10 best balance transfer credit cards: Consolidate your bills and save on interest

Of course, there are hundreds of credit cards on the market, and some are much better than others. So to help you narrow your options, the Fortune Recommends^TM team evaluated more than 30 balance transfer credit cards available today and ranked them based on factors such as introductory period, annual percentage rate (APR), rewards structure, consumer benefits, and more.

See our full methodology here. All interest rates, terms, and fees are subject to change.

Why trust Fortune Recommends

Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. Read more about our editorial guidelines and the credit card methodology for the ratings below.

• Over a dozen balance transfer cards tested by staff
• Over 30 cards considered
• Over a half century of industry experience
• 4 levels of fact checking

Best balance transfer credit cards of September 2024

• Best overall balance transfer card: U.S. Bank Visa® Platinum Card
• Best for no fees: Citi Simplicity® Card
• Best for fair credit: Citi® Double Cash Card
• Best for post-balance transfer APR: BankAmericard®
• Best for cash back: Chase Freedom Flex℠
• Best for interest rate reduction: Chase Slate Edge℠
• Best for travel and consumer protections: Chase Freedom Unlimited® Credit Card
• Best for travel rewards: Amex EveryDay® Credit Card
• Best for choose-your-own-adventure: Bank of America® Customized Cash Rewards Credit Card
• Best for Preferred Rewards members: Bank of America^® Unlimited Cash Rewards

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Best overall balance transfer card:  U.S. Bank Visa® Platinum Card

The U.S. Bank Visa® Platinum Card is particularly well-suited for those looking to consolidate and pay down debt over an extended period without the burden of additional interest.

Why we like the U.S. Bank Visa Platinum Card as the best overall balance transfer card  

The U.S. Bank Visa® Platinum Card features an exceptionally long 0% intro APR on purchases and balance transfers† for 21 billing cycles. After that, the APR is variable, 18.74%–29.74%. Balance transfers also include a fee or 5% of the amount of each transfer or $5 minimum, whichever is greater.

This card also comes with a few additional perks, including up to a $600 reimbursement if your cell phone is stolen or damaged when you pay your monthly cell phone bill with your card. Plus, there’s a $0 annual fee, making the U.S. Bank Visa® Platinum Card an economical choice for cardholders looking to minimize their debt.

The card’s primary drawback is that it doesn’t offer rewards of any kind, including no welcome offer. If you want a balance transfer card that offers value long after the promotional APR expires, this one may not be the right fit for you.

For more info check out our U.S. Bank Visa Platinum Card review.

U.S. Bank Visa Platinum benefits

• Pay eligible purchases over time with ExtendPay (no fee on plans opened in the first 60 days)
• Up to $600 in cell phone protection
• Free access to your VantageScore credit score
• Identity theft protection tools
• Option to choose your payment due date

Best for no fees: Citi Simplicity® Card

With no annual fee, late fees, or penalty APR, the Citi Simplicity® Card stands out as a consumer-friendly option.

Why we like the Citi Simplicity card as the best for no fees

The Citi Simplicity® Credit Card is another card offering 0% APR for 21 months from the date of first transfer (transfers must be completed within four months from the date of account opening)—and a 0% intro APR for 12 months. 

• The balance transfer fee is 3% of each transfer (minimum $5) completed within the first 4 months of account opening; 5% balance transfer fee ($5 minimum) applies if completed after 4 months of account opening. 
• Once the intro period is over, the APR reverts to a variable 19.24%–29.99%, depending on creditworthiness.

Aside from the impressive balance transfer intro offer, the card doesn’t impose late fees or penalty rates, a rare and valuable feature. There is also a $0 annual fee.

Like the U.S. Bank Visa Platinum Card, however, the Citi Simplicity doesn’t offer rewards of any kind. It also offers a shorter APR promotion for purchases, which could cause problems if you plan to use the card for everyday purchases while paying down your balance transfer. 

For more details see our Citi Simplicity review.

Citi Simplicity card benefits

• No late fees 
• No penalty APR
• Identity theft protection program
• Option to choose your payment due date

Best for fair credit: Citi® Double Cash Card

The Citi® Double Cash Card is ideal for those who want a straightforward rewards program without the need to track spending categories or sign up for quarterly bonuses—and without the need for excellent credit to qualify.

Why we like the Citi Double Cash Card as the best for fair credit scores 

The Citi® Double Cash Credit Card offers a generous 0% intro APR on balance transfers for 18 months (after that, the variable APR will be 19.24%–29.24%, based on your creditworthiness). 

