Best Balance Transfer Credit Cards of September 2023

Balance transfer credit cards are cards that can receive balance transfers -- a feature not offered by all credit cards. It's best for those with good credit who want a lower interest rate or to consolidate debt.

These types of credit card transfers offer a low introductory APR. The best balance transfer credit cards even start with an intro 0% APR. Pay off what you owe before the intro period ends, and you can avoid interest fees entirely.

Comparing balance transfer offers

The three main points you should look at when comparing balance transfer cards are:

• The intro APR offer: This tells you how long you'll enjoy the 0% APR on your transferred balance. If you know you'll need a long time to pay off your balance, look for the longest introductory term you can find.
• The go-to or standard APR: Once your introductory rate expires, your remaining balance will start accruing interest at the standard APR. This factor becomes important if you think you won't be able to pay off your entire transferred balance before the intro offer ends.
• The balance transfer fee: Not only do you have to consider the transfer fee in terms of the fee itself -- lower fees are always better -- but the balance transfer fee will also reduce the total amount you can transfer.

One thing you don't need to consider are the rewards. You won't earn rewards on transferred balances, and balance transfers won't count toward any kind of welcome or sign-up bonus requirements.

Check out the table below to quickly compare some of our favorite balance transfer cards:

Best transfer credit card

Our top pick overall for balance transfer credit cards is the Discover it? Balance Transfer. It is a purpose-built card with a great intro 0% balance transfer APR offer that lasts 18 months (then the go-to 17.24% - 28.24% Variable APR applies). It even has a competitively low 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*.

Additionally, you have a generous window to transfer your balance (see the date in your card's terms). With some cards, you need to transfer any balances within the first 60 days of account opening for them to be eligible for the zero interest offer. Balances transferred after the eligibility period won't qualify for the intro 0% APR.

That said, 60 days is probably plenty of time for most cardholders, as balance transfers are typically made after you already have accrued some card debt. If you're looking to save on interest for an upcoming purchase, check out cards with an intro 0% APR offer on new purchases.

Learn more: Best 0% intro APR cards

It's important to consider the benefits and drawbacks of doing a balance transfer with a balance transfer credit card. While the best balance transfer credit cards can save you hundreds in interest, they can also end up costing you.

A balance transfer credit card is a good idea if:

• You want a lower interest rate. The biggest perk of 0% APR balance transfer credit cards is how much money they can save you. If you have credit card debt that you'll be paying off over six months or longer, then a balance transfer could lead to big savings.
• You want to consolidate debt. When you have debt spread out across multiple credit cards, it can be difficult to manage. The best balance transfer cards allow you to consolidate debt so you only need to make one payment per month.
• You're trying to boost your credit score. Credit card debt often results in a high credit utilization ratio, a factor that has a big impact on your credit score. Since opening a balance transfer card adds to your total credit, it will lower your credit utilization. That balance transfer could save you money and raise your credit score.

A balance transfer credit card is not a good idea if:

• You don't have a plan to pay off your debt. A balance transfer only helps if you take advantage of the opportunity by paying off as much debt as possible before the intro APR period ends, and you don't overspend now that your debt isn't costing you any interest. Otherwise, you could reach the end of the intro period with the same amount of debt or more. Use our balance transfer calculator to see how much you could save with a balance transfer.
• You have subpar credit. To qualify for the top balance transfer credit cards, you'll typically need good credit. If your credit is bad or average, it's a good idea to focus on building your credit. That way you don't need to settle for a subpar balance transfer card.
• You could pay off existing credit card debt within a few months. When you're this close to paying off your debt, it's usually better to stick with your current credit card. A balance transfer fee could wipe out anything you'd save on interest. Even if it's a balance transfer credit card with no fee, the credit card application will still take time and cause a small dip in your credit score.

Savvy consumers use credit card balance transfer offers to refinance or consolidate credit card debt. And when used correctly, the best balance transfer credit cards can save you hundreds of dollars in interest. To get the best credit card balance transfer offers, it helps to understand how balance transfers work.

