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February 28, 2021
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This article was last updated February 28, 2021 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
Using a balance transfer to move other high-interest debt to a balance transfer credit card — especially one offering a 0% introductory APR — can help you pay off that debt faster since you’ll be saving on interest charges. But before you apply for a balance transfer card, know that it can have both a positive and negative effect on your credit score. Still, in the long term, a balance transfer can actually improve your credit score if done carefully.
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The main way a balance transfer can help improve your credit score is by reducing your utilization. It’s calculated both on a card-by-card basis and across all your cards. However, only accounts with revolving credit lines — as opposed to personal loans — are factored in your credit utilization. The less available credit you’re using (lower utilization), the better for your credit score — utilization accounts for 30% of your FICO Score.
When you open a new balance transfer credit card, you’re adding a new line of credit and thereby reducing your overall credit utilization if you are carrying debt on other credit cards. And if you use the balance transfer to pay off a balance on another card, then that card’s utilization ratio is reduced. Your new balance transfer card will likely have a high balance, though as you begin to pay down that balance over time and don’t add any new debt, your credit score should go up.
In doing a balance transfer to a credit card you already have, your overall credit limit doesn’t change — however, your utilization on that individual card will rise until you knock that balance down, resulting in a temporary dip in your score.
The key thing to remember when doing a balance transfer is that the goal is to reduce your debt load, which will ultimately factor favorably upon your credit score.
When you open a new credit card, the application generates a hard inquiry, which typically lowers your credit score about 5–10 points and stays on your credit reports for two years. This means once you open a new balance transfer card, you should expect to see your score go down a bit. However, you can also expect the inquiry to no longer affect your score after one year.
If you take advantage of a balance transfer offer on a credit card you already have open, no inquiries will be generated, and your credit score shouldn’t suffer. However, it will ding your credit score as you add more debt to your existing card, but as you pay down that balance, your score should come back up even better than before if you don’t add any debt to your cards.
Also beware that it will hurt your credit score if you build up more debt on the card you moved the balance from after doing the transfer. The second-most-important factor affecting your FICO Score (the credit scoring model lenders typically use when deciding whether or not to issue you credit) is amounts owed, and the closer you get to maxing out a card, the riskier of a borrower you appear to be.
When choosing a balance transfer card, first, pick a different issuer than your current card is from. You can’t transfer balances between cards from the same issuer. Next, evaluate how long you’ll need to pay off your debt. Depending on what balance transfer card you choose to apply for, you might get a 0% intro APR period ranging from 12 to 21 months. Finally, evaluate if you’re willing to pay a balance transfer fee, and if so, how high. Some of our top picks, based on an analysis of cards available on LendingTree and from major issuers, are below.
The Wells Fargo Reflect® Card offers a 0% intro APR up to 21 months from account opening on qualifying balance transfers. After, a 17.49% - 29.49% variable APR applies. This is the longest 0% intro APR period for balance transfers that we’ve found.
There’s a balance transfer fee of 3% for 120 days from account opening, then up to 5%; min: $5.
The Wells Fargo Reflect® Card also offers a 0% intro APR up to 21 months from account opening for purchases, after which a 17.49% - 29.49% variable APR applies.
Note that you initially get 18 months of 0% intro APR on both balance transfers and purchases, and by making on-time minimum payments, you have an opportunity to get an extension of up to three months.
The annual fee is $0 but be aware there is a 3% foreign transaction fee.
Whether you need to transfer debt from a non-Wells Fargo credit card or finance a big purchase, the Wells Fargo Reflect® Card is an excellent pick. It doesn’t earn rewards or offer a sign-up bonus, but its lengthy 0% intro APR periods make it one of the best cards on the market for paying off debt.
Plus, thanks to its cellphone protection benefit, the Wells Fargo Reflect® Card is worth keeping around after you pay off your balance to use for your monthly cellphone payment.
The Wells Fargo Reflect® Card offers a 0% intro APR up to 21 months from account opening on qualifying balance transfers. After, a 17.49% - 29.49% variable APR applies. This is the longest 0% intro APR period for balance transfers that we’ve found.
There’s a balance transfer fee of 3% for 120 days from account opening, then up to 5%; min: $5.
The Wells Fargo Reflect® Card also offers a 0% intro APR up to 21 months from account opening for purchases, after which a 17.49% - 29.49% variable APR applies.
Note that you initially get 18 months of 0% intro APR on both balance transfers and purchases, and by making on-time minimum payments, you have an opportunity to get an extension of up to three months.
The annual fee is $0 but be aware there is a 3% foreign transaction fee.
Whether you need to transfer debt from a non-Wells Fargo credit card or finance a big purchase, the Wells Fargo Reflect® Card is an excellent pick. It doesn’t earn rewards or offer a sign-up bonus, but its lengthy 0% intro APR periods make it one of the best cards on the market for paying off debt.
Plus, thanks to its cellphone protection benefit, the Wells Fargo Reflect® Card is worth keeping around after you pay off your balance to use for your monthly cellphone payment.