• The balance transfer fee is 3% of each transfer (minimum $5) completed within the first four months of account opening. After that, the fee will be 5% of each transfer (minimum $5). 
• Once the intro period is over, the APR reverts to a variable 19.24%–29.24% variable, depending on creditworthiness.

Additionally, the Citi Double Cash card provides 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. There are no category restrictions or enrollment required, and there is no limit on the amount of cash back you can earn. For a limited time card holders also earn 5% total cash back on hotel and car rentals booked on the Citi Travel℠ portal through 12/31/24.

New cardholders also have the opportunity to earn $200 cash back when you spend $1,500 on purchases within the first 6 months. Plus, the card offers additional perks such as 24-hour fraud protection with a $0 annual fee.

The most glaring issue with the Double Cash Card is that it doesn’t offer a 0% APR promotion on new purchases. As a result, it’s best to avoid using the card for everyday expenses until after you pay down your balance transfer to avoid interest charges—purchases don’t qualify for the standard grace period until your balance transfer is paid in full.

For more info check out our Citi Double Cash Card review.

Citi ThankYou points

While the Citi Double Cash Card is billed as a cash-back card, you’re technically earning ThankYou points, which open up some additional redemption opportunities that many cash-back cards don’t offer.

In addition to requesting cash back, you can also buy gift cards, book travel or shop with points at Amazon.com. You’ll also have access to a few of the program’s transfer partners, including Choice Privileges, JetBlue TrueBlue and Wyndham Rewards. Just keep in mind that the transfer ratios are less favorable compared to other eligible ThankYou rewards credit cards.

If you want access to more transfer partners and better transfer ratios, you can combine points earned with the Double Cash Card with the Citi Strata Premier℠ Card. 

Citi Double Cash card benefits

• Special access to presale tickets and exclusive experiences through Citi Entertainment
• Identity theft protection program

Best for post-balance transfer APR: BankAmericard®

The BankAmericard® is an excellent choice for those who want a card with a long 0% APR period for both purchases and balance transfers, plus a reasonable APR once the intro period is over.

Why we like the BankAmericard as the best for low ongoing APR 

The BankAmericard offers a valuable introductory 0% APR for the first 18 billing cycles on purchases, as well as balance transfers made within 60 days of opening your account. After the intro APR offer ends, a variable APR of 16.24%–26.24% applies, depending on creditworthiness. A 3% fee applies to all balance transfers.

Despite its lack of an annual fee, cardholders also enjoy several valuable perks, including free access to their TransUnion FICO score and optional overdraft protection for an eligible Bank of America checking account.

Like some of the other cards on our list, however, the BankAmericard doesn’t offer rewards of any kind, limiting its long-term value after the promotional 0% APR period ends. 

For more detail see our BankAmericard review.

BankAmericard benefits

• No penalty APR
• Free access to your FICO credit score
• Balance Connect for overdraft protection

Best for interest rate reduction: Chase Slate Edge℠

The Chase Slate Edge℠ credit card rewards responsible cardholders who pay their bills on time with the chance to get a lower rate and higher limit, automatically.

Why we like the Chase Slate Edge as best for interest rate reduction

The Chase Slate Edge offers a generous introductory 0% for the first 18 months (after that, the variable APR will be 20.49%–29.24% variable). All balance transfers will have a balance transfer fee of 3% (or $5, whichever is higher) only for the first 60 days, after which it jumps to 5% (or $5, whichever is higher).

Another feature unique to the Chase Slate Edge is the opportunity to lower your ongoing interest rate. Chase will consider users for a 2% APR reduction when they pay on time and spend at least $1,000 on the card before their next account anniversary (until APR reaches the Prime Rate, plus 9.74%). The card also includes the potential for an automatic credit line increase after spending $500 in the first six months and making all payments on time. 

Finally, the Chase Slate Edge comes with a number of perks and protections, including purchase protection and rental car coverage—all with a $0 annual fee.

With such a long 0% APR promotion, however, it’s not surprising that the Slate Edge doesn’t offer a welcome bonus or rewards. If you want a card that also offers rewards, consider some of our other top choices.

For more detail see our Chase Slate Edge review.

Chase Slate Edge benefits

• Lower your interest rate by 2% each year when you pay on time and spend at least $1,000
• Automatic review for a credit line increase when you pay on time and spend $500 in your first six months
• Complimentary three-month DoorDash DashPass subscription, followed by 50% off for the next nine months when you activate by Dec. 31, 2027
• Pay off eligible purchases over time with Chase Pay Over Time
• Free access to your VantageScore credit score through Chase Credit Journey
• Auto rental collision damage waiver
• Purchase protection
• Extended warranty protection
• Roadside dispatch

Best for cash back: Chase Freedom Flex℠

The Chase Freedom Flex℠ is an excellent option for those seeking high cash back rates and a diverse rewards program.

