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.
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 0% for 21 billing cycles for any balance transfers made in the first 60 days. It also has a 0% APR on purchases for 21 billing cycles. Its regular APR is 14.24% - 24.24% Variable. 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.
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