The Best Balance Transfer Credit Cards for 2021

Daniel Penzing
Written by
Last update:

Balance Transfer Credit Card Offers

You should never be swiping your credit card without knowing exactly how long the promotional period lasts. When you have this information it will be much easier for you to determine if the deal is good or not and will also show you how much you will end up paying for the purchase. One thing that most card holders forget is that they often have to pay interest on their balance transfer as soon as the promotional period has ended. In this article, I will give you a list of balance transfer credit card offers with information and also tell you what you should be looking out for.

What You Should Look for in a Balance Transfer Card

You have to think about your future and be realistic. You want to pay off your balance as soon as possible but this will take time and is something that you should try to work out. If you transfer that balance to a credit card that has a 0% APR then you will not end up paying any interest costs. However, most stores and major institutions give the option for you to use a card for a long time. Let’s say that you run out of money and you rely on your credit card to live off for a few months. This is going to lead you to paying more in interest than you normally would. I would advise that you allow yourself to get into a cycle of paying off your balance and then transferring it. This will always lead you to paying less in interest.

Capital One ® Quicksilver ® Cash Rewards

Discover it ® Balance Transfer

Citi’s® Double Cash Card – 18 Month BT offer is another great balance transfer card for consumers with excellent credit. The card doesn’t have an annual fee and has 2% cash back on purchases. You can receive your cash back twice a year, depending on when you have more expenses to pay.

Discover offers a 0% annual percentage rate for balance transfers that last between 6 and 18 months. This is another great introductory offer, so you’ll want to watch for the 18 month timeframe to avoid paying interest. Otherwise, there is no penalty for a missed payment. A 3% fee will help you avoid any late payments.

If you’re looking for a credit card that doesn’t have a foreign transaction fee, this may be a good choice. Unlike other rewards credit cards, this card doesn’t have bonus categories or rewards for purchases. But you do earn extra cash back on every transaction.

BankAmericard ®

The BankAmericard ® credit card is designed for people with fair to good credit looking for a low rate on balance transfers. In short, the BankAmericard ® card offers an introductory 0% APR for 18 billing cycles for balance transfers and new purchases on the card. After that, the variable APR of 14.49% – 24.49% will apply. This is one of the longer 0% Intro APR offers available on the market. The card has no annual fee. You can transfer a balance from any other credit on the card.

Features:

Attractive 0% Intro APR for 18 billing cycles for balance transfers and new purchases on the card

New! Pay over time with Pay Over Time, and get up to 6 months to pay.

Balance Transfers Do Not Have a Fee

Qualifications:

Regular Purchase APR

49% – 24.49%* (Variable)

Intro Regular Purchase APR

0%* for 18 billing cycles for balance transfers and new purchases.

  • After that, the variable APR will apply. 14.49% – 24.49%
  • (Variable)
  • After that, the variable APR will apply.

Purchase Intro APR

Enjoy 0% for the first 18 billing cycles for balance transfers and new purchases.

Wells Fargo Platinum Visa ®

HSBC Gold MasterCard ®

Chase Freedom Unlimited ®

The Chase Freedom Unlimited Card is a great option for people who want to get a top balance transfer card.

It isn’t such an appealing option for people who carry a balance from month to month, but it’s a good choice if you’re interested in a specific reward.

The Chase Freedom Unlimited Card allows you to earn unlimited 1.5% cash back on purchases (known as the cash back rate or the base cash back rate) with no spending cap or restrictions.

Note that the average reward rate for all Chase credit cards that participate in the 5% cash back program is only 1.5%. So this is a great reward rate for this program. But if you have a card that offers a higher reward rate on non-bonus categories, it’s not such an appealing choice.

U.S. Bank Visa ® Platinum Card

If you’re looking for a card with a 0% introductory interest rate on balance transfers, the U.S. Bank Visa ® Platinum Card could be what you’re looking for. Right now, the introductory period is 21 months, which is higher than most other credit cards.

When the 21-month period is up, your interest rate will go up to 14.24% to 21.24% based on your creditworthiness. And even if your credit score isn’t the absolute highest, this card doesn’t carry an annual fee.

The U.S. Bank Visa ® Platinum Card tracks your credit score through the Credit Steps program so that you can work to boost your credit score.

If your score is below 680, you will get some credit-building tools to help you improve your score over time. As your score improves, you can expect to earn rewards based on your credit score.

How to Perform a Balance Transfer

Traditional balance transfer cards typically charge a fee to move debt from another credit card or loan from one issuer to another. These fees range from 1% of the transferred balance to 3%. However, there are currently no balance transfer cards for 2021. This is due to the changes that have happened in the credit card industry over the past few years.

The financial crisis of 2008 caused a government intervention in the banking system. This led to the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act). This legislation brought in strict rules and restrictions in the way credit cards could be marketed and used. Although there was a push back from the industry since it curtailed their business, the reforms are finally helping consumers gain some clarity in their debt.