Why we like the Chase Freedom Flex Card as best for cash back 

The Chase Freedom Flex℠ provides an impressive introductory 0% intro purchase APR for 15 months from account opening (after that, the variable APR will be 20.49%–29.24%). All balance transfers have a fee of $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that: Either $5 or 5% of the amount of each transfer, whichever is greater..

This card also allows cardholders to earn cash back on their spending:

• 5% cash back on travel purchased through Chase Ultimate Rewards
• 3% cash back on dining (including restaurants, takeout and eligible delivery services)
• 3% cash back on drugstore purchases
• 1% cash back on all other purchases
• 5% cash back on Lyft rides (through March 2025)

Each quarter, you can also earn 5% cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1%).

New cardholders can also earn a $200 cash bonus after spending $500 on purchases within your first three months. Plus, earn 5% cash back on combined gas station and grocery store purchases (excluding Target and Walmart) on up to $12,000 spent in the first year.

For more details see our Chase Freedom Flex review. 

Chase Ultimate Rewards

The Chase Ultimate Rewards program is one of the best rewards programs available, though you won’t get access to its full potential with the Chase Freedom Flex alone—more on that in a minute.

With the Freedom Flex, you’ll get the following redemption options:

• Statement credit
• Direct deposit into most U.S. checking and savings accounts
• Gift cards
• Travel
• Shop with points at Amazon.com
• Buy Apple products
• Order takeout, find exclusive reservations or book culinary experiences with Chase Dining

Keep in mind, though, that some redemption options, including shopping online with Amazon.com or PayPal, may give you a reduced redemption rate. Points don’t expire as long as your account remains open and in good standing.

The program also allows eligible cardholders to transfer their rewards to several airline and hotel loyalty programs. To get access to transfer options, however, you’ll also need to have the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card.

How to combine Chase Ultimate Rewards points

To make the most of what the Ultimate Rewards program has to offer, Chase allows you to combine points earned with different Ultimate Rewards credit cards. 

For example, you can transfer rewards earned with the Freedom Flex or the Chase Freedom Unlimited® to the Sapphire Preferred, Sapphire Reserve and Ink Business Preferred and get bonus value on travel redemptions and access to transfer partners.

To combine points between two cards, simply log in to your account and visit the rewards page. It’ll be listed as an option under the “Rewards details” drop-down menu. 

Learn more: Better together: How to use the Freedom Flex and Chase Sapphire Preferred for maximum rewards

What is the Chase Trifecta?

The Chase trifecta is a set of three Ultimate Rewards credit cards that allow you to maximize your earning power on everyday spending and the value of your redemptions.

Two of the three cards—the Freedom Flex and the Freedom Unlimited—offer excellent cash-back opportunities. The third card can be flexible, with some people recommending the Sapphire Preferred or the Sapphire Reserve, depending on how frequently you travel and your budget for an annual fee. 

If you’re a small business owner, you could also use the Ink Business Preferred as your third card.  

Chase Freedom Flex card benefits

• Complimentary three-month DoorDash DashPass subscription, followed by 50% off for the next nine months when you activate by Dec. 31, 2027
• Pay off eligible purchases over time with Chase Pay Over Time
• Free access to your VantageScore credit score through Chase Credit Journey
• Trip cancellation and interruption insurance
• Up to $800 in cell phone protection
• Auto rental collision damage waiver
• Purchase protection
• Extended warranty protection
• Travel and emergency assistance services

Best for travel and consumer protections: Chase Freedom Unlimited®

In addition to a lengthy introductory APR period and generous rewards program, the Chase Freedom Unlimited® also offers a host of valuable protections such as purchase protection and trip cancellation/interruption insurance.

Why we like the Chase Freedom Unlimited card as the best for travel and consumer protections 

The Chase Freedom Unlimited® offers a competitive 15-month 0% intro APR period on purchases and balance transfers (then 20.49%–29.24% variable APR). All balance transfers made within the first 60 days of account opening incur a fee of $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that: Either $5 or 5% of the amount of each transfer, whichever is greater..

The Chase Freedom Unlimited offers a similar rewards structure to the Freedom Flex, with a slightly higher base cash back rate:

• 6.5% on travel purchased through Chase Travel℠
• 4.5% cash back on dining including takeout and eligible delivery service
• 4.5% cash back on drugstore purchases
• 3% cash back on all eligible purchases (on up to $20,000 spent in the first year)
• 5% cash back on Lyft purchases (through March 2025)

Additionally, new cardholders can earn a $200 after you spend $500 in the first 3 months from account opening. 

