Best Balance Transfer Credit Cards Methodology
Not all balance transfer cards are created equal. To generate our list of the best balance transfer cards, Forbes Advisor reviewed dozens of credit cards with balance transfer options across a broad spectrum of issuers.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates credit cards.
Key Balance Transfer Terms
- Purchase APR. This refers to the interest rate paid on new purchases when they are not paid in full by the statement date or a balance is already held, and there is no introductory purchase APR.
- Balance transfer APR. The balance transfer APR is the interest paid on debt transferred from another credit card.
- Balance transfer fee. This fee is assessed when you transfer a balance—typically 3% to 5% of the transferred amount, although there are cards with no balance transfer fees.
How To Choose a Balance Transfer Credit Card
When looking for the right balance transfer card for your circumstances, here are a few key factors to consider:
- Compare the length of the balance transfer offer. The longer the introductory APR offer, the more time you’ll have to pay off your debt before interest piles up. But the cards with the longest offers may also have higher balance transfer fees.
- Evaluate the cost of the balance transfer fee. Search for a balance transfer card with low or no balance transfer fees to minimize the cost when you do a transfer.
- Consider if you also need an intro APR on purchases. Will you be putting new charges on this card? If so, you may want to look for a card that offers a 0% intro APR on purchases, too. Several of the best balance transfer cards do, but not all.
- Assess the regular APR. If you won’t pay the full debt before your promotional period ends, it’s wise to compare the standard APR that would kick in afterward for each card you’re considering. While credit cards as a whole are considered a high-interest form of debt, some cards have lower regular APRs than others.
Also, keep in mind that banks won’t let you move debt from one of their cards to another, so you’ll need to pick a card from a different issuer than the one you’re transferring from.
Finally, you’ll want to consider the credit card’s long-term value. Some cards with balance transfer offers come with rewards and other perks, while others offer little value beyond the intro APR offer.
Balance Transfer Credit Card Eligibility
Balance transfer credit cards are frequently only available to customers who have good to excellent credit, though some cards may also approve applicants with fair credit. Here are some things that may impact your eligibility for a balance transfer card:
- Current credit score. Higher scores signal that you are more qualified.
- Current utilization rates. Using less of your currently available credit shows that you aren’t overextended.
- Current debt-to-income ratio. Issuers are looking for a good level here, so that you’ll have income or other funds available to pay down the balance.
- Payment history. A history of on-time payments is a sound indicator that you will make future payments on time also.
- Recent inquiries. Too many recent applications might make you look risky, as if you’re desperate for credit.
How To Transfer a Credit Card Balance
To transfer your credit card balance to another card:
- Review your existing debt. Determine which card(s) have a balance and the interest rate.
- Research your options. Evaluate balance transfer fees, interest rates and timelines on multiple cards to choose the best balance transfer cards with favorable terms for your situation.
- Apply for the new card. Applying for a balance transfer credit card is similar to applying for any credit card. You’ll need your personal and financial information on hand.
- Initiate the balance transfer. Balance transfers may take two weeks or more to process, so start early. You’ll need to collect information to transfer the debt, such as account numbers and final transfer amounts. Once transferred, the debt will show as paid on the original card, but increase your balance owed on the new card.
- Make a payment plan. Ideally, you’ll pay off the full transfer before the end of the specified introductory period to avoid interest charges. However, even making minimum payments is enough to avoid late fees, penalties or impacts to your credit report.
Once you’ve been approved for the new card, get started on your transfer right away. The process isn’t instant: A balance transfer from one credit card to another can take from a few days to a few weeks to complete.
How To Transfer My Balance by Card Issuer
If you already have a credit card ready to accept a balance transfer, here’s more information on how to complete a transfer with each bank:
How do you get the most out of a balance transfer card?
Jannese Torres
Credit Cards Expert
Becky Pokora
Credit Cards Writer
Harlan Vaughn
Credit Card Expert
While you’re paying off the debt you’ve transferred, stick to using debit cards or cash to avoid racking up additional debt. Also, make sure you have a plan to avoid going back into debt, which is usually the reason why people resort to using balance transfers. Finally, consider supplementing your income with a side hustle. Allocating those extra funds toward your balance can help you become debt-free faster.
Credit Cards Expert
Double-check the math before initiating a balance transfer. On balances you expect to pay quickly, it may not be worth paying a balance transfer fee compared to the amount of interest you’d accrue over a few short months.
Credit Cards Writer
I’ve done balance transfers for various reasons: to self-finance a home upgrade, make a big loan payment and pay down debt faster. But you need to keep a close eye on when the 0% intro APR period ends and budget enough each month to pay your balance in full before it expires. Used carefully, balance transfers are a powerful financial tool.
Credit Card Expert
How Much Can You Save With a Balance Transfer?
How much you can save with a balance transfer will depend on a few factors, including:
- The interest rates on your card with a balance
- The amount of your balance
- The balance transfer fee
- The APR on the new card
- The amount you transfer
Use our balance transfer calculator to determine how much you can save by transferring your balance using a card on our list. You’ll need the APR of your current credit card, the balance you intend to transfer and the fees, and the APR and the intro period length of the card you wish to transfer the balance to.
Let’s assume you have a $2,000 balance on a credit card that currently charges 28.00% APR, and you’re making payments of $100 per month. Without making any changes, it would take you 28 months to pay off your balance, and you’d pay $726 in interest over that time.
Now, let’s assume that you decide to transfer the entire balance to a card that offers 21 months of 0% intro APR with a 3% balance transfer fee. If you continued to make $100 monthly payments, you’d pay off your balance in exactly 21 months, which means you’d pay no interest at all. Even after the $60 balance transfer fee, you’d still save $666.