The following is an overview of how balance transfers work and what has changed as a result of the government’s reform.

What are Balance Transfers?

Balance transfer describes any time you transfer debt from one credit card to another. This debt could be a personal credit card or a loan from a traditional financial institution. This debt transfer is done without incurring any new charges on your current credit card.

Benefits of Balance Transfers

There could be a number of reasons you want to transfer your debt.

Lower Interest Rates

Whatever the reason, the main benefit is that the balance could be transferred to a card with a lower interest rate.

How to Make the Most out of Your Balance Transfer Offer

Have you made up your mind to transfer your credit card balance to another credit card? Well, that is a wise decision. It is quite evident that you must have already received balance transfer offers from credit card issuers.

It is true that the number of credit cards issuers have been increasing every year. Nevertheless, the competition continues to flourish among the credit card issuers to offer you an excellent deal. As a result, declining credit card offers has become a bane for both the retail and commercial banks.

Nevertheless, you must also remember that they have a motive to offer you an extraordinary deal of 0% interest on balance transfers. What that means is that they actually want you to transfer your credit card balance. In other words, they do not expect you to remain a good customer for the next 18 months.

While you may think that it is a good deal to transfer your balance, you also need to take into account your entire financial standing and not just the balance transfer offer. You also need to keep an eye on the following things in order to make the most out of your balance transfer credit card offers.

Is a Balance Transfer Card Right for Me?

If you’re planning to consolidate and pay off a lot of credit card debt, a balance transfer card can be a really good option for you.

These cards allow you to transfer a high-interest balance from one card onto a 0% card for a promotional period (usually between 15 and 21 months). After this period has passed, the promotional rate will end and your rate will increase based on the type of credit card you choose.

This period is great for getting a handle on your finances and strategically paying down debt. If you’ve just graduated college or you’ve received a big raise or a bonus, now’s the time to take advantage of the 0% rate and pay off your debt.

If you’re already carrying around a balance, think about using a balance transfer card to take advantage of the introductory period.

You may be able to shave years off your repayment schedule. Instead of racking up interest charges, you’ll be able to put those payments toward your balance.

But with so many different options on the market, you have to make sure you’re getting the best deal. If you’re curious about the best balance transfer credit cards for 2021, check out the list below!

FAQ

Q: What is a balance transfer credit card?

A: A balance transfer credit card is a card on which you transfer your existing balance on a high-interest credit card to a no-interest credit card. Balance transfer credit cards can also come with a no-interest introductory period. With the no-introductory balance transfer credit cards, there is no grace period for any new purchases. If you fail to pay off the interest before the high-interest period kicks in, you will be charged interest on the full balance.

Q: What is the best time to transfer a balance?

A: This is a tough one because it depends on how old your outstanding balance is, the interest rate on your balance, and the current interest rate on the card to which you are transferring the balance. However, the general rule is that if the card you are transferring to has a longer introductory period, then you have greater leeway to decide when you will transfer the balance. For example, if you are planning on transferring the balance right after a statement closes, and the new card offers 18 months of no-interest with no grace period, you can transfer the balance immediately while you wait for about 18 months to go by.

Q: What are the benefits of balance transfer?

Q: What happens if my balance transfer is rejected?

A: In the event your balance transfer is rejected, the credit card company will attempt to charge your account for the full balance. They will not give you another chance at a balance transfer, and your credit score will suffer. Also, if that happens, the interest rate on your old credit cards may skyrocket up to 30% and cost you even more money.

What you really need to avoid this scenario is to know which balance transfer credit cards are safer, wiser, and easier to secure.

With the regulations for new credit card offers slowly tightening, credit card issuers and lenders have come up with programs that would ease the situation.

One of the programs that has become more popular is the balance transfer credit cards.

Balance transfer credit cards allow you to transfer away to another credit card company the outstanding balance of another credit card company. This means that you don’t have to pay any interest rate on your outstanding balance.

So how does balance transfer credit cards works?

Q: Will a balance transfer affect my credit score?

What Happens When You Transfer a Credit Card Balance?

With a balance transfer, you move the balance of your high-interest credit card or charge account from one card to another card. The move allows you to pay off the old credit card balance at a more affordable interest rate.

High-interest credit card debt can quickly overwhelm your budget. Average interest rates for credit cards are well over 15 percent with many cards charging interest rates over 20 percent.

If you can manage the higher-interest debt for at least six months, you will have a better shot at lowering your interest rate. You also might qualify for a lower APR through the credit card company’s balance transfer program.

Balance transfer cards are also helpful when you need to restructure your finances. They can help you pay off a number of higher-interest accounts all at once. Balance transfer cards also give you a chance to clean up your credit report by removing negative accounts.

A credit score makes up one of the three parts of your credit report. The credit score is a number between 300 and 850 that indicates your “creditworthiness.” Lenders use your credit score to determine your future. A higher score can help you get a loan with a smaller down payment or get credit at a lower loan interest rate.