Credit card debt is never fun, and developing a plan to get yourself out of the debt can be exhausting. Credit cards commonly charge interest rates of 20% or more, and if you miss a few payments the default rate can be even worse. Fortunately, if your credit is still decent, there is a way to make payments on your credit card without paying any interest. That’s through a solid 0% balance transfer offer provided by a new credit card.
0% APR balance transfer offers are commonly provided by credit card issuers to attract new customers. Credit card issuers rightfully assume that if they can attract you to their product by offering to house your debt for 0% interest, you’re likely to generate new debt after you’ve paid off the old debt. The trick in taking advantage of a balance transfer offer is to pay off the entire debt during the 0% introductory offer, then pledging never again to get deep into credit card debt. It’s easier said than done for many.
Many cards now have balance transfer fees, but even with a fee, you could save thousands of dollars of interest charges by taking advantage of 0% APR balance transfer offers. Below you will find the best credit cards available for balance transfers as of February 2012. If you have a favorite balance transfer offer not included on this list, let me know and I’ll add it.
Editor’s choice
Slate® from Chase – No Balance Transfer Fee. If you have excellent or good credit, the Slate® from Chase – No Balance Transfer Fee offers a 0% introductory APR on both purchases and balance transfers for 15 months, without charging the dreaded balance transfer fee on transfers made within 30 days of account opening. All other transfers will be charged $5 or 3% of the amount of each transfer, whichever is greater. The Slate® from Chase – No Balance Transfer Fee also offers a low standard APR of 11.99%, 16.99% or 21.99% variable, depending on your credit history. The card comes with Chase’s Blueprint feature, which allows you to watch your spending like a hawk, paying down the purchases you want as soon as possible.
Unlike every other card on this list, you’ll avoid the 3% surcharge when making a balance transfer within 30 days of account opening, so if you can pay off your credit card balance in the 15-month timeframe, the total cost of fees and interest is zero. The Slate® from Chase – No Balance Transfer Fee also has the benefit of being annual-fee free, so depending on your needs, this card could represent the highest amount of savings.
Discover® More® Card. The Discover® More® Card offers a 0% introductory APR on balance transfers for 15 months and a 0% introductory APR on purchases for 15 months. Discover has an introductory balance transfer fee of 3%, however after the introductory balance transfer period there is a 5% balance transfer fee ($10 minimum) making it slightly more expensive than Citibank to transfer a balance. With this card you’ll earn other benefits such as 0.25% cash back on your first $3,000 in annual purchases then 1% cash back thereafter. The opportunity to earn 5% cash back on rotating categories is also present and there is no annual fee.
Chase Freedom® Visa – $100 Bonus Cash Back. The Chase Freedom® Visa – $100 Bonus Cash Back offers account holders a 0% introductory APR on balance transfers for 12 months and carries a 3% balance transfer fee ($5 minimum). The Chase Freedom® Visa – $100 Bonus Cash Back provides 1% cash back on all purchases and 5% cash back on rotating categories, subject to a maximum and qarterly enrollment, and is therefore one of our favorite cash back credit cards. The Chase Freedom® Visa – $100 Bonus Cash Back also offers a 0% introductory APR on purchases for six months and does not have an annual fee.
Citi® Platinum Select® MasterCard. The Citi® Platinum Select® MasterCard has long been the king of balance transfers, with an 18-month 0% APR offer. The Citi® Platinum Select® MasterCard currently offers a 0% introductory APR on balance transfers for 18 months and 0% introductory APR on purchases for 18 months. After your introductory rate expires, the card carries an 11.99% to 21.99% variable APR, depending on creditworthiness.
Unfortunately, the balance transfer that Citi is offering does not come free. There is a 3% balance transfer fee ($5 minimum) charged to every balance transfer made. For example, if you are transferring a $10,000 balance, your new Citi® Platinum Select® MasterCard will begin with a $10,300 balance. The Citi® Platinum Select® MasterCard has no annual fee and provides online discounts on gift cards, travel and merchandise.
