Are you carrying a balance on a high-interest credit card?
It’s not fun, is it?
Every month that your credit card balance isn’t paid in full, you’re paying the credit card companies a sizeable amount in interest.
Credit card interest, the annual percentage rate (APR), could be upwards of 20% or more, and it can vary based on your creditworthiness as determined by the issuer.
Plus, these rates also vary with the U.S. Prime Rate.
Wouldn’t it be nice if you could reduce the amount of interest you’re paying, and use the money you’re saving to pay down your debt faster?
Well, you’re in luck.
By getting a credit card with a low balance transfer interest rate, you can start saving money and paying off your credit card balance.
But first, let’s discuss:
- how balance transfers work,
- balance transfer credit cards with 0% interest rate,
- permanently low interest balance transfer credit cards,
- balance transfer credit cards for bad credit,
- a few honorable mentions, and
- a credit card interest calculator to show you how much you could save.
How balance transfer credit cards work
First thing’s first – learning how balance transfer credit cards work.
For a fee that varies by card (usually around 3% of the total being transferred), you can transfer the balance from an existing card to your new one.
Once the balance is moved, you’ll start enjoying a lower interest rate and save yourself from soul-crushing interest payments. And then, when the promotion period is over, you’ll revert to the card’s normal balance transfer rate.
There’s a set amount of time after opening your account to make the transfer in order to be eligible for the offer (usually 2-3 months). And if you make a transfer after that, you’ll pay interest at the normal balance transfer rate for the card.
Balance transfer credit cards with 0% interest rate
There are many credit cards that offer a promotional APR of 0% for a set time period.
(To see the full list, head to our compare cards page and set the 3rd slider to low interest. Not only will this give you all of our low interest credit cards, but it’ll also show which cards offer a 0% APR balance transfer promotion.)
Although there’s quite a few balance transfer offers to choose from, to get one you’ll most likely have to choose between a cash back card or a card that belong to an issuer-specific rewards program.
With that said, here’s our favorite card from each issuer that has a balance transfer promotion:
In the above list, you’ll find a range from 12 to 18 months of 0% APR on any balance transfers made to the card.
12 to 18 months of credit card interest relief. Imagine how much of your credit card balance you could get paid down in that amount of time.
Related: Best Credit Cards of 2019
Permanent low interest balance transfer credit cards
If you’re looking or a solution that’s a little more permanent, you might be looking for a card that has a permanently low balance transfer interest rate.
If so, the
That’s right, regardless of your credit score, you’ll get the same low rate of prime plus 8.74% (at the time of writing, this is an APR of 14.24%).
And this is after a balance transfer promotion of 0% for 15 months.
Balance transfer credit card for bad credit
If you have a poor credit rating, there’s an option for you as well.
The Discover it Secured is the only secured card that has a low balance transfer rate.
The transfer APR is 10.99% for 6 months, which goes up to their normal rates when your 6 months are up.
However, as the only poor credit option, you’ll have to settle for it.
In addition to the cards mentioned above, there are a few cards that we think deserve an honorable mention.
Credit card with the longest balance transfer promotion
If you’re looking for a card that will give you the longest balance transfer promotional rate available, the
It’ll give you 21 months of 0% APR on your balance transfers – that’s almost 2 years to help you pay off your credit card debt.
Balance transfer credit cards with no transfer fee
Or maybe you’re looking for a card that will help you save money when you make your transfer.
If so, the
Let’s say you’re transferring $5,000 in pre-existing credit card debt, you’ll be saving $150.
$5,000 * 3% = $150
Credit card interest calculator
If you are carrying a balance on your card, taking advantage of one of these balance transfer promotions is a great way to save you money.
And the more money you save, the faster you could say goodbye to your credit card debt.
Even if you’re only carrying a balance of $2,000, you could save $350 or more per year.
That’s $350 to go towards your debt.
Curious to know how much you could save?
Here’s our credit card interest calculator, to show you what you’re paying in interest, and how much you could save with a balance transfer card.
We would love to hear from you
Have you used a balance transfer offer to help pay your credit card debt?
If so, how was your experience?
Let us know in the comments below.