Balance transfer cards offer 0% introductory APR periods, allowing you to pay down debt without accumulating interest. Used strategically, they can save thousands and accelerate your journey to debt freedom.
How Balance Transfers Work
You transfer existing credit card debt to a new card with 0% APR for a promotional period (typically 12-21 months). Instead of paying 20%+ interest, all your payments go toward principal.
Balance Transfer Fees
Most cards charge 3-5% of the transferred amount. A $5,000 transfer at 3% costs $150. This is usually much less than the interest you'd pay otherwise.
Top Balance Transfer Cards
Wells Fargo Reflect Card
- 0% APR period: 21 months on purchases and transfers
- Transfer fee: 5% ($5 minimum)
- Annual fee: $0
- Best for: Longest 0% period available
Citi Simplicity Card
- 0% APR period: 21 months on transfers, 12 months on purchases
- Transfer fee: 5% ($5 minimum)
- Annual fee: $0
- Unique: No late fees ever
Citi Diamond Preferred
- 0% APR period: 21 months on transfers, 12 months on purchases
- Transfer fee: 5% ($5 minimum)
- Annual fee: $0
U.S. Bank Visa Platinum
- 0% APR period: 18 billing cycles on transfers and purchases
- Transfer fee: 3% ($5 minimum)
- Annual fee: $0
- Best for: Lower transfer fee
BankAmericard Credit Card
- 0% APR period: 18 billing cycles on purchases and transfers
- Transfer fee: 3% ($10 minimum)
- Annual fee: $0
Discover it Balance Transfer
- 0% APR period: 18 months on transfers, 6 months on purchases
- Transfer fee: 3% intro rate (5% after)
- Annual fee: $0
- Bonus: 2% cash back at restaurants and gas (up to $1,000/quarter)
Balance Transfer Math
Example: $6,000 debt at 22% APR
- Without transfer: Paying $300/month = ~24 months, ~$1,400 in interest
- With 0% transfer: Paying $300/month = 21 months, $180-300 fee only
- Savings: ~$1,100-1,200
Maximizing Balance Transfers
Calculate Your Payoff Plan
Divide your balance by the 0% period months. That's your minimum monthly payment to pay off before interest starts.
Don't Add New Debt
Avoid using the card for new purchases. Focus entirely on paying down the transferred balance.
Set Calendar Reminders
Know when your 0% period ends. Interest on remaining balances is typically 20%+.
Consider Multiple Transfers
If you can't pay off during one 0% period, you may be able to transfer again to a new card before the promotional rate expires.
What to Avoid
Missing Payments
Late payments can forfeit your 0% rate immediately.
Only Making Minimums
Minimum payments won't pay off the balance in time. Calculate the payment needed to reach zero.
Ignoring the End Date
Deferred interest cards (store cards especially) charge back interest on the original balance if not paid in full.
Continuing to Spend
Adding new debt defeats the purpose. Cut up or freeze the old cards.
Eligibility Requirements
- Good to excellent credit (typically 670+)
- Debt-to-income ratio within acceptable limits
- Not too many recent credit applications
Balance transfers are a tool within broader debt payoff strategies. Combined with a solid budget, they accelerate your path to financial freedom.
