Here's When It Might Make Sense to Pair a Balance Transfer With a Rewards Card

If you've got credit card debt and a long list of bills, the idea of combining a balance transfer with a rewards card might feel like juggling flaming torches. But done the right way, it can actually help you save money and earn rewards along the way. Here's when pairing these two strategies can make sense -- and when it probably won't.

You've got high-interest debt eating your budget

The most obvious reason to look at a balance transfer? Interest. If your current card is charging 18% or more, you could be wasting hundreds, or even thousands, of dollars in interest each year. Transferring that balance to a card with a 0% introductory APR on balance transfers can give you some breathing room.

For example, the Wells Fargo Reflect® Card (rates and fees) offers 0% intro APR for 21 months from account opening on qualifying balance transfers and 21 months from account opening on purchases (a go-to 17.99%, 24.49%, or 28.74% Variable APR applies after the intro period).

That's time to chip away at your debt without interest stacking up. You're not just moving money around, you're giving yourself a clear path to get ahead.

You're disciplined enough to pay down the balance

Here's the catch: the 0% APR period on credit cards doesn't last forever. Most cards offer anywhere from 12 to 21 months. That window is your chance to make real progress, but it only works if you actually pay down the balance.

If you're the type who sticks to a budget and can pay more than the minimum each month, pairing a balance transfer with a rewards card can be a smart move. You're essentially giving yourself a short-term interest-free loan while collecting points, cash back, or miles on your everyday spending.

You want rewards without racking up more debt

A rewards card is only valuable if you can pay off what you spend. But when you combine it with a balance transfer strategy, you're in a unique position. You can move your high-interest debt, earn rewards on your new purchases, and avoid new interest -- if you stay disciplined.

For instance, after moving your balance to a card like the Wells Fargo Reflect® Card, you could use the Wells Fargo Active Cash® Card (rates and fees) for everyday purchases and watch your rewards add up while you focus on paying down your debt.

Timing matters more than you think

Balance transfers often come with fees: typically 3% to 5% of the amount transferred. That means it's worth calculating whether the interest you'll save outweighs the fee.

For example, let's say you have $10,000 in credit card debt at 21% APR. If you transfer that balance to the Wells Fargo Reflect® Card, you'd pay a balance transfer fee of 5%, min: $5, or about $500. But you get 21 months from account opening on qualifying balance transfers with 0% intro APR to pay off your balance (then 17.99%, 24.49%, or 28.74% Variable APR). Over that time, you could save roughly $1,536 in interest compared with keeping it on a high-interest card.

Meanwhile, if you use the Wells Fargo Active Cash® Card for everyday spending, you'd earn 2% cash rewards on all purchases. Spend $2,000 per month on groceries, gas, and bills over those 21 months, and that's $840 back, all while you focus on paying down your transferred balance.

Also, keep in mind your credit score: applying for a new card can ding it slightly, so make sure your timing aligns with your overall financial picture.

Ready to start paying down your debt?

If you're serious about tackling high-interest credit card debt while still earning rewards, it's worth exploring your options. The right balance transfer card can give you months of 0% APR breathing room, while a rewards card can make everyday spending work in your favor.

Take a look at our best balance transfer cards to see which options could fit your financial goals, and start turning your debt strategy into real progress today.