Best Balance Transfer Credit Cards of September 2019

Balance transfer credit cards are a seriously underrated financial tool for people who have high-interest credit card debt. Our favorite balance transfer credit cards offer long 0% intro APR periods that allow you to avoid interest on your balances, pay down debt faster, and free yourself of costly credit card debt forever. Used wisely, a balance transfer card can save you thousands of dollars in interest compared to carrying a balance at a typical credit card APR of about 17% per year. The best balance transfer cards offer 0% intro APRs for as long as 21 months on amounts transferred, while other cards go so far as to waive fees, thus offering truly free short-term financing.

Many financial decisions can be boiled down to a few key factors, whereas mostly everything else is noise that risks overcomplicating straightforward financial decisions as paralysis by analysis kicks in. We want to help you confidently find the best credit cards for your needs, which is why the lens through which we picked the top balance-transfer credit cards focuses heavily on the following features:

• Length of the 0% intro APR for balance transfers
  
• Inclusion and length of a 0% intro APR for purchases
  
• Fees, including balance transfer fees and annual fees
  
• Access to a FICO credit score for free

The amount of interest you can save is highly dependent on the duration of the balance transfer offer, the interest rate you pay on your existing debt, and how much debt you have to repay. That said, most people will find that a 0% balance transfer offer can save them hundreds, if not thousands of dollars in interest compared to a balance carried at an ordinary double-digit APR, even if there's a balance transfer fee.

Balance transfers can help you save money on interest, which can equate to helping you pay down your debt faster. That’s because your payments will be applied solely to the principal (not interest) during the 0% intro APR period.

Consider an example where you want to pay off a $5,000 balance with monthly payments of $200. The table below shows how you can save $1,130 in total interest payments and pay off the balance six months faster with a 15-month balance transfer offer.

The interest you can save by using a 0% intro APR card is easy to quantify, but there is also a lot to be said about the stress-reducing benefits of paying off a debt six months earlier. People who are in the market to buy a home or car, for example, would benefit by eliminating credit card debt before financing another large purchase.

A balance transfer credit card is not for everyone. In the right hands, a balance transfer credit card can be a powerful financial tool used to pay off debt. Used incorrectly, however, a balance transfer credit card can be used to get even deeper into debt.

If these three statements apply to you, then you are likely a good candidate for a balance transfer credit card:

• You have existing credit card debt at a high APR.
  
• You are serious about paying off your credit card debt once and for all.
  
• You won’t rack up a new balance on your old credit card after transferring the balance to a new credit card.

When it comes to 0% APR cards, shopaholics and lazy budgeters need not apply. Many people get into trouble by opening a balance transfer credit card account, moving a balance, then racking up another large balance on their old credit card at double-digit interest rates while making little to no progress paying down the balance they moved in the first place.

Savvy people use low interest balance transfer credit cards for the specific purpose of refinancing high interest credit card debt. Often, that means moving a balance to take advantage of a low or 0% intro APR, and then putting all your credit cards in your sock drawer until the transfer (and any other credit card debt) is paid off in full.

Many people overvalue a longer 0% promo APR, falsely believing that it makes sense to pay a fee for a longer 0% intro period. But in this example, the shorter promo period is actually better. That’s because transfer fees are assessed on all amounts you transfer, whereas interest is only charged on amounts that remain after the 0% intro period expires. By the time the interest kicks in on either offer, much of the debt has already been repaid!

There are four things you should look for when it comes to balance transfer cards.

• A long 0% intro APR period of at least 15 months
  
• Low or no balance transfer fee -- 3% and lower is competitive
  
• 0% APR on purchases if you plan to make purchases with the card
  
• Free access to your credit score

The best credit card for balance transfers should offer a long 0% intro APR on balance transfers and little to no fees to transfer a balance. If you plan to use the balance transfer card to make purchases, you want to find a card that offers a 0% APR on purchases, too.