Despite its lack of an annual fee, the Chase Freedom Unlimited card also comes with several consumer and travel benefits, including purchase protection, extended warranty protection, cell phone insurance, trip cancellation/interruption insurance, and auto rental collision damage waiver. 

Cardholders get a complimentary three months of DashPass, and are then automatically enrolled in DashPass at 50% off for the next nine months when activated by December 31, 2027. 

To learn more see our Chase Freedom Unlimited review.

Chase Freedom Unlimited Card benefits

• Complimentary three-month DoorDash DashPass subscription, followed by 50% off for the next nine months when you activate by Dec. 31, 2027
• Pay off eligible purchases over time with Chase Pay Over Time
• Free access to your VantageScore credit score through Chase Credit Journey
• Trip cancellation and interruption insurance
• Auto rental collision damage waiver
• Purchase protection
• Extended warranty protection
• Travel and emergency assistance services

Best for travel rewards: Amex EveryDay® Credit Card

The Amex EveryDay® Credit Card is particularly well-suited for regular shoppers, especially those who spend a lot on groceries, as well as frequent travelers.

Why we like the Amex EveryDay card as best for travel rewards 

The Amex Everyday card comes with a 0% introductory APR on purchases and balance transfers for 15 months from the date of account opening, then a variable APR of 18.24% to 29.24%, depending on creditworthiness. All balance transfers incur a fee of $5 or 3% of the amount of each transfer, whichever is greater.

This card also offers a straightforward rewards program: 

• 2X points per dollar on U.S. supermarket purchases ($6,000 limit on purchases per year, 1% thereafter)
• 2X points on every dollar of eligible travel purchases booked through AmexTravel.com.
• 1X points per dollar on all other purchases. Further, you get a 20% bonus when you make 20+ purchases in a billing cycle.

New cardholders can earn an extra 10,000 points if you spend $1,000 in first 3 months (Terms apply). Membership Rewards are valuable due to their flexibility as they can be transferred to over a dozen travel partners. But if you don’t use points for travel, the points are worth less than a penny each. 

Plus, the Everyday card comes with added travel protections such as car rental loss and damage insurance and a Global Assist hotline.

For more detail, see our Amex Everyday review.

American Express Membership Rewards

The American Express Membership Rewards program offers flexible redemption options, but you won’t get as much redemption value compared to other rewards programs.

If you redeem them directly with Amex, your options include travel, statement credits, gift cards and online shopping. Flights, Fine Hotels & Resorts stays and select gift cards offer 1 cent per point, but in most cases, you’ll get between 0.5 and 0.85 cents per point. You can use the card issuer’s points calculator to get an idea of what to expect.

Fortunately, Amex also allows you to transfer your points to several airline and hotel loyalty program partners, which can give you more opportunities to maximize your rewards. Its list of partners mostly features international airlines, but there are some domestic options.

Note, however, that there is an excise tax offset fee on domestic airline points transfers, costing you $0.0006 per point transferred, with a $99 maximum. You can use points to cover the cost at a rate of 0.5 cents apiece.

If you have multiple credit cards that earn Membership Rewards points, Amex automatically pools your rewards, so you don’t have to do it manually. Points don’t expire as long as your account remains open and in good standing.

Amex Everyday Card benefits

• Split money and split purchases with other PayPal and Venmo users directly in the Amex mobile app
• Access to presale tickets and exclusive events through American Express Experiences
• Pay off eligible purchases over time with a fixed fee with Plan It
• Earn extra rewards with Amex Offers
• Car rental loss and damage insurance
• Purchase protection

Best for choose-your-own-adventure: Bank of America® Customized Cash Rewards Credit Card

The Bank of America® Customized Cash Rewards Credit Card is ideal for those looking for flexible reward options, especially in categories where they spend the most, along with additional perks and a competitive sign-up bonus, all without an annual fee.

Why we like the Bank of America Customized Cash card as the best for category choices 

The Bank of America® Customized Cash Rewards Credit Card offers a 0% intro APR for 15 billing cycles for purchases, and a 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee applies. After the intro period ends, a variable APR of 18.24%–28.24% variable , depending on creditworthiness. A 3% fee also applies to all balance transfers.

This card also stands out for its competitive cash back rewards. First, you choose which category you want to earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases). This selection can be changed in the future.

You also automatically earn 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and an unlimited 1% on all other purchases. Note that you earn 3% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. Preferred Rewards members earn 25% to 75% more cash back on every purchase.

