The best credit cards for balance transfers share several key features. To choose a balance transfer credit card that fits your unique financial situation, consider the following five questions:
What are your approval odds?
Like any other credit card application, a balance transfer card application will result in either approval or denial. If you’re denied a balance transfer card, you may be concerned about the short-term effects on your credit score. Consider if it’s worth applying and undergoing a hard credit pull if you are unsure of your approval chances.
Learn more: Why Approval Odds are your key to a successful credit card application
How long is the balance transfer window?
A good balance transfer card will allow you to make transfers within a generous window of time after the opening of your account. Some cards give you 90 days from account opening to qualify for the 0 percent intro APR period, while other cards have a longer or shorter window. It's important to consider this when choosing your card because you want to be sure that you can manage to make all of your payments on time and avoid paying any interest on your transferred balance after the introductory period.
Does the card have a long introductory APR offer?
It's crucial to figure out what kind of APR you'll face after the introductory period ends. Interest rates vary widely, and knowing exactly what you're signing up for is helpful. Also, if you plan on carrying a balance on your card after the 0 percent intro APR period, make sure that you calculate what the minimum payment amount will be — as you don't want to be surprised by unexpected fees or expenses. If you pay off your balance before the end of the 0 percent intro APR, there's no harm done, but if you don't and you're stuck paying 19.99 percent interest on your balance, for example, you'd be better off applying for a different card with a lower rate.
Does the card have a low interest rate after the 0% intro APR period?
It's crucial to figure out what kind of APR you'll face after the introductory period ends. Interest rates vary widely, and knowing exactly what you're signing up for is helpful. Also, if you plan on carrying a balance on your card after the 0 percent intro APR period, make sure that you calculate what the minimum payment amount will be. You don't want to be surprised by unexpected fees or expenses.
If you pay off your balance before the end of the 0 percent intro APR, there's no harm done, but if you don't and you're stuck paying 19.99 percent interest on your balance, for example, you'd be better off applying for a different card with a lower rate.
What are the card’s fees?
To learn more about the card’s fees, the terms and conditions will include details such as the balance transfer fee, late payment penalties, how much time you have to transfer the balance to qualify for the introductory offer and what happens when your 0 percent intro APR period ends. If the card has an annual fee or a balance transfer fee higher than 3 percent, it's worth considering whether you'd be better off sticking with your current card and making minimum payments until your debt is paid off. Though an annual fee may be worthwhile in return for high rewards rates and access to exclusive cardholder benefits, if your primary goal is to get out of debt then it's best to avoid rewards or cash back credit cards that may encourage unnecessary spending. Likewise, credit cards with annual fees will reduce the amount of money you could be putting toward repayments.
Does the card have long-term value?
Some of the best balance transfer cards offer general benefits to cardholders, such as extended warranties on purchases and identity theft protection services, as well as rewards programs that can help offset interest payments or provide additional discounts or savings on purchases. If you want to use your card for daily purchases like gas or groceries, you may be able to earn points or miles that may be redeemed for gift cards, statement credits or more.
You can search for preapproval options using tools like CardMatch™ by Bankrate and get a glimpse of what you could feasibly be approved for without the consequences of a hard credit pull.