The Citi Simplicity® Card offers an exceptionally long intro APR of 0% for 21 months on balance transfers. After, a 18.49% - 29.24% (variable) APR applies. That gives you almost two years to pay off debt with no interest.
A there is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. Then a balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum. That’s a bit on the high side, but might still be worth it if you need a long time to pay off your balance transfer.
The intro APR period on purchases is not as lengthy: 0% for 12 months on purchases. After, a 18.49% - 29.24% (variable) APR applies. This card is better as a balance transfer card than for financing purchases.
You’ll pay a $0, annual fee but there is a foreign transaction fee of 3% of each purchase transaction after its conversion into U.S. dollars.
When you’re on a tight budget and need a long time to pay off a balance transfer, consider the Citi Simplicity® Card. The lengthy 0% intro APR this card offers on balance transfers rivals that of the Wells Fargo Reflect® Card.
You won’t earn rewards or a sign-up bonus, but if you’re looking to get out of debt with a balance transfer, this is one card that can help you do it.
The Citi Simplicity® Card offers an exceptionally long intro APR of 0% for 21 months on balance transfers. After, a 18.49% - 29.24% (variable) APR applies. That gives you almost two years to pay off debt with no interest.
A there is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. Then a balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum. That’s a bit on the high side, but might still be worth it if you need a long time to pay off your balance transfer.
The intro APR period on purchases is not as lengthy: 0% for 12 months on purchases. After, a 18.49% - 29.24% (variable) APR applies. This card is better as a balance transfer card than for financing purchases.
You’ll pay a $0, annual fee but there is a foreign transaction fee of 3% of each purchase transaction after its conversion into U.S. dollars.
When you’re on a tight budget and need a long time to pay off a balance transfer, consider the Citi Simplicity® Card. The lengthy 0% intro APR this card offers on balance transfers rivals that of the Wells Fargo Reflect® Card.
You won’t earn rewards or a sign-up bonus, but if you’re looking to get out of debt with a balance transfer, this is one card that can help you do it.
The Navy Federal Platinum Credit Card offers a shorter 0% intro APR period on balance transfers than the two cards above: a 0.99% introductory APR for 12 months* *Applies to balance transfers requested within 60 days of account opening. After, a low regular APR of 10.24% to 18% applies. So what makes this card exceptional? It charges a $0 balance transfer fee, and cards with no balance transfer fee are uncommon.
There’s no 0% intro APR period on purchases, so you’ll start out at the regular 10.24% to 18% APR. The card’s annual fee is $0 and the foreign transaction fee is $0 as well.
To be able to apply for the Navy Federal Platinum Credit Card, you must be a member of Navy Federal Credit Union (NFCU). Membership is open to active duty and retired U.S. military members, veterans, eligible family members and civilians employed by the U.S. Department of Defense.
If you fall into one of those categories, and you need a no-balance-transfer fee card to help you pay down debt with a decent 0% intro APR period, this is probably the card for you. Plus, if you get a regular APR at the lower end of the 10.24% to 18% range, it’s worth keeping the Navy Federal Platinum Credit Card in your wallet even after the intro APR ends for those times you need a low interest credit card.
The Navy Federal Platinum Credit Card offers a shorter 0% intro APR period on balance transfers than the two cards above: a 0.99% introductory APR for 12 months* *Applies to balance transfers requested within 60 days of account opening. After, a low regular APR of 10.24% to 18% applies. So what makes this card exceptional? It charges a $0 balance transfer fee, and cards with no balance transfer fee are uncommon.
There’s no 0% intro APR period on purchases, so you’ll start out at the regular 10.24% to 18% APR. The card’s annual fee is $0 and the foreign transaction fee is $0 as well.
To be able to apply for the Navy Federal Platinum Credit Card, you must be a member of Navy Federal Credit Union (NFCU). Membership is open to active duty and retired U.S. military members, veterans, eligible family members and civilians employed by the U.S. Department of Defense.
If you fall into one of those categories, and you need a no-balance-transfer fee card to help you pay down debt with a decent 0% intro APR period, this is probably the card for you. Plus, if you get a regular APR at the lower end of the 10.24% to 18% range, it’s worth keeping the Navy Federal Platinum Credit Card in your wallet even after the intro APR ends for those times you need a low interest credit card.
Applying for a balance transfer isn’t always the right move. For example, with poor or fair credit, you probably won’t get approved for a balance transfer card. Or, if you keep opening up new credit cards and shifting debt around, lenders will catch on. But a balance transfer can be a great way to get out of debt if you’re disciplined about it. And if you meet the following criteria, a balance transfer to a 0% intro APR credit card is probably right for you:
If you aren’t sure your credit score is good enough to qualify for a balance transfer card, or if you simply don’t want to open up another credit card, applying for a personal loan instead might be a better option.
You can use a personal loan to pay off debt from one or more credit cards, and unlike a balance transfer card, you’ll have the stability of having a set monthly payment amount and predetermined payoff date. While you will pay interest on a personal loan, you might still end up saving money compared with the interest you’d be charged for carrying a balance on a credit card that doesn’t have a 0% APR period active.
To comparison shop personal loans, use LendingTree’s personal loan tool and click “get customized rates.”
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