Additionally, new cardholders can earn an online $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

For more details about the Customized Cash Card, see our review.

Bank of America Customized Cash Benefits

• Free access to your FICO credit score
• Balance Connect for overdraft protection

Best for Preferred Rewards members: Bank of America^® Unlimited Cash Rewards

The Bank of America^® Unlimited Cash Rewards is a compelling option for those looking for a straightforward, no-annual-fee cash back credit card—especially for Bank of America Preferred Rewards members who can maximize their cash back returns.

Why we like the Bank of America Unlimited Cash as the best for Preferred Rewards members

Like the Customized Cash Rewards card, the Unlimited Cash Rewards card from Bank of America offers a 0% Intro APR for 15 billing cycles for purchases, and 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee applies. After the intro period ends, an APR of 18.24%–28.24% variable applies, depending on creditworthiness. A 3% fee also applies to all balance transfers.

However, these cards differ when it comes to their rewards. The Bank of America Customized Cash Rewards card provides unlimited 1.5% cash back on all purchases. There’s no limit to the amount of cash back you can earn and cash rewards don’t expire. 

Preferred Rewards members earn 25%-75% more cash back on every purchase, which translates to a cash back rate of 1.87% to 2.62%. Members of the Bank of America Preferred Rewards program enjoy many other exclusive benefits and pricing discounts as well.

Currently, new cardholders can also earn an online $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of account opening.

For more info see our Unlimited Cash card review.

Bank of America Preferred Rewards

Bank of America’s Preferred Rewards program offers a lot of value to loyal bank customers. In addition to earning 25% to 75% more rewards on your Bank of America credit cards, you could also enjoy the following:

• An interest rate booster on your savings account
• Fee waivers for select banking services
• Interest rate discounts on auto loans and home equity lines of credit
• Reduced mortgage origination fee
• Program fee discount for Merrill Guided Investing

To qualify for the Preferred Rewards program, you need a three-month combined average daily balance of at least $20,000 across qualifying Bank of America deposit accounts and Merrill Lynch investment accounts. 

The program has four tiers, with additional benefits when you reach $50,000, $100,000 and $1 million in eligible balances.  

Bank of America Unlimited Cash benefits

• Free access to your FICO credit score
• Balance Connect for overdraft protection

What is a balance transfer?

A balance transfer involves moving the outstanding balance from one or more credit cards to another credit card, usually with a lower interest rate. In order to attract new business, some cards may even offer an introductory 0% APR on balance transfers. Cardholders generally choose to transfer a balance in order to consolidate high-interest credit card debt and reduce the amount of interest being accrued, allowing them to save money and pay off the balance faster.

In order to attract new business, some cards offer an introductory 0% APR promotion on balance transfers. However, some card issuers may also offer balance transfer deals to existing customers. You may be able to request one through your online account, or your card issuer may send you balance transfer checks in the mail that you can use.

It’s important to note that credit card issuers typically don’t accept balance transfer requests unless the card you’re transferring from is issued by another financial institution. For example, if you have debt on a Chase credit card, you likely won’t be able to transfer it to another Chase card.

Learn more about how balance transfers work.

What is the difference between 0% APR on purchases and a balance transfer?

A balance transfer happens when you take the balance from a higher-interest loan and transfer it to a card with a lower interest rate. 0% APR on purchases allows you to finance a large purchase for a longer period of time without interest. If you are looking to make a large purchase, check out our list of Best 0% APR cards.

How much does it cost to do a balance transfer? 

Most credit card issuers charge a balance transfer fee that typically ranges from 3% to 5% of the amount being transferred. For instance, if you transfer $10,000 and the fee is 3%, you would pay a one-time cost of $300. The balance transfer fee is typically added to your new balance.

Also, keep in mind that while some balance transfer credit cards offer a 0% introductory APR for a set period (usually around 12 to 21 months), if you don’t pay off the transferred balance within that period, you will start accruing interest on the remaining balance at the card’s standard rate. This is in contrast to retail promotional financing offers, which may charge you interest retroactively based on the original balance if you don’t pay it in full.

Before transferring a balance to a new card, be sure to check the fee and APR for balance transfers and understand how long the promotional rate applies.

Are balance transfers free?

You can generally expect to pay an upfront fee of 3% to 5% of the transferred amount, especially if the promotional APR is 0%. 

That said, some credit card issuers may occasionally offer fee-free balance transfers, though you may get a low APR instead of a 0% APR during the promotional period.

Can you get a balance transfer card with bad credit?

For the most part, balance transfer credit cards are designed for people with good or excellent credit. In some cases, you may be able to get approved with fair credit, but these cards are generally inaccessible to people with bad credit. 

