What is a balance transfer?A balance transfer is a transaction that allows you to move full or a part of your balances from your credit card (or cards) to another card with a lower interest rate. The point of performing a balance transfer is to pay off your credit card debt at a lower APR or no interest rate. The most reasonable balance transfers are transfers to a new credit card that offers a long 0% intro APR period because this way you will be able to save the most money in the long run. It should be noted that balance transfers cannot be completed between credit cards that are issued by the same bank.
How does a balance transfer work?Credit card balance transfers are actually rather simple and easy to complete. Here are three steps with all details that outline a balance transfer process. Read on to see what actions you need to take in order to complete a balance transfer.
1. Apply for a new balance transfer credit cardWhen you are thinking of a balance transfer, a new credit card with 0% intro APR on balance transfers is the best choice. As you are looking for a balance transfer credit card, your first priority should be credit cards with a long 0% intro APR and a low balance transfer fee. A standard balance transfer fee is 3% of the amount transferred, but sometimes this fee can be up to 5% of the amount transferred. There are only a few credit cards with no balance transfer fee, meaning you don’t have to pay any fee to transfer the balance, however, you should note that paying a balance transfer fee isn’t always a bad thing. Depending on the balance transfer credit card you choose, you still can save on a balance transfer even if you pay a balance transfer fee. If not, then that balance transfer credit card isn’t a fit for you. If you are not sure where to start and need some help finding the best credit cards for balance transfer, here we’ve picked up some of the best credit cards for balance transfer below.
Longest 0% Intro APR on Balance Transfers
The Citi® Diamond Preferred® Card (Citi is a Credit-Land.com advertising partner) comes with 21 months of 0% intro APR on balance transfers. You’ll have more than one year to pay off the transferred balance before a go-to APR (13.74% - 23.74% (Variable) based on your creditworthiness) comes into effect. Note that you need to complete all transfers in the first 4 months to get this long zero introductory rate. The balance transfer fee is equal to the industry standard – 5% of each balance transfer you initiate. There is no annual fee for the card, and there is no rewards program – a good card to concentrate on paying off your debts.Citi Rewards+® Card can be a good option for those who want to pay off their debt and continue using the new card for everyday purchases. The card offers 15 months of 0% intro APR on balance transfers and purchases. Once the introductory rate is over, the variable APR will be 13.49% - 23.49% (Variable), based on your creditworthiness. Note that the card's balance transfer fee is Intro fee 3% of each transfer ($5 min) completed within the first 4 months of account opening. After that, 5% of each transfer ($5 min). On the bright side, there is no annual fee, and the card comes with a point rewards program. The card allows earning points on all purchases, and the points you earn are ThankYou points, meaning you can redeem them on the ThankYou portal.