The debt lasso method is a popular strategy for using balance transfers to pay off debt faster. It involves ‘lassoing’ as many existing card debts as you can to the fewest cards or loans at the lowest possible interest rates. After your balance transfer is complete, you make the minimum payments on all your cards while adding any extra payment amount toward the card that has the highest interest rate. Then you repeat this process after each card’s balance is paid off or you receive a new balance transfer offer.
– Clint Proctor, Forbes Advisor Managing Editor
How Much Debt Can You Transfer With a Balance Transfer?
The maximum amount of debt you can transfer will be determined by the issuing bank based on your creditworthiness.
Balance transfer fees are added to your transfer, and the larger the fee, the more your available debt repayment amount is reduced. The table below shows how the maximum transfer amount for a card with a $10,000 limit would change depending on the balance transfer fee percentage.
| Maximum Balance Transfer for a Card With a $10,000 Credit Limit | |
|---|---|
| Balance Transfer Fee | Maximum Transferred Balance |
| 3% ($300) | $9,700 |
| 4% ($400) | $9,600 |
| 5% ($500) | $9,500 |
Timing Your Balance Transfer: When To Apply
Balance transfer offers aren’t limitless, which makes timing your card application important. There are generally two time frames you need to be aware of.
First, look into how long you have to request the transfer at the promotional 0% APR, which is often 30 to 120 days after card approval. Timing your balance transfer application for when you have time to handle the paperwork is essential.
Secondly, consider the length of time your 0% rate applies. Typically, low introductory rates last anywhere from six months to nearly two years, during which customers won’t accrue interest on that balance. To make the most of this period, ensure that time aligns with when you can make extra payments. Every dollar you pay is applied toward the principal, helping you make progress faster.
Common Balance Transfer Credit Card Mistakes
Balance transfer cards can be a shrewd way to manage your debt, but you’ll want to avoid these balance transfer pitfalls in the process:
- Not budgeting for the balance transfer fee. You’ll usually pay a fee of 3% to 5% to transfer a balance, which can be a major financial hit if you’re not expecting it.
- Not starting the process to transfer a balance right away. After being approved for a balance transfer card, don’t let the actual transfer sit on your to-do list forever. You’ll need to initiate the transfer within a certain period.
- Not having a plan to pay off the debt. The point of a balance transfer is to pay off your debt without accruing interest, not just postpone it for “someday.”
- Not using this as an opportunity to rebudget. Ideally, you’ll use this as a learning opportunity to avoid future debt rather than a temptation to overspend or overly rely on your card.
Pros and Cons of Balance Transfer Credit Cards
While a balance transfer card can be an appealing option for paying down debt, it’s important to consider the pros and cons of balance transfer offers before opening up a new card.
| Pros of Balance Transfer Cards | Cons of Balance Transfer Cards |
|---|---|
| Save on interest by taking advantage of 0% APR for a period of time. | Balance transfer fees of 3% to 5% may limit your savings. |
| Simplify card management and monthly payments by consolidating cards. | Transfer limits may impact your ability to move the balance you wish. |
| Opportunity to switch to a card with better terms or rewards. | Strong credit is usually required for new card approval. |
When I started freelance writing after college, I didn’t have much of an emergency fund saved up. Strategically using 0% APR and balance transfer credit cards allowed me to get my freelance writing career off the ground without ever paying interest.
– Caroline Lupini, Forbes Advisor Managing Editor
Alternatives to Balance Transfers
Balance transfers aren’t the only pathway to get some breathing room on high-interest debt.
| Debt Strategy | Why To Use It |
|---|---|
| Pay payment on your existing card. | If your APR on an existing card is low enough (or if you expect to pay a debt off fast enough), paying as much as you can afford on that card will avoid a balance transfer fee. |
| Consider a personal loan. | A personal or loan may be available to you at a lower interest rate than your credit card APR. |
| Negotiate with creditors. | Contact your creditors directly to negotiate lower interest rates or reduced payments. |
| Meet with a certified nonprofit credit counselor. | A nonprofit credit counselor can help you evaluate and other repayment methods. To schedule a financial review with a certified counselor, you can visit the . |
⁺For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.
Balance Transfer Frequently Asked Questions (FAQs)
Does a balance transfer affect your credit score?
Opening a new line of credit can ding your credit score with the credit inquiry, but it can also give you a boost if your credit utilization decreases and continues to fall as you pay down your debt.
Why can't I transfer my balance?
You may not be eligible for a balance transfer right now due to your creditworthiness and financial situation. But there are several ways to improve your odds of receiving a balance transfer offer in the future:
• Report as much income as you can on your card applications
• Check for preapproval offers from various issuers
• Ensure you’re opted in for prescreened mail offers
If your card’s agreement does not specifically mention a balance transfer APR or balance transfer fees in the Schumer box, it likely doesn’t offer balance transfers. You can call the number on the back of your card to find out for sure or contact an issuer before applying for a card to confirm.
How many balance transfers can I do?
There’s technically no set limit to the number of times you can transfer a balance from one issuer to another. Just keep in mind that if you transfer the same balance more than once, you’ll likely pay a balance transfer fee each time, which will diminish your overall savings.
Can you get preapproved for a balance transfer?
Some balance transfer credit cards have preapproval tools, but that varies by issuer. Remember, prequalifying for balance transfer cards is not an official guarantee that your application will be approved. A formal application considers other factors and information not available through a soft inquiry on your credit.
Can you do a partial balance transfer?
Yes, you are not required to transfer the full balance from your credit card. You can choose how much of the balance you would like to transfer.