Here’s a quick look at FICO credit score ranges to give you an idea of where you stand:

Ways to pay off credit card debt with bad credit

If your credit situation makes it difficult to qualify for a balance transfer credit card or a consolidation loan, here are a couple of other approaches you can take to tackle your credit card debt.

Accelerated debt repayment strategies

If you have multiple credit card balances and can afford to put some extra cash toward your debt each month, consider using the debt snowball or avalanche method to speed up the process.  

With the debt snowball, you’ll apply any additional payments you can afford to your smallest balance, while making just the minimum payment on all other debts. Once you’ve paid off that balance, you’ll take the total amount you were putting toward it and add it to the minimum payment on the next-smallest balance. You’ll keep doing this until you’ve eliminated all of your debts.

The debt avalanche method works similarly, but instead of targeting your smallest balances, it focuses on your balances with the highest interest rates. The avalanche approach may help you save more money on interest charges, while the debt snowball can give you quick wins early on and help keep you motivated.

Credit counseling

A credit counselor can provide you with free advice on budgeting, debt management and other basic financial needs. If you’re struggling to keep up with your payments, they may also suggest a debt management plan (DMP).

With a DMP, the credit counseling agency can negotiate lower interest rates and monthly payments with your credit card companies. You’ll then make a single payment to the agency, which will distribute the funds to each of your creditors. 

DMPs typically last three to five years and come with modest upfront and ongoing fees. You’ll also typically need to close your credit card accounts, which can cause your credit utilization rate to spike, damaging your credit score. But as you pay down the debt over time, a DMP can ultimately help you improve your credit score. 

How to improve your credit to qualify for a balance transfer card

If your credit score needs some work, here are some steps you can take to increase it and improve your odds of scoring a balance transfer offer:

• Review your credit reports: Your credit reports provide the data to calculate your credit score, so reading them can help you get an idea of where to start. You can get a free weekly copy of your reports from Experian, Equifax and TransUnion through AnnualCreditReport.com.
  
• Dispute inaccurate credit information: If you find inaccurate or fraudulent information on your credit reports, you have the right to dispute it with the credit bureaus. The process looks a little different for each one, so visit their websites to learn more about how to proceed. The dispute process is typically resolved within 30 days.
  
• Pay on time: Your payment history is the most influential factor in your credit score, so it’s crucial that you always pay your bills on time. If you’ve fallen behind on payments, getting caught up can prevent further damage to your score.
  
• Pay down your credit card balances: Do what you can to reduce your credit utilization rate on your own. Because it’s updated every time your card issuers report your monthly balance, you could see relatively quick improvements with this approach.
  
• Get added as an authorized user: If you have a family member or friend who uses their credit card responsibly—meaning they pay on time every month and maintain a low utilization rate—consider asking them to add you as an authorized user on the account. Once they do, the entire history of the account will be added to your credit reports, helping boost your score.
  
• Add other positive payment history: Some services, including Self Financial, allow you to add rent payments to all three credit reports at no cost. In addition to rent payments, Experian Boost also allows you to add cell phone, utility, insurance and eligible streaming subscription payments, but only to your Experian credit file. 

As you evaluate your credit reports, take time to focus on a strategy that works best for you and your credit situation.

What are the pros and cons of balance transfers?

Before you choose to do a balance transfer, it’s important to understand both the benefits and drawbacks. Here’s what to consider.

Pros

• Interest savings: The average interest rate for credit cards that assess interest is 22.76%, according to May 2024 data from the Federal Reserve. With no interest rate for a year or longer on a balance transfer card, you could save hundreds of dollars on interest charges. 
  
• Faster payoff: With no interest charges, all of your monthly payments will go toward paying down your balance and the upfront fee, making it possible to pay off your credit card debt months ahead of your original schedule.
  
• Can simplify payments: If you have multiple credit card balances, a balance transfer card can combine all of your monthly payments into one, simplifying your repayment plan.

Cons

• Upfront fee: While you can skip interest for several months, balance transfers typically aren’t entirely free. When evaluating your options, be sure to account for the cost of the balance transfer fee.
  
• There are no guarantees: Even if you have good credit, there’s no guarantee that you’ll qualify for a balance transfer card. What’s more, the amount you can transfer is based on the credit limit you qualify for. Some card issuers even set a hard limit, which could impact your ability to include all of your debt.   
  
• Doesn’t solve the core problem: A balance transfer credit card can be worthwhile if you’re taking steps to change your spending habits. But if you’re not committed to paying off the debt within the promotional period and avoiding new debt, it could ultimately exacerbate your problems instead of fixing them.

