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- Balance transfer credit cards don't make debt go away on their own, but they do let consumers pay off debt with 0% APR for a limited time.
- If you're considering a balance transfer, first determine how much debt you need to transfer. Then, compare balance transfer card offers to find one that suits you.
- After you've opened a balance transfer card and moved over your debt from other cards, monitor your old accounts to make sure everything's been transferred correctly.
- Read Insider's guide to the best balance transfer credit cards.
Credit card debt in the US rose by $46 billion in the second quarter of 2022 as credit card annual percentage rates (APRs) have gone sky-high. The average credit card interest rate was 18.43% in the third quarter of 2022, according to Federal Reserve data.
A rate that high (or higher) can make debt repayment seem impossible, since so much of your payment goes toward interest charges every month. With that in mind, it's no wonder that balance transfer credit cards have become so popular. This type of card extends consumers a 0% APR for a limited period of time, sometimes up to 21 months.
While there is some fine print to sort through, consumers who take advantage of these 0% APR offers can still save hundreds — or even thousands — of dollars by avoiding interest charges during their introductory offer. These are four steps to take if you're planning to use a credit card balance transfer offer.
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Wells Fargo Reflect® Card -
Chase Freedom Unlimited®
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Chase Freedom Flex℠
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U.S. Bank Visa® Platinum Card
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Discover it® Balance Transfer
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Chase Slate Edge℠
We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
How to do a credit card balance transfer
If you have high-interest debt lingering and you're ready to destroy it, there are some steps you can take now. Here's everything you need to do to facilitate a balance transfer to a 0% APR credit card.
Figure out how much debt you want to transfer
First, take a few minutes to look over your credit card and loan statements to determine how much debt you have to transfer.
You can typically transfer several debts to your new balance transfer credit card provided the new credit limit you qualify for is large enough to accommodate all your existing debts.
You'll want to prioritize the highest-interest debts you have first, particularly credit card balances with high APRs.
Also, make sure you list how much you owe and your account numbers so you can refer to this list once you're ready to transfer a balance.
In the end, you should make up a list that looks something like this:
| Debt amount | Interest rate | Credit card account number | |
| Chase Visa | $7,000 | 18% | ####124123465877 |
| Kohl's credit card | $4,200 | 17% | ####326643532543 |
| Furniture store card | $6,000 | 22% | ####352324343332 |
| Total debt | $17,200 |
Compare balance transfer cards and offers
Once you've created a list of the debts you want to transfer, you can start looking for balance transfer offers that make sense for your goals. Ideally, you'll want the longest 0% APR offer you can qualify for with the lowest fee possible.
See Insider's list of the best 0% APR credit cards »
Try not to rush into one of these offers until you're sure they make sense.
If you're stuck paying an exorbitant interest rate and looking into balance transfers, there are some general rules you should know and follow. For example:
- Balance transfer credit cards do not typically let you transfer debt from a card from the same issuer (e.g. Chase to Chase)
- Introductory offers don't last forever, and your interest rate will revert to a higher variable rate once they're done
- Balance transfer fees typically apply, which usually add up to 3% or 5% of the total debt you transfer
- The best balance transfer credit cards require good or excellent credit
There are a ton of balance transfer cards to consider, but here are some of the best offers available today:
$0: Earn rewards on purchases, long intro APR offer
The $0-annual-fee Citi® Double Cash Card combines strong rewards earning with a long 0% intro APR on balance transfers for 18 months (balance transfers must be completed within the first four months of account opening), followed by a 19.24% - 29.24% Variable APR. There's a 3% intro balance transfer fee ($5 minimum) within the first four months of account opening; after that, the balance transfer fee is 5% (minimum $5).
The card effectively earns 2% back on all purchases — 1% (1 point per dollar) when you make a purchase and another 1% (1 point per dollar) when you pay it off.
It's not currently offering new cardholders any kind of welcome bonus offer.
Review: Citi Double Cash card review
Citi® Diamond Preferred® Card: Extra-long intro APR on balance transfers
If you want one of the longest balance transfer offers available today, the Citi® Diamond Preferred® Card is an excellent option, and it doesn't charge an annual fee.
New cardholders can take advantage of a 0% intro APR on balance transfers for 21 months (transfers must be completed within four months of account opening) and on purchases for 12 months (then a 18.24% - 28.99% Variable APR applies). That can translate into massive savings on interest if you'd otherwise carry a balance on a high-interest card. Keep in mind balance transfers must be completed within the first four months of account opening, and there's a balance transfer fee of 5% of the amount you transfer over (minimum $5).
Review: Citi Diamond Preferred card review
Blue Cash Everyday® Card from American Express
Some cards offer an introductory 0% APR on balance transfers and new purchases, and the Blue Cash Everyday® Card from American Express is among the best if you also want to earn generous rewards. This card is a perfect choice for everyday expenses. It earns:
- 3% cash back on the first $6,000 spent at U.S. supermarkets each calendar year (then 1% back)
- 3% cash back at U.S. gas stations on up to $6,000 per year (then 1% back)
- 3% cash back on U.S. online retail purchases on up to $6,000 per year (then 1% back)
- 1% cash back on other purchases
Cash back is received in the form of Reward Dollars that can be redeemed as statement credits.
New cardholders can take advantage of a 0% intro APR on purchases and balance transfers for 15 months from account opening, followed by a 19.24% - 29.99% Variable APR. There's also a good welcome bonus offer of $200 statement credit after you spend $2,000 in purchases on your new card in the first six months of card membership.
Review: Blue Cash Everyday Card review
Apply for a card and transfer your balances online or over the phone
Once you pick a balance transfer offer, you can go ahead and apply online. Typically, credit card applications require information such as your name, your gross annual income, your address, your employment details, your housing status, and your Social Security number.
Once you submit your application, you'll typically receive an online approval (or denial) in a matter of minutes. However, you may also have to wait for an answer via direct mail or email depending on the details in your application.
Details can vary once you're approved, and your next steps really depend on the card you apply for and how the issuer handles transfers. Some credit card issuers make it possible for you to enter the details of the debts you want to transfer online through their platforms, and they will prompt you to do so directly after you're approved. Meanwhile, others will ask you to call in with details on the debts you want to transfer.
Either way, you should take steps to start moving your high-interest debts to your new balance transfer credit card right away. After all, you'll save more money on interest if you move your debts over sooner rather than later.
Monitor your old card accounts
Most balance transfers will take five to seven days to complete. Some may take longer, however, and it's possible your card issuer will ask you to wait up to 21 days for the transfer to go through. Either way, it's crucial that you constantly monitor your accounts to ensure that the total balances were transferred over to your account, and that the amounts were correct.
However, you should also ensure that your old accounts reach a $0 balance before you stop making payments. If your balance transfer doesn't go through before your next payment is due, you'll want to make at least the minimum payment on your card to avoid a late payment and potential late fee. And since your payment history is the most important factor that makes up your FICO score, any payments made after the due date can have a dramatic negative effect on your credit score.
What to do after a balance transfer
Once your balance transfers are completed and your old credit and loan account balances are listed at $0, your work isn't done.
Remember that 0% APR offers are limited in terms of how long they last, and that your card's interest rate will eventually reset to a high variable rate. With that in mind, you should pay as much as you can toward your new credit card balance at 0% APR. While interest isn't accruing, you have an opportunity to pay down debt quickly since every dollar you pay goes directly toward the balance you owe.
Additionally, you may want to stop using credit cards while you focus on debt repayment. You could even stash your cards away in a safe or a closet for safekeeping. If you keep using credit cards to rack up more balances you can't afford to repay, you could end this experiment worse off than when you started.
For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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