Citi® Dividend Platinum Select® Visa® Card. Depending on how long you need to pay off a transferred balance, the Citi® Dividend Platinum Select® Visa® Card may be your best option. With a 0% introductory APR on balance transfers for 12 months and 3% balance transfer fee ($5 minimum), the Citi® Dividend Platinum Select® Visa® Card is just nine months shorter than our number one card, the Citi® Platinum Select® MasterCard®. However, you will find added perks on the Citi® Dividend Platinum Select® Visa® Card®, like 0% introductory APR on purchases for 12 months, 1% cash back on all purchases, 5% cash back on rotating categories and a $100 cash back after spending $500 during the first three months. Enrollment into the cash back program is required every quarter and this card carries no annual fee. For the balance transfer low introductory APR remember to transfer any balances within four months of account opening.
Citi Forward® Card. The Citi Forward® Card promotes responsible credit card use and their offer coincides with their marketing message. A 0% introductory APR on balance transfers for 12 months and 0% into APR on purchases for 7 months makes the Citi Forward® Card an attractive credit card. In addition, the card offers 10,000 bonus points if you spend $650 and sign up for paperless statements within the first three months. Five Thank-You points are earned on restaurant, book, movie and music purchases and one Thank-You point for every dollar you spend on all other eligible purchases. Cardholders can earn up to a two percentage point reduction APR if they remain under their credit line and pay on time for three billing cycles in a row. The Citi Forward® Card carries no annual fee and has a balance transfer fee of 3% ($5 minimum).
Capital One® Platinum Prestige. The Capital One® Platinum Prestige Card made our list because it’s the cheapest option for consumers who need to make immediate balance transfers. With a 0% introductory APR on purchases and balance transfers until March 2013 and a 3% balance transfer fee, those confident they can pay their balance off within 15 months should seriously consider this card. You won’t find many other perks on the Capital One® Platinum Prestige Card but with no annual fee, it’s a great option for consumers.
The days of fee-free balance transfer offers are for the most part gone. A 0% introductory offer, even when combined with a balance transfer fee, can most of the time result in a better financial choice than continuing to pay off a balance on a high-interest rate card. Run the numbers and understand your own likelihood to play by the credit card issuer’s rules before transferring a balance.
Updated February 6, 2012 and originally published September 24, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
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BANK OF CHINA CC SCAM
Just returned from a trip from Hong Kong and China
In HK, all the charges are in HK $, thus avoiding the 3% Dynamic exchange fee. The only one that charge Dynamic exchange fee is Bank of China subsidiary that process Visa CC transactions.
In China, things gets really bad. Each time I ask to be charged in RMB, it came out to be in US$. After protest, it still come up with a statement saying that I was offer to reject the US$ option (which I did not). The bank say all I have to do is to cross out the option line and write RMB on the charge line, I will be fine. When I came home and check my statements, it all had the 3% Dynamic Exchange rated added onto my Schwab Credit card.
It is a big scam by Bank of China.. Be careful when you use credit card in China
“…then pledging never again to get deep into credit card debt. It’s easier said than done for many.” – hehehehe
I have a Citi Dividend MasterCard. I took out a 2500 balance transfer with 0 interest until October of next year. What Citi (and this website) DOESN’T tell you, is that if you use your credit card for purchases, even if you pay off the amount of the purchases on the card (ie if you spend 500, bringing your total balance to 3000, and pay 500 at the end of the month, leaving you with 2500 again)… You pay interest on your 2500 balance.
So I’ll be paying at least 13 bucks a month in interest until I’ve paid off the 2500 balance transfer, which I was really hoping I wouldn’t have to worry about until summer of next year, because money is very tight.
I spoke at great length with some supervisor gentleman who told me about the 0% APR balance transfer, and at NO time did he tell me I’d be unable to use my card. I feel so lied to.
I have a Citi platinum mastercard and recently completed a 0 APR balance transfer with a 6 month term. I never pay interest on credit card but was faced with an unusual home repair so it seemed a prudent way to manage the expense. Also, i already had the card and simply had to select the option. The 3 percent fee was fine as I pretty much washed it out by receiving a 2 percent cash back reward from the HSBC card i used for the purchase. So far so good, right? Nooooo! I then used the Citicard for some regular (standard) purchases figuring I pay those off in full plus the minimum amount due. To my surprise, the new standard purchases started accruing interest from the date of purchase! I called Citibank and they agreed to reimburse the interest charge. Now, I no longer use the Citibank card and continue to pay the minimum each month and avoid any interest. It seems they shoot themselves in the foot as not using the card at all deprives them of any additional revenue. Word of caution, ask questions before signing up, these can work for you as long as you understand their terms and can adjust accordingly.