When should you do a balance transfer? 

If you have high-interest credit card debt, transferring the balance to a card with a lower interest rate can save you money. It also makes it easier to pay off your debt faster since 100% of your payments go toward the principal balance. 

If you find a credit card offering an introductory 0% APR on balance transfers, this can be a great opportunity to pay down your debt without accruing additional interest during the promotional period.

With that said, here are some situations where it could make sense to consider a balance transfer:

• You have fair credit or better
• You expect to need a year or longer to pay off your credit card debt
• You’ve run the numbers and can save money after the balance transfer fee
• You’re motivated to pay off your debt within the promotional period
• You have a plan to cut your spending and avoid adding more debt to your original cards

On the flip side, a balance transfer may not be the right move in the following scenarios: 

• Your credit is in poor shape
• You can pay off the debt within a few months without a balance transfer card
• Your potential savings will be minimal after accounting for the balance transfer fee
• You’ve struggled to stick to a debt repayment plan
• You’re unsure about your ability to cut down on overspending

How do you decide if a balance transfer is right for you?

As you consider your debt situation and your financial goals, here are some factors to consider to determine whether a balance transfer credit card is the right move for you:

• Your credit score: Again, most balance transfer cards require good or excellent credit, though some may be accessible with fair credit. Check your credit score to get a better idea of your options.
  
• Your budget: A balance transfer credit card is best suited for people who can afford to pay off the debt before the promotional APR expires. If your budget is tight or you’ve already started falling behind on payments, you may want to consider credit counseling instead.
  
• Your balances: If you have tens of thousands of dollars in credit card debt, you may have a hard time getting a credit limit that’s high enough to cover all of it. In this scenario, you could use a balance transfer card for some of your debt and other debt payoff strategies for the rest. On the flip side, if you only have a couple thousand dollars in debt, the potential savings could be minimal, especially if you can pay it off within a handful of months.
  
• Your motivation to pay off debt: Paying no interest for up to 21 months is an excellent deal, but if you get complacent, you could still have a sizable balance when the promotional period ends. If you need a more structured repayment plan to stick to your goal, consider a debt consolidation loan.
  
• Your spending habits: If using a balance transfer would tempt you to rack up more debt on the original cards, proceeding could make matters worse. However, if you have concrete plans to change your spending habits and avoid debt, a balance transfer can be a great tool to help you improve your financial well-being.

How do you do a balance transfer?

Start by comparing your options. If you have an existing card with a low balance that offers a 0% APR balance transfer promotion, you may not need to apply for a new card. If you don’t have that option, however, use our list of the best balance transfer credit cards as a starting point to find a new card.

Key factors to consider include:

• Credit score requirements
• The length of the introductory 0% APR period
• The regular APR after the introductory period ends
• Balance transfer fee
• Other card benefits, such as rewards, a welcome bonus and ancillary perks

Once you’ve chosen a card that fits your needs, you can apply for it. In some cases, you can submit a balance transfer request directly in the application. However, if that’s not an option, or you want to confirm the card’s credit limit before you make your decision, you may have a few different options for submitting your request:

• Call the number on the back of your card
• Log in to your online account and request a transfer 
• Use balance transfer checks provided by your card issuer

In every case, you’ll typically need to provide the account numbers for the cards you want to pay off, as well as the amount you want to transfer for each one. 

Note that some cards may require you to submit your request within a set period of time after you open your account—usually within four months or less.

Do balance transfers hurt your credit score?

There are a few different ways balance transfers can impact your credit score for better or worse:

• Payment history: If a balance transfer makes it easy for you to pay your bills on time, it can help you avoid late payments that could wreak havoc on your credit score.
  
• Credit utilization: Your credit utilization rate is the percentage of available credit you’re using on a given card. If moving debt from one card to another results in a higher utilization rate on the new card, for instance, it could damage your credit score. On the flip side, a lower utilization rate could improve your credit. Even if the utilization rate is higher, your credit score will bounce back as you pay down the new balance.
  
• New credit: If you open a new credit card to perform a balance transfer, your credit score will be impacted in a couple of ways. For starters, you’ll likely incur a hard inquiry on one or more of your credit reports, which can knock a few points off your credit score. 
• Average account age: Opening a new account will also reduce your average age of accounts, which can negatively affect your credit. In both cases, however, the impact is typically minimal and temporary in nature.
  

Regardless of how a balance transfer affects your credit in the short term, the financial benefits can outweigh the negatives. As long as you continue to practice good credit habits, it’ll be easy to build and maintain a good credit history over time.

What’s the difference between a balance transfer card and a rewards card?

