0% Balance Transfer Credit Cards

To do a balance transfer, apply for a credit card with a low balance transfer APR and low fees, noting the amount you want to transfer on the application, along with information about your current creditor. If your balance transfer credit card application is approved, that new card's issuer will pay your original creditor for the amount transferred. You will then owe that amount, plus a balance transfer fee of 0% - 3%, to the balance transfer card's issuer. If you repay the full amount of your balance transfer before the new card's high regular APR takes effect, you could save a lot of money on finance charges and get out of debt sooner.

Keep in mind that balance transfers can take a while to process, as long as six weeks in some cases. So it's important to keep making payments to your original creditor until the transfer goes through. Otherwise, you risk late fees and credit score damage.

How to do a balance transfer:

1. Check your credit score. Balance transfer credit cards with 0% APRs usually require good credit or better for approval. Knowing your score will make it easier to compare relevant credit card offers.
2. Find the best balance transfer card for you. Compare cards based on their balance transfer APRs, balance transfer fees, and annual fees. Also, consider how much you can afford to pay each month. Using a balance transfer calculator can help.
3. Apply for your balance transfer card. Fill out the application with your personal and financial information, including the section of the application for requesting a balance transfer. Provide the account number and the amount you want to transfer to make the request. It's best to ask for a balance transfer when you apply because promotional 0% APR periods start as soon as the account opens.
4. Keep making payments. Keep up payments to your original creditor until the balance transfer goes through, or you could be marked as past-due. You will be credited for any payments made during this period after the transfer gets processed.
5. Receive a decision: The issuer may allow you to transfer the full amount that you request or offer to transfer part of the balance instead. Or, your balance transfer request could be denied, depending on your creditworthiness and available funds. It may take a few weeks to get a decision.
6. Pay the rest of the balance. Try to pay off a transferred balance before your new credit card's low introductory APR expires. A high regular rate will apply to any balance remaining at that time. If you still have a balance on your original account, continue repaying that as well.

It's also good to note that you can transfer multiple balances to the same credit card. But that can lead to paying a lot in balance transfer fees and interest, if you're not careful.

Now that you've learned how to do a balance transfer, you're on your way to saving money on interest and getting out of debt. For more tips and info, check out WalletHub's in-depth balance transfer guide.

A balance transfer is a good idea if you have good or excellent credit and make an affordable payment plan prior to applying. You generally need good credit or better to get a 0% balance transfer credit card, though these introductory periods are temporary. 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.

Balance transfers are likely to affect your credit score, though not directly. While balance transfers themselves aren’t reflected on credit reports, and thus aren’t directly used to calculate credit scores, balance transfers can change your financial picture in ways that could alter your credit score temporarily.

You can use WalletHub’s free credit score simulator to forecast how a balance transfer might affect your credit score in particular. You can also learn more about how balance transfers affect credit scores in general below.

Here’s how balance transfers affect your credit score:

• High credit utilization rate:

  It’s best to use less than 30% of a credit card’s credit limit. However, a balance transfer can wind up consuming much more than that, which isn’t great for your credit score.

• Hard inquiry:

  When you apply for a balance transfer card, the issuer will pull a copy of your credit report. Known as a hard inquiry, this will lower your credit score slightly, but only temporarily.

• Average age of accounts:

  A new balance transfer card will reduce the average age of your credit card accounts, which could knock a few points off your credit score.

• Future credit score increase:

  Your credit score should recover with time. Making payments on time is crucial to maximizing your credit score after a balance transfer, however, as is avoiding serious debt in the future.

To stay on top of your credit throughout every stage of a balance transfer, sign up for a free WalletHub account. You’ll get daily credit score updates, 24/7 credit monitoring, and personalized credit improvement advice.

There’s no hard-and-fast rule about how many balance transfers you can do. But individual issuers may have their own policies. For instance, you can request up to three balance transfers when applying for the BankAmericard® credit card. Your credit line will also limit the number of balance transfers you’re able to do. The total dollar amount that you can transfer to a credit card can’t exceed the credit limit you’re approved for. You won’t be able to transfer a $10,000 balance to a credit card with a $5,000 limit, for example.

It’s also worth noting that even the best balance transfer credit cards offer money-saving terms only for a limited time. Zero percent transfer deals, and other low introductory APRs, expire after a certain number of months following account opening. And fairly high regular APRs tend to take their place. Some cards have promotional balance transfer fees, too, requiring you to transfer your balance within the first 60 days to maximize your savings. So you don’t want to space out your balance transfers too much because the longer you wait, the less you’re likely to save.

Finally, you can’t count on another 0% balance transfer credit card being available to bail you out at the end of your current card’s interest-free intro period. That means you should only transfer an amount that you can afford to pay off before regular rates kick in.

No, a balance transfer does not cancel a credit card. You are not required to close the account once a balance transfer is complete, either. It may actually be a good idea to keep your old credit card account open, even if you don’t plan on using it. Closing a credit card account after a balance transfer could have a negative effect on your credit score.

When you close a credit card, it reduces your total available credit and drives up your utilization ratio. It’s best to maintain a debt level of less than 30 percent of your total credit limit. Also, the average age of your accounts may decrease, particularly if you close a card that you’ve had for a long time. Potential lenders like to see a lengthy history of credit accounts when reviewing applications for additional credit. You can review some helpful tips on cancelling a credit card without hurting your score.

The exception to the rule, when it comes to cancelling a credit card after a balance transfer, is if the card has an annual fee. You could pay the fee once a year to keep the card active. Or, if you don’t plan on using the card anymore, you may consider closing the account to save money.

If you’re considering credit cards that cater well toward balance transfers, feel free to take a look at some of the best ones.

