Best Balance Transfer Credit Cards

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.

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.

You can use WalletHub’s free credit score simulator tool to get a sense of how a balance transfer might affect 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.

Bottom Line

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.

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.

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.

You can use WalletHub’s balance transfer calculator to compare the cost of repaying what you owe with your current card versus taking advantage of the best balance transfer offers. You can also check your latest credit score for free on WalletHub, the only site with free daily updates.

Yes, a credit card balance transfer request can be denied, and there are plenty of reasons why, ranging from having a poor credit history (when applying for a new balance transfer card), to a balance transfer exceeding your credit limit or attempting to transfer a balance to an ineligible card. I think it's best to call your bank if your balance transfer request was declined and find out why.

The best Bank of America balance transfer offer is 0% for 18 billing cycles for any balance transfers made in the first 60 days after getting the BankAmericard credit card and paying a balance transfer fee of 3% (min $10). There is no annual fee.

Bank of America balance transfers work with several types of debt, including balances from credit cards, auto loans, student loans, mortgages, and more. You just can’t transfer debt between BofA products.

Best Bank of America Balance Transfer Offers

• BankAmericard® credit card: Intro APR of 0% for 18 billing cycles for any balance transfers made in the first 60 days. 3% (min $10) balance transfer fee.
• Bank of America® Unlimited Cash Rewards credit card: Intro APR of 0% for 15 billing cycles for any balance transfers made in the first 60 days. 3% (min $10) balance transfer fee.
• Bank of America® Unlimited Cash Rewards credit card for Students: Intro APR of 0% for 15 months on balance transfers made within 60 days of account opening. 3% (min $10) balance transfer fee.
• Bank of America® Customized Cash Rewards credit card: Intro APR of 0% for 15 billing cycles for any balance transfers made in the first 60 days. 3% (min $10) balance transfer fee.
• Bank of America® Customized Cash Rewards Credit Card for Students: 0% for 15 months intro APR on balance transfers made within 60 days of account opening. 3% (min $10) balance transfer fee.
• BankAmericard® Credit Card for Students: Intro APR of 0% for 18 months on balance transfers made within 60 days of account opening. 3% (min $10) balance transfer fee.

Balance transfers take at least 14 days to complete. Initiate your transfer as soon as possible because the intro APR period starts as soon as you open your account. When the intro period ends, any remaining balance will accrue interest at the card’s regular APR.

Keep in mind that you will need good or excellent credit to qualify for most of these cards, and you need to be a student to get the limited version.

One of the best Chase balance transfer cards is Chase Slate Edge℠ because it offers an intro APR of 0% for 18 months on both balance transfers and purchases. The card’s regular APR is 15.24% - 23.99% (V). There is also a balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after). However, there are a few other good Chase balance transfer cards to choose from.

Best Chase Balance Transfer Cards

Keep in mind that there are plenty of good balance transfer alternatives from other credit card companies, too. You can check out our editors' latest picks for the best balance transfer credit cards on the market and see which one suits your needs better.

The best balance transfer credit card is not one-size-fits-all. The answer depends on how much you owe, how quickly you’ll be able to repay it and what your credit score is. Those factors will tell you which cards are attainable and help you figure out how much each will save you. But we can certainly point you in the right direction.

WalletHub’s editors compared hundreds of credit cards based on their balance-transfer appeal. In the end, five cards in particular stood out. None of them charge annual fees. Most of them require at least good credit for approval. And you can get the rest of the particulars below.

Here are the best balance transfer credit cards:

To learn more about the cream of the transfer crop, check out WalletHub’s full review of the year’s best balance transfer credit cards. And if you’re not sure whether you can qualify for one of the top transfer cards, check your latest credit score for free on WalletHub.

One of the best debt consolidation credit cards is the Wells Fargo Reflect℠ Card. This credit card offers an intro APR of 0% for up to 21 months from account opening on qualifying balance transfers. Usually, the best credit cards for debt consolidation have 0% introductory APRs, $0 annual fees, low balance transfer fees, and high enough credit limits to accommodate balance transfers from numerous accounts.

When comparing credit cards for debt consolidation, your goal should be to find an offer that will reduce the total cost of your debt and shorten your timeline to debt freedom.

Best Debt Consolidation Credit Cards

In general, the best debt consolidation credit cards are those with the best combination of 0% APRs, low fees, and high credit limits. You can run the numbers on your options with our balance transfer calculator.

Bear in mind that a lot depends on your credit standing. Usually, there aren’t too many debt consolidation credit cards for people with less-than-good credit.

You should do a balance transfer if it will save you money. You should do a balance transfer if it will save you money. To determine whether a balance transfer will save you money, use a balance transfer calculator to compare the cost of sticking with your current card to the savings available from the latest balance transfer offers. You will also need good credit or better to qualify for the best balance transfer cards. You can check your credit score for free on WalletHub. 

