Best Credit Cards with 0% Intro APR on Balance Transfer from Our Partners

01. What is a balance transfer?

With a balance transfer, you are literally moving your balance from one card to another, usually with a lower or 0% introductory interest rate. You can use a 0% intro APR offer to pay off that debt from the holidays, a large purchase, or a high-interest card. You might want to transfer balances when an introductory period on one card ends in order to extend the benefits of low interest.

You also may want to consolidate debt by moving multiple credit card balances to one card, so you have fewer bills to pay each month. If your credit limit allows you to accommodate your combined balances, it will make your life simpler and your credit card balance easier to pay off.

02. Cost of a balance transfer

Nearly all balance transfer cards require a 3%-5% balance transfer fee. The most common balance transfer fee is 5% of the amount transferred. And a rarely offered, but desired by all - a $0 balance transfer fee.

No fee balance transfer credit cards are offered by a few issuers and may have some additional requirements. In most cases, you will need to complete a balance transfer within an allotted period of time to be able to qualify for the $0 balance transfer fee. But in general, $0 balance transfer fee credit cards most likely will not offer 0% intro APRs on balance transfers.

03. Balance transfer rules

While it is rather easy to transfer balances between two credit cards, there are some nuances you should know about how to make the transaction a success.

- Balance transfers between credit cards from one bank are not allowed. Even if they're co-branded credit cards.

- It takes up to 14 days on average to complete a balance transfer.

- You cannot transfer more than the available credit limit on your new balance transfer credit card. If you try to do that, your transfer will be canceled, or a lower amount will be transferred.

- Balance transfer does not close or cancel your old credit accounts from which you transfer. You will still need to make all minimum monthly payments on all cards while you are transferring and when the transfer is completed until you close those cards.

- There usually is a 3%-5% balance transfer fee that is added to the transferred amount.

- If you do not pay off the transferred balance by the end of the introductory period, a go-to APR will apply to the remaining balance.

- If you make a late payment or miss a payment, you may lose your 0% intro APR and the issuer can charge you a late payment fee and apply a penalty interest rate to the remaining balance.

- Some issuers may require you to complete all balance transfers within a certain period in order to qualify for the 0% intro APR offer.

- Balance transfers won't earn rewards. But a balance transfer credit card can have a solid rewards structure, which makes it more attractive to hold long-term.

04. Do balance transfers affect your credit?

When you pay off your credit card debt, you can increase your credit scores. Since your credit utilization makes 30% of your score, the less you owe, the better. However, a balance transfer can do both: hurt and help your credit. But in the end, a balance transfer may improve your credit and get you higher credit scores.

Your credit scores may drop by a few points when you apply for a balance transfer credit card and then perform a balance transfer. For example, if you are approved for a credit card with the starting credit limit of $3,000 and transfer that same amount, you'll be using 100% of your available credit on that card. Experts recommend keeping your credit utilization below 30% for each individual active credit line and overall. If you close your old credit account, your ratio will become even higher, which can result in a credit score drop

To minimize damage to your credit score, keep your existing credit accounts active (at least for a while, until you see your credit score going up). Be very careful when you want to close your old credit account. If you close your oldest account, that may have a significant effect on the length of your credit history and as a result, on your credit score.

As you pay off the balance on your new balance transfer credit card, you should see your credit score going up. Try not to change purchases to your new credit card. Focus on paying off your debt and not increasing it and then the balance transfer will become that tool for improving your financial position and net you a higher credit score.