Our Top-Rated Balance Transfer Credit Cards

Balance transfer credit cards can help borrowers to consolidate credit card debts by transferring them to a new card. Compare the top-rated companies to find the best choice for you.

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What is a Consolidation Credit Card?

A consolidation credit card, or a balance transfer credit card, is a line of credit allowing borrowers to pay off existing credit card balances. By transferring existing balances to a new credit card, borrowers may be able to reduce their monthly payments and simplify the repayment process.

3 Top-Rated Balance Transfer Credit Cards

Saturday, April 13th

#1
#1 Top Rated | We Recommend
RATING
8.6
Very Good
Read Our Full Review
Read Our Full Review
PROGRAM HIGHLIGHTS
  • 21-month 0% intro APR balance transfers
  • 3% balance transfer fee
  • No annual fee
#2
RATING
8.5
Very Good
Read Our Full Review
Read Our Full Review
PROGRAM HIGHLIGHTS
  • 21-month 0% intro APR balance transfers
  • 3% balance transfer fee
  • No late fees, penalty rate, or annual fee
#3
RATING
8.2
Very Good
Read Our Full Review
Read Our Full Review
PROGRAM HIGHLIGHTS
  • 21-month 0% intro APR balance transfers
  • 3% balance transfer fee
  • No annual fee

Reasons to Get a Balance Transfer Credit Card

Balance transfer credit cards can provide several benefits to borrowers. Reaons to get a balance transfer card may include:

  • Promotional 0% APR periods
  • Combining multiple credit card balances into one
  • Improving your credit utilization ratio
  • Flexible repayment plans with lower monthly payments
  • Rewards or perks like cash back or travel points

The benefits of a balance transfer credit card can vary widely based on the borrower's eligibility and the specific features offered by the credit card provider.

What Should I Look for in a Balance Transfer Credit Card?

When choosing a balance transfer credit card, it's important to consider the annual percentage rate (APR), balance transfer fees, rewards programs, customer service options, and any additional benefits that may be offered. Make sure you read the terms and conditions carefully before applying for a card. Additionally, some cards may require you to have a specific credit score or income level to qualify.

If you are getting a balance transfer credit card to save money on your existing credit cards, you'll probably want to qualify for a new card with a lower interest rate. You could also make extra payments during a 0% APR introductory period to lower the principal balance.

How Balance Transfer Credit Cards Work

Balance transfer credit cards work by allowing you to transfer existing balances from multiple credit cards onto a single card. Here's a step-by-step overview:

Once approved for a balance transfer credit card, you can work with the credit card provider to transfer balances from your existing credit cards. The outstanding amounts from these cards are consolidated onto your new card. Some balance transfer credit cards offer an introductory period with a low or 0% annual percentage rate (APR). During this period, you can potentially save on interest payments, allowing you to pay down the principal balance more quickly.

With all your balances on one card, you'll make a single monthly payment. This can simplify your financial management, making it easier to keep track of your debt and payments. It's essential to have a repayment strategy. Take advantage of the lower interest rates during the introductory period to make significant progress in paying off your consolidated debt.

Steps to Apply for a Balance Transfer Credit Card

Applying for a balance transfer credit card is a multi-step process that may include:

  1. Checking Your Credit Score: Before applying, check your credit score. While some balance transfer credit cards accept applicants with lower scores, a higher score may help you qualify for better terms.
  2. Researching Card Options: Compare balance transfer credit cards, considering factors such as introductory APR, balance transfer fees, rewards programs, and annual fees. Choose a card that aligns with your financial goals and preferences.
  3. Understanding Terms and Conditions: Carefully read the terms and conditions, including interest rates, fees, and any introductory offers. Make sure you understand the card's features and responsibilities.
  4. Completing the Application: Once you've selected a suitable card, visit the issuer's website and complete the online application. Provide accurate personal and financial information.
  5. Transferring Your Balance: After approval, initiate the balance transfer process. Provide details of the credit card accounts you want to consolidate, and typically the issuer will handle the transfers.

Balance Transfer Credit Card Interest Rates and Fees

The APR represents the cost of borrowing and varies based on your creditworthiness. During the introductory period, some cards offer low or 0% APR, which may increase after the introductory period.

Many balance transfer cards charge a fee for transferring balances. This fee is typically a percentage of the transferred amount—factor in these fees when assessing the overall cost savings.

Some balance transfer cards have annual fees. Consider whether the benefits and potential savings outweigh the annual cost of holding the card. Be aware of late payment fees. Ensure timely payments to avoid additional charges and potential impacts on your credit score.

Pros and Cons of Balance Transfer Credit Cards

Pros
  • Lower Interest Rates: Balance transfer credit cards that come with lower interest rates or an introductory period with low or no interest, could help you save on interest payments.
  • Simplified Repayment: Combining multiple debts into a single credit card could streamline your monthly payments, making managing and tracking your debt earlier.
  • Potential for Rewards: Some balance transfer credit cards offer rewards programs, allowing you to earn cash back, points, or other perks on your purchases.
Cons
  • Balance Transfer Fees: Many consolidation credit cards charge fees for transferring balances. It's crucial to consider these fees and factor them into your overall cost savings.
  • Introductory Periods: Some cards offer low or zero percent APR for an introductory period. Be aware that these rates may increase after the introductory period expires.
  • Credit Score Impact: Opening a new credit card and transferring balances may affect your credit score. However, over time, responsible management could positively impact your credit.
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