Doing a balance transfer means using a new credit card to pay down existing debt from another credit card or loan. A transfer should save you money on interest and enable you to pay off your debt faster. But if you’re not careful, you could wind up with even more debt and a higher interest rate than you started with.

When it Makes Sense to do a Balance Transfer

• Your credit is good or excellent: A credit score of 700+ is typically required to get a balance transfer credit card with a 0% APR.
• You have moderate debt: The best balance transfer cards have minimum credit limits of $500 - $1,000, but will offer higher credit limits to people with higher credit scores. If you have a lot of debt, you may only be able to transfer part of what you owe.
• You take fees into account: Balance transfers cost you a percentage of the total debt transferred, usually 3% to 5%. That fee gets added to your balance on the new card. So the balance plus the fee must be less than or equal to your credit limit on the new card. A few cards do not charge a transfer fee.
• You have a payoff plan: Figure out what monthly payments you’ll need to make to pay off the balance by a target date. Aim to pay in full before any low intro APR period ends, given that regular rates are often above 20%.
• You have a separate credit card for new purchases: When you charge a new purchase to a balance transfer card, it’s subject to the card’s purchase APR. And there’s not always a low intro APR for purchases, even when a card offers 0% balance transfers.

If you decide that you should do a balance transfer, make sure to shop around for the best offer. Take a look at the best balance transfer credit cards and compare their terms to see which one fits your needs.

Once you do a balance transfer, you may be tempted to apply for another balance transfer card when the introductory APR on your current card expires. That may sound like a good plan to avoid paying interest, but it’s easy to rack up more debt than you can afford. Plus, 0% APR balance transfers aren’t always available.

The best way to pay off debt and raise your credit score is to repay balances with the highest interest rates first. This will reduce the overall cost of repaying the debt and make the task easier because the total amount you owe won’t be growing as fast. Always make at least the minimum payment due for each balance every month, though. Keeping all accounts current will help raise your score, or at least prevent it from going down. Beyond that, just try to budget as much as you can for paying off debt each month in order to bring your balances to zero as soon as possible.

In addition to the overall strategy of paying off your most expensive debt first while staying current on other balances, make sure to explore options for reducing the cost of what you currently owe. If you have good credit or better, balance transfer credit cards and debt consolidation loans could help you get a lower interest rate. With a lower rate, more of your monthly payment amount can go to your principal balance, speeding up the time it takes to pay off debt.

You might also consider consolidating through a home equity loan or home equity line of credit, which offer extremely low APRs but are secured by your house. Another option is a debt management program, in which you work with your creditor(s) to set up a payment plan, often with a lower interest rate and reduced payments.

Best ways to pay off debt and raise your credit score:

• Pay at least the minimum amount due on every account each month.
• Spend as much as you can afford on monthly payments toward your most expensive debt – the balance with the highest APR.
• Make sure to save a bit each month, to give yourself a safety net in case of unexpected expenses.
• Lower your interest rates with either a debt consolidation loan or a balance transfer credit card.
• Consider tapping into home equity through a home equity loan or HELOC.
• Enroll in a debt management program and create a payment plan.

Paying off debt is good for your credit score because it reduces your debt-to-income ratio while establishing a good payment history – both of which are major factors in raising your credit score.

It may take at least a few billing periods before you’ll notice any significant improvement, though. A lot depends on your starting point as well as how responsibly you manage the rest of your finances moving forward.

To track your progress, you can sign up for a free WalletHub account and get free daily credit score updates plus personalized advice.

You can transfer money from one bank to another via an electronic transfer. Both accounts could be yours, or one could belong to someone you’re paying. You can also transfer money from a bank account to an investment account, prepaid card or peer-to-peer payment account (e.g. Venmo), among other destinations. It’s generally free, and it’s very easy to set up.

Here’s how to transfer money from one bank to another:

1. Log into your online account on your bank’s website.
2. Navigate to “Account Services & Settings” (or something similar).
3. Select “Manage External Accounts,” then “Add External Account” (or something similar).
4. Enter the account number and routing number.
5. Click “Continue” and follow the prompts.
6. Choose a transfer amount and frequency.
7. Send the money.

The specifics may vary a bit by bank. And there are lots of different reasons for wanting to transfer money from one bank account to another. But it’s worth pointing out that using multiple bank accounts can be a helpful budgeting tool. If you want to limit your non-necessity spending to a certain amount, for example, you can set up a monthly transfer for that amount from the account where you receive your paycheck to another account that’s designated for fun. Or you might have one bank account with a high APY, where you want to keep most of your money, and another.