfer credit cards help you save money on interest, but they let you go from multiple payments down to one each month. After you consolidate the balance of your debts, keeping track of your progress becomes much easier.
• You hope to pay off credit card debt faster.
  Balance transfer credit cards can help you pay down debt faster because 0% APR offers let you pay more toward the principal of your balance each month. No interest is being charged for a limited time, so every cent you pay goes toward your debt.

How to choose a balance transfer card

There are many factors to think about when deciding on a balance transfer credit card. Consider the following elements when making your choice:

Alternatives to balance transfer credit cards

1. Pay more than the minimum.
   Paying the minimum monthly payment due may keep you from incurring a penalty on your account, but it can also make it nearly impossible to pay off your debt promptly. You’ll keep accruing interest until you’ve finished paying off your balance, so it’s always better to pay more than the minimum due. This will help eliminate your debt more quickly and will mean paying less in interest overall. 
2. Utilize a credit card payoff calculator.
   A credit card payoff calculator can help you make a debt repayment plan by calculating various scenarios and showing you how much money you can save. This can help you feel more in control of your finances as you’re working towards becoming debt-free.
3. Ask your credit card issuer to lower your interest rate.
   It’s possible that if your credit score has improved since you first got your credit card, you may be able to get your interest rate lowered.
4. Raise your credit score.
   If your credit score is too low for a balance transfer card or your interest rate is too high because of having a low score, credit cards for bad credit can help you rebuild. Additionally, there are a few easy steps you can take to raise your credit score quickly.
5. Get a personal loan.
   You may be able to get a personal loan with a lower interest rate than your credit card currently charges. Some personal loans are even designed specifically for debt consolidation. Note, however, that if your credit score or credit history is less than ideal, you may need a co-signer to get approved for a loan.

How we selected our top balance transfer credit cards

To find the best balance transfer cards, we looked at factors such as introductory interest rates, the length of intro APR offers, balance transfer fees, transaction fees, and rewards (cards with gas rewards, grocery rewards, etc.) We also looked at credit limit minimums, creditor rules, fine print, third-party cardholder perks like travel insurance, credit card balance requirements, and other factors.  Ultimately, we chose cards that can offer you the most value.

Related resources

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• Best 0% APR credit cards