The best balance transfer credit card for fair credit is the Keypoint Credit Union Visa Classic Credit Card because it offers an intro APR of 0% for 16 months on balance transfers made within 60 days of account opening, and has a $0 annual fee. The balance transfer fee is 2%. Plus, you don’t need to be eligible for a certain credit union to qualify for this balance transfer credit card for fair credit.

Best Balance Transfer Cards for Fair Credit

• Keypoint Credit Union Visa Classic Credit Card
• Aspire Federal Credit Union Platinum Mastercard®
• OneUnited Bank Unity Secured Credit Card
• TDECU Classic Mastercard®
• Capital One QuicksilverOne Cash Rewards Credit Card

If you have fair credit or average credit, you probably won’t qualify for any of the best balance transfer cards on the market. Those are reserved for people with good credit. With fair credit, you’re more likely to end up with a high-interest rate, high transfer fee and low credit limit. 

Still, if a balance transfer is a priority, there are a few cards to choose from. Secured credit cards, however, are not good balance transfer cards for people with fair credit because they don’t let you transfer more than the amount of your refundable security deposit. If you have the money for the deposit, you can just pay off your debt directly and save yourself the 3% to 5% transfer fee.

Yes, there are some completely free balance transfer credit cards, at least for a pre-set period of time. The best free balance transfer credit card used to be Chase Slate® because it offered an introductory APR of 0% for 15 months on balance transfers, a $0 balance transfer fee for 60 days, and a $0 annual fee. Chase Slate® also gave 0% for 15 months on new purchases. Unfortunately, this card is not accepting new applications for the moment.

There are a few free balance transfer offers available right now. But it’s important to remember that no balance transfer is guaranteed to be free. If you get the right card and repay what you owe by the time regular rates take effect, you’ll have yourself a free transfer. But if you have a balance remaining at that point, or you miss a monthly minimum payment along the way, you’ll end up owing interest.

Best free balance transfer credit cards:

• Navy Federal Credit Union Platinum Credit Card: 0% for 12 months on balance transfers, $0 balance transfer fee, $0 annual fee.
• Edward Jones Business Credit Card: 0% for 12 months on balance transfers, $0 balance transfer fee, $0 annual fee.
• U.S. Bank Visa® Platinum Card: 0% for 20 billing cycles on balance transfers, 3% (min $5) balance transfer fee, $0 annual fee.
• Citi Simplicity® Card - No Late Fees Ever: intro APR of 0% for 18 months on balance transfers, 3% (min $5) balance transfer fee, $0 annual fee.
• Citi® Diamond Preferred® Card: intro APR of 0% for 18 months on balance transfers, 3% (min $5) balance transfer fee, $0 annual fee.
• Bank of America® Customized Cash Rewards Credit Card for Students: 0% for 15 months on balance transfers, 3% (min $10) balance transfer fee, $0 annual fee.

All in all, it’s difficult to find a balance transfer credit card that not only has a 0% intro APR but also charges no annual fee and balance transfer fee. Now, banks tend to offer either no balance transfer fee credit cards or 0% balance transfers, but not both.

If you’re a student or have at least good credit, though, you’ve got some good options.

Balance transfer credit cards for bad credit would, in theory, allow you to reduce the cost of existing debt by providing a low introductory interest rate. Reality is a bit different, though. No major issuers currently offer worthwhile balance transfer credit cards to people with bad credit. Most bad-credit credit cards are either fully secured or have very small unsecured credit lines (some are from WalletHub partners). That’s because issuers want people with poor credit to prove themselves before taking on a significant amount of their debt.

Neither type of card will do you much good. With a secured card, you won’t be able to transfer more than you can afford to put down as a security deposit. And if you have the money, why not pay down your debt directly? It’s a similar story with a low-limit unsecured card, just not to the same degree. Plus, such cards’ fees are so high that you’re unlikely to save much, no matter how low of an APR you receive. That’s why even the “best” available balance transfer card for someone with bad credit usually isn’t very good for the task. As a result, we recommend comparing secured credit card offers to find a good card for building credit instead.
 

Best Credit Cards for Bad Credit

• Indigo® Mastercard® for Less than Perfect Credit
• OpenSky® Secured Visa® Credit Card
• Secured Mastercard® from Capital One
• Credit One Bank® Platinum Visa® for Rebuilding Credit
• Discover it® Secured Credit Card

Again, we don’t recommend using a secured card for a balance transfer. Rather, we recommend opting for a secured card, paying its bill on time every single month and routinely adding to your security deposit in order to expedite your credit building efforts. Eventually, you will reach good credit, which is where balance transfer credit card offers start to get interesting.

View entire answer

To do a balance transfer with Citi, apply for a Citi credit card with a low introductory APR on transferred balances. Fill out the balance transfer section of the application with the amount you wish to transfer. Include the name, contact information, and account number of the creditor(s) from which you’ll be transferring the balance. A balance transfer fee may apply to each balance transferred. If approved, you’ll receive your card within 14 days of the decision.

According to Citi, balance transfers from credit cards, auto loans, student loans and several other sources are allowed, as of February 2019. However, Citi will not accept a balance transfer from another Citi account.

Here is how to do a balance transfer with Citi:

1. Apply for a Citi balance transfer credit card.
2. Select the transfer a balance option.
3. Provide the name, address and account number of any creditor(s) and the amount(s) you’d like to transfer.
4. Complete the rest of the application, submit it, and wait for a decision. Pending applications can take up to 30 days.
5. If you’re approved for an account, you should receive your new card within 14 days after approval.

If you already have a Citi credit card account, you can request a balance transfer online. You can also call customer service at (800) 374-9700.

When you do a balance transfer with Citi, make sure you pay off the entire balance before any promotional APR expires. Any unpaid balance will be charged interest at the card’s regular APR. Mounting interest charges can quickly add to the debt you’re trying to eliminate.

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.