The Hilton Honors American Express Card does not allow balance transfers. In general, balance transfers let you shift high-interest debt from your current account to another issuer’s credit card and pay off the balance, presumably at a reduced interest rate.
The objective of a balance transfer is to save money on interest, so you will want a card with a low introductory APR on balance transfers. Just be sure to pay off the transferred balance in full before the introductory rate expires. Otherwise, the remaining balance will accumulate interest daily at the card’s regular APR.
You can find out how much a balance transfer card with a low intro APR will save you in interest charges by using WalletHub’s balance transfer calculator. This tool will also recommend credit cards that may help you save money and get out of debt faster.
A balance transfer is a good idea if you need months to pay off high-interest debt and you are able to qualify for a 0% balance transfer credit card deal. Most balance transfer cards require a 700+ credit score, and most also have high regular APRs, making it important to repay what you owe before the 0% period ends. You generally need good credit or better to get a 0% balance transfer credit card. Most balance transfer cards have very high regular APRs, making it important to repay what you owe before the 0% period ends.… read full answer
You’ll also want to make sure the new card’s balance transfer fee is as low as possible. The average fee is just under 3%. But, from time to time, there are credit cards that have both 0% APR on balance transfers and no balance transfer fee.
A balance transfer APR is the interest rate an issuer charges on debts moved to a credit card from another loan or credit card. Many balance transfer offers include an introductory 0% APR that lasts for a specified number of months, usually 6 to 21 months. Once an introductory balance transfer APR expires, any remaining balance accrues interest at the card’s regular balance transfer APR. This interest accrues daily, and is calculated by multiplying the day’s ending balance by the balance transfer APR and then dividing that number by 365.… read full answer
Here are some of the best balance transfer credit cards:
This card offers an intro APR of 0% for 20 billing cycles on both balance transfers and purchases. After this period expires, its regular APR is 17.49% - 27.49% (V). There’s also a balance transfer fee of 3% (min $5). The card has a $0 annual fee.
The card’s intro APR is 0% for up to 21 months from account opening on qualifying balance transfers and purchases. Then, the regular APR kicks in, which is 15.99% - 27.99% Variable. The balance transfer fee is: 3% intro for 120 days, then up to 5% (min $5). This card has a $0 annual fee.
This card comes with a 0% intro APR for 18 months. The regular APR is 16.99% - 26.99% (V). The card’s balance transfer fee is: 3% intro fee ($5 min) for each transfer in first 4 months, after that 5% ($5 min) for each transfer. With this card, you also get 2% cash back on every purchase. There is a $0 annual fee.
The card’s intro APR is See Terms for 21 billing cycles for any balance transfers made in the first 60 days. It also has a See Terms APR on purchases for 21 billing cycles. Its regular APR is See Terms. There is also a balance transfer fee of 3% (min $10). The card comes with a $0 annual fee.
Tips for choosing a balance transfer credit card:
In most cases, you will need a good credit score or better to qualify for one of the best balance transfer credit cards. Issuers will also review other information, such as your credit history, income, employment status, payment history and debt level.
However, the balance transfer APR is one of a number of different credit card APRs. A credit card will also include separate APRs for purchases and cash advances. In many cases, there’s also a penalty APR for late payments.
So, when comparing balance transfer credit cards, it’s important to look at more than just the introductory balance transfer APR. Applicants should also consider the card’s regular APR, along with its transfer fee and annual fee. It’s important to consider how long it will take to repay the transferred debt, too.
A balance transfer does count as a payment to the original creditor to which you owed the balance. The issuer of the balance transfer card will submit payment to the old creditor for the amount of the transfer. Once the first monthly statement comes for your balance transfer card, you will need to begin making payments to that card’s issuer.… read full answer
Balance transfer timelines vary by issuer. It can take as few as 5 to 7 business days for American Express balance transfers and as many as to 14 business days for balance transfers with Bank of America, Capital One, US Bank and Wells Fargo. You should continue to make at least the minimum payment to your original creditor until the balance transfer posts to the new account. If a balance transfer posts after your old card’s due date and you didn’t submit a payment by then, you may be charged a late fee. Any additional payments you make will be deducted from the balance you transfer.
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