A 0% intro APR on purchases is more important than you might think. Suppose you have a card with a $5,000 balance, of which $4,000 is from a 0% intro APR balance transfer, and $1,000 is from purchases you made a month after getting the card. When you receive your statement in the mail, the credit card might require you to make a minimum payment of at least $200, or 4% of your balance that month.

If you make the minimum payment of $200, all of the payment would be used to pay down the $5,000 balance transfer at a 0% APR. However, if you pay more than the minimum… say, $1,000, then $200 would be applied toward the 0% APR balance, and $800 would be applied toward the $1,000 purchase balance.

By law, credit card companies only have to apply amounts in excess of the minimum monthly payment to your highest APR balance. That means if you don’t pay an amount equal to your purchase balance and minimum payment each month, you might end up paying down your 0% intro APR balance transfer while racking up purchase debts at an 18% APR. This can be a costly mistake.

You can avoid this problem by employing one of three basic strategies:

1. Only use balance transfer cards for purchases when they offer 0% intro APRs on balance transfers and purchases for the same length of time.
   
2. If a 0% balance transfer card does not offer a 0% intro APR on purchases, don’t put purchases on the credit card until the 0% balance transfer APR expires, or until you pay off the 0% APR balance transfer.
   
3. When you make a monthly payment, pay an amount equal to your purchase balance for that statement plus the minimum payment to avoid building up a purchase balance at a high APR. If your minimum payment is $100 and your purchase balance is $500, you should pay at least $600 to avoid interest on the purchase balance.

All three of these strategies will enable you to get the full benefit of a 0% intro APR on balance transfers and avoid building up debt from purchases at high interest rates. The easiest route often makes the most sense -- transfer a balance to get a 0% promo APR and then avoid using the card for purchases until the transfer is paid off or the 0% promo APR expires.

You do not need perfect credit to qualify for a balance transfer credit card. Card issuers know that people who apply for balance transfer cards are likely to carry an existing balance with another issuer, which could have already marred your credit score. (What are balance transfers good for if not for transferring existing credit card debt?)

A good to excellent credit score (above 700) will get you access to most balance transfers on the market, including those that offer 18 months or more of 0% intro APRs. People who have fair credit (scores generally above 650) can be approved for most offers as well.

Importantly, credit scores are not the only factor issuers use to decide whether or not to approve you for a card. Your income, mortgage or rent payments, and payments due on other debts also play a role in deciding whether or not you get approved for a new balance transfer card.

When used correctly, a balance transfer can help you pay down debt faster, avoid interest on your balances, and get you back on track toward a life free of credit card debt.

As for actually using a balance transfer, there are only five things you need to do:

1. Get approved for a balance transfer card. You may receive offers from a credit card you already have, but offers for new cardholders are usually much better than the offers issuers send to existing customers.
   
2. Transfer your balances. Many card issuers allow you to transfer a balance at the time of your application, while others will require you to request a balance transfer after approval, either by phone or online.
   
3. Continue to make payments on your old card. A balance transfer can take one to two weeks to process. Continue to pay at least the minimum payment on your old credit card until you see that the balance transfer amount was deducted from your old card. There may be a small amount of interest due in the month following your balance transfer, even if you move your whole balance, so it’s a good idea to check back after the balance transfer is complete so that you don’t get slapped with a massive late fee for failing to pay a few dollars in remaining interest.
   
4. Pay down your balances as fast as you can. A 0% intro APR or low interest rate on a balance transfer offer won’t last forever, so it’s imperative that you use the promo period wisely. If your card doesn’t offer the same promotional terms on purchases, consider using it solely for the balance transfer to avoid piling up debt at a higher purchase APR.

Avoid the temptation to rack up new balances. Transferring a balance to a credit card frees up capacity on another credit card. If you have a tendency to overspend, it may be smart to avoid credit cards altogether while you pay down that existing credit card debt.

Here are the best balance-transfer credit cards