Best Balance Transfer Credit Cards

Balance transfers affect your credit score because they typically involve opening a new credit card account to receive the transfer. When you apply for a new credit card, the issuer does a hard inquiry into your credit history, which temporarily hurts your credit score. However, if you use the transfer to pay off your debt sooner, this should benefit your credit score and overall financial health in the long run.

To see how a balance transfer is likely to affect your credit score in particular, try WalletHub's free credit score simulator. You can also learn more about how transfers generally affect people's credit below.

Here's how balance transfers affect your credit score:

• Hard inquiry:

  When you apply for a balance transfer card, the issuer will pull a copy of your credit report. Known as a hard inquiry, this will lower your credit score slightly, but only temporarily.

• Decline in average account age:

  Opening a new credit card will reduce the average age of your accounts, which could knock a few points off your credit score.

• Slightly more debt:

  Most credit cards have balance transfer fees, which are usually around 3% of the amount you transfer. This fee is tacked onto your transferred balance, temporarily increasing your total debt load.

• Credit utilization rate:

  The effect of a balance transfer on your credit utilization could be positive or negative initially. On the plus side, your overall credit utilization should improve when you open a new credit card account because your total credit limit goes up while your balance doesn't change much. However, if the new card has a lower credit limit than the card you're transferring the balance from, the utilization ratio for the new card will end up being higher than it was on the old card. This could cause your credit score to fall, but it should recover as you pay down your balance.

How long do balance transfers affect your credit score?

A balance transfer can affect your credit score for up to a year just from the hard inquiry involved with opening a new credit card account. However, exactly how long this type of transaction impacts your finances depends on whether you use it to pay down what you owe or to get into more debt. Reduced debt and on-time payments will add positive information to your credit reports, leading to credit score improvement over time.

To stay on top of your credit throughout every stage of a balance transfer, sign up for a free WalletHub account. You'll get daily credit score updates, 24/7 credit monitoring, and personalized credit improvement advice.

Doing a balance transfer is a very good idea if you need multiple months to pay off high-interest debt and you are able to qualify for a 0% balance transfer credit card. Most balance transfer cards require a 700+ credit score.

What you should know before making a balance transfer:

• You generally need good credit or better to get a 0% balance transfer credit card. Most balance transfer cards have very high regular APRs, making...

No balance transfer fee credit cards can save you an average of 3% on each transfer, making it easier to get out of debt quickly. The best credit cards with no balance transfer fee also offer a low introductory balance transfer APR for extra savings (some cards are from WalletHub partners). To help you find the right card for your needs, WalletHub’s editors compared more than 1,500 offers and picked the best credit cards without balance transfer fees.  

According to WalletHub’s analysis of the credit card market, even the best credit cards with $0 balance transfer fees tend to have fairly high regular APRs, unfortunately. With that in mind, you’d be wise to use a balance transfer calculator to ensure you’re debt-free on schedule.

3 Best No Balance Transfer Fee Credit Cards in 2024

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The best way to do a balance transfer is to apply for a new credit card with a low balance transfer APR and low fees. If your balance transfer credit card application is approved, the new card's issuer will pay your original creditor for the amount transferred. You will then owe that amount, plus a balance transfer fee of 0% - 3%, to the balance transfer card's issuer. If you repay the full amount of your balance...

The best Chase balance transfer card is Chase Freedom Unlimited® because it offers an introductory APR of 0% for 15 months on both balance transfers and purchases. That long introductory period could save you a lot of money on interest charges, and Chase Freedom Unlimited also has a $0 annual fee to help you keep costs down.

The Chase Freedom Unlimited card's regular APR is 20.49% - 29.24% (V), depending on your overall creditworthiness. In addition, you have to account for the balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after)....

The easiest balance transfer credit card to get approved for is the Citi Double Cash Card because you only need fair credit to qualify. The Citi Double Cash Card also offers an introductory balance transfer APR of 0% for 18 months.

The card has a regular APR of 19.24% - 29.24% (V) and a transfer fee of 3% intro fee ($5 min) for each transfer in first 4 months, after that 5% ($5 min) for each transfer. Easy approval balance transfer credit cards typically don't measure up to the best balance transfer credit cards in terms of interest rates and fees, but this offer comes close thanks to its...

Yes, it is worth it to transfer a balance because it is a great way to refinance existing credit card debt. If you can get a lower interest rate in the process, it will save you money and help you pay off the debt sooner. For example, transferring a balance with a high APR to a 0% balance transfer credit card could save you a lot of money even if the card has a balance...

The best balance transfer credit card for fair credit is the Citi Double Cash® Card because it offers an introductory APR of 0% for 18 months on balance transfers made within 4 months of opening an account. This card also has a $0 annual fee.

The Citi Double Cash Card's regular APR is 19.24% - 29.24% (V). You also have to account for its balance transfer fee: 3% intro fee ($5 min) for each transfer in first 4 months, after that 5% ($5 min) for each transfer. You can get approved for the card with fair credit or better.

Best Balance Transfer Cards for...

The best debt consolidation credit card is the U.S. Bank Visa® Platinum Card because it offers an intro APR of 0% for 18 billing cycles on balance transfers, along with a $0 annual fee. You can avoid finance charges for more than half a year longer than average with this card, which should produce lots of savings.

When comparing credit cards for debt consolidation, your goal should be to find an offer that will reduce the total cost of your debt and shorten your timeline to...

The pros of balance transfers include saving money on interest, consolidating debt, and possible improvement in credit score in the long run. The cons of balance transfers include balance transfer fees, high regular APRs, and above-average score requirements. Generally, when you transfer a balance, you're shifting high-interest debt to a credit card with a lower interest rate.

Pros and Cons of Balance Transfers