Yes, there are several good credit card balance transfer promotions. The U.S. Bank Platinum has an introductory period of 0% for 20 billing cycles on both balance transfers and purchases. The U.S. Bank Platinum regular APR ranges from 15.99% to 25.99% (V). The balance transfer fee is 3% (min $5).
The best credit card balance transfer promotions aren’t guaranteed to last forever. If you’ve been thinking about a balance transfer and have worked out a solid repayment plan, jump on the chance for a long 0% APR with a $0 transfer fee.
The best deals are reserved for those with good or excellent credit, so if you have bad or fair credit, your first goal should be to improve it. Once you get approved for a balance transfer credit card, don’t wait around to complete the transfer because the 0% APR clock usually starts ticking the day your account opens.
Balance transfers don’t hurt your credit score directly, but transferring a balance can indirectly cause credit score damage. When you apply for a balance transfer credit card, for example, it will generate a hard inquiry on your credit report, causing a slight dip in your credit score.
If you transfer a balance to an existing credit card account, however, there is no hard inquiry and no credit score damage. A balance transfer could still result in high credit utilization, though, and allow you to rack up more debt than you can afford to repay. Both of those things can hurt your credit score.… read full answer
So, the act of transferring a balance itself won’t affect your credit, but it will indirectly alter several key components of your credit profile, from utilization to the age of your accounts. These changes might lower your score a bit in the short term. But over time, interest savings and the ability to pay off your debt faster should make transferring a balance a net positive for your credit score.
How Balance Transfers Can Help or Hurt Your Credit Score
Credit Inquiries Hurt: If you apply for a new balance transfer card, the resulting hard inquiry will likely cause a slight dip in your credit score for up to 12 months.
Lower Account Age Hurts: Adding a new balance transfer card will reduce the overall age of your accounts, which can have a slight negative impact on your score.
Increased Utilization Hurts: Keep an eye on how the transfer affects your account’s credit utilization. Making a transfer will usually add 3%-5% to your debt due to balance transfer fees. If your utilization is over 30% of your credit limit, that’s not good for your score.
Missed Payments Hurt: If you don’t continue to make payments to your original creditor while the balance transfer is being processed, your credit score will suffer. Balance transfers can take up to three weeks, or be completed in just a few days, after you make a request or apply for a card.
Reduced Utilization Helps: If you leave your old credit card(s) open, adding a new card will reduce your utilization ratio across all accounts, assuming no additional spending. The utilization on the card you transferred the balance from will drop, and it will increase on the card you transferred the debt to.
Low Interest Helps: Balance transfer cards often have 0% introductory APRs. This gives you the chance to pay off your balance faster, since the full amount of your payments will go to the principal rather than interest. This is good for your score long-term.
Less Debt Helps: A balance transfer can help you reduce your debt load. That’s important because how much debt you owe is a key ingredient in your credit score. The less, the better, since people with little-to-no debt are in a more stable position financially.
Balance transfers won’t hurt your credit by themselves. But they affect other elements of your credit that could bring your score down a little temporarily. Still, the benefits will outweigh the negatives in the long run, as long as you plan to repay most, if not all, of your balance during your card’s low introductory APR period.
Where people get into trouble is trying to use a balance transfer to support unsustainable spending habits, thinking 0% balance transfer credit card offers are always available. They’re not, and learning that the hard way is a very expensive mistake. So make sure to use a balance transfer calculator to make a payment plan.
The catch with balance transfer credit cards is that a balance transfer fee usually applies and you will have to start paying interest on the remaining balance when any low-interest introductory period ends. Credit card companies also limit the types of balances you can transfer, and opening a new card leads to temporary credit score damage.… read full answer
In general, balance transfer credit cards are very helpful, but knowing about their potential downsides is useful so that you can pay off your debts as efficiently as possible.
Here’s the Catch With Balance Transfer Credit Cards:
FeesNot all balance transfer cards charge a balance transfer fee, but most do. This fee is typically 3% to 5% of the total balance transferred, and the average is 2.44%.
Expensive regular APRsMany balance transfer credit cards offer introductory APRs of 0% for 6 to 21 months on transferred balances. But after this period expires, any remaining balance is subject to an expensive regular APR, which is [ccl-avgapr-bt-intro] on average for a balance transfer card.
Limits on the types of balances you can transferDifferent credit card companies allow you to transfer different types of debts to their credit cards. It’s important to find out which types of debts are eligible before you apply for a specific credit card.
Temporary credit score damageWhen you apply for a new balance transfer credit card, the hard inquiry into your credit report will cause your credit score to drop by around 5 to 10 points. Luckily, you can recover from this with a few months of responsible credit use.
The good news is that the benefits of balance transfer credit cards outweigh the drawbacks. Balance transfer credit cards can help you save a lot of money on interest and get debt-free sooner. You can also use these cards to consolidate multiple debts into one monthly payment.
Most credit card companies do offer balance transfers. In fact, many issuers offer credit cards with promotional 0% APR periods on balance transfers, during which new cardholders don’t pay any interest on transferred balances. The only major credit card company that currently doesn’t allow balance transfers at all is American Express.… read full answer
Some credit card issuers rolled back promotional balance transfer APRs in the wake of the economic disturbance caused by the pandemic in 2020. For example, the length of the average 0% balance transfer offer fell to 12.2 months in 2020. However, no-interest balance transfer offers have been steadily returning, with an average 0% intro period of about 13 months on transferred debt in 2021.
0% for up to 21 months from account opening on qualifying balance transfers
3% intro for 120 days, then up to 5% (min $5)
Credit card balance transfer offers are constantly changing based on the health of the economy and the financial interests of card issuers. You can check out the best balance transfer credit cards currently on the market on WalletHub.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.