Credit cards can offer a wide variety of benefits, including rewards and balance transfer promotions. As a result, there’s no clear line between balance transfer cards and rewards cards because some rewards cards offer balance transfer promotions and vice versa. 

That said, most rewards credit cards don’t offer a balance transfer promotion to new cardholders, and there are some balance transfer cards that don’t offer rewards of any kind. If you want to enjoy the best of both worlds, your best bet is typically a cash-back credit card. 

Should you choose a balance transfer card or rewards card?

Some rewards credit cards offer balance transfer promotions, so you may not necessarily need to choose one or the other. 

That said, the balance transfer cards that offer the longest 0% APR promotions usually don’t offer rewards, so you may need to consider your situation and goals to decide which features you want. 

For example, if you have a significant amount of high-interest debt, foregoing rewards with a longer balance transfer promotion can pay off in the form of better interest savings. However, if you think you can pay off the debt within 12 to 15 months, a rewards card with a balance transfer promotion could offer more long-term value. 

What happens if you don’t pay off a balance transfer in time?

Balance transfer credit cards typically offer true 0% APR promotions, which means that any remaining balance at the end of the promotional period will be subject to the card’s regular balance transfer APR. While that’s not ideal, it could still help you save money.

It’s important to note, however, that if you miss a payment during your balance transfer promotion, your card issuer could revoke your promotional APR early. 

Also, note that until you pay off your transferred balance, any new purchases you put on the card will start accruing interest immediately—you won’t get the standard grace period—unless you also have a 0% APR promotion on purchases.

What’s the difference between a 0% APR balance transfer and a 0% APR credit card?

The terms 0% APR balance transfer and 0% APR credit card are often used interchangeably, but there are some subtle differences to keep in mind.

For starters, some 0% APR credit cards may offer a promotional rate on both purchases and balance transfers, while others may only offer the promotion on new purchases. The opposite is true for balance transfer cards—while many also offer a 0% APR on purchases, that isn’t always the case. 

Should you get a 0% balance transfer card or a 0% APR card?

The decision between a balance transfer card and a 0% APR card should be an easy one because it’s ultimately based on your needs.

If you have high-interest debt you want to pay down, make sure the card you choose has a promotional APR for balance transfers. In contrast, if you have one or more upcoming expenses you can’t afford to pay off quickly, you’ll want a 0% APR card with a promotional rate on purchases.

Fortunately, many cards in both categories won’t make you choose because they offer promotional APRs on both purchases and balance transfers. 

Frequently Asked Questions

Do balance transfers hurt your credit score?

A balance transfer itself should have a negligible impact on your credit score. However, if you continually open new credit cards and transfer debt around without paying it down, your score can be harmed in the long run.

Is a balance transfer ever a good idea?

A balance transfer can be a good idea if you have a high-interest credit card with a significant balance. Transferring the balance to a new card with a low or 0% APR can help you pay down the debt faster without the added burden of accrued interest.

Is there a catch to balance transfer cards?

There is no catch with balance transfers, but there are a couple of important points to be aware of. The first is that in most cases, you’ll be required to pay a fee of around 3% to 5% when you transfer a balance. However, this fee is usually worth the interest savings. Second, you should pay off your entire balance before the introductory APR is over, otherwise you will start accumulating interest at the regular purchase rate.

Our methodology 

To bring you our top picks for the best cash back credit cards, the Fortune Recommends team compared more than 30 balance transfer cards available from major issuers. 

We ranked each account in these six core categories: 

• Introductory 0% APR balance transfer term (60%): The most heavily weighted factor in our rankings was the length of time that the introductory 0% APR on balance transfers lasts.
• Balance transfer fee (5%): This is the one-time fee associated with each balance transfer. We only considered cards with a balance transfer fee of 3% or less.
• Maximum APR on purchases and balance transfers (10%): To ensure cardholders with an existing balance once the intro period is over aren’t burdened by excessive interest rates, we considered the maximum APR each card charges for balance transfers and purchases.
• Rewards (10%): Cards that also provide rewards (such as cash back or points) on spending were given a boost in our rankings.
• Welcome bonus (5%): It’s common for credit card issuers to entice new customers by offering a bonus when they spend a certain amount of money within a few months after opening an account. Cards that include a welcome bonus were favored in our rankings.   
• Consumer benefits (10%): Cards were awarded 0–5 points based on which consumer benefits/protections were included: purchase protection, extended warranty, cell phone insurance, car rental coverage, and trip cancellation/interruption insurance.

Keep in mind that the interest rates, balance transfer terms, and fee structures for the cards mentioned are available for limited periods and subject to change. 

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Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.