Here are the three steps on how to do balance transfers:

1. Search for one of the best balance transfer credit cards. Try to find a card with a long enough intro period so that you'll be able to pay off your debt within that time frame.
2. Open the card and transfer the balance. You'll need the credit card number of the card with the balance as well as the amount to transfer. Most card issuers let you transfer balances online. So you'll log in to the account for your balance transfer card and look for the balance transfer option. Alternatively, you can call the credit card company and do the balance transfer by phone.
3. Make your payments. You're still required to make payments on the original card until the balance transfer is processed. You'll know that has happened once the original card balance changes. From this point on, you'll make payments on the balance transfer card.

Balance transfers can hurt and help your credit. When you use a balance transfer card, it affects three factors used to calculate your credit score:

• New credit (10% of your FICO? Score): The credit card application will cause a hard credit inquiry, which negatively affects the new credit category. It's not a serious issue, though, as most consumers only see their FICO? Scores drop five points or less from a hard inquiry.
• Length of credit account history (15% of your FICO? Score): A new credit card causes your average length of credit account history to decrease, and this can hurt your credit.
• Credit utilization (30% of your FICO? Score): Your new balance transfer card's credit limit will increase your total credit, causing your credit utilization to go down. That's good for your credit score. But your credit utilization on each individual card is also important. If you end up with high credit utilization on the balance transfer card, then that could have a negative impact.

Although your credit score may or may not drop after a balance transfer, it will likely go up as you pay down your credit card debt. After all, building a positive payment history is one of the best ways to rebuild credit. And balance transfer credit cards allow you to do that faster while also saving on interest.

A balance transfer credit card moves a balance from one account to another. Once you've completed a balance transfer, the original account is paid off, and you make payments on the account that received the transfer.

You're essentially using the balance transfer card to pay off your debt. The best balance transfer credit cards come with a 0% introductory APR -- similar to 0% intro APR credit cards -- on a qualifying balance transfer. This means that you won't pay credit card interest on the balance transferred for the intro period, which can be anywhere from a few months to 20 or more billing cycles. After the introductory APR ends, the card issuer will start charging the card's regular variable APR on any remaining balance. Paying off your balance quickly will help you avoid getting an interest charge when the intro APR period ends.

The type of debt you can transfer depends on your balance transfer card.

Sometimes a card issuer only allows a credit card transfer of balances, whereas others let you transfer all kinds of debt. Consumers typically use balance transfer cards for credit card debt.

The total amount of the transfer, plus any balance transfer fees, must be less than the balance transfer card's credit limit. If it isn't, you'll find your balance transfer denied. You can't do a credit card transfer between two cards from the same card issuer, either. A balance transfer from a Chase credit card to a Citi credit card is fine, but a transfer between two Chase credit cards wouldn't be allowed.

Balance transfer fees

A balance transfer fee is an extra fee charged by the receiving credit card -- the card you're transferring to -- to process the balance transfer. Typical balance transfer fees range from 3% to 5% of the total amount transferred.

The transfer fee is generally added to your overall credit card balance. For example, if you transfer $1,000 to a credit card with a 3% balance transfer fee, you'll be charged an extra $30. Your new balance on the balance transfer card will be $1,030. In other words, you need to consider the transfer fee when determining how much you can transfer to a new card, since your total balance -- including the fee -- cannot exceed your credit limit.

In addition to an introductory 0% APR, many of our favorite balance transfer cards also come with a promotional balance transfer fee. A fee drop from 5% to 3% can save you $20 per $1,000 transferred, so these promotional rates can be a big money saver.

If you're not sure that a 0% APR balance transfer credit card is the best option for you, consider these alternatives:

1. Personal loans for debt consolidation

By paying your debts with a personal loan, you'll have a fixed loan term, payment amount, and interest rate. Consolidating debt is a great way to ensure you can afford your monthly payments and get your debt paid off in full. Even though debt consolidation loans don't offer 0% intro APRs, you can find personal loans with low interest rates. You also won't need to worry about the APR going up like it does with balance transfer cards at the end of the intro period.

2. Home equity loans/home equity lines of credit

Since a home equity loan or a home equity line of credit (HELOC) uses your home as collateral, they tend to offer some of the lowest interest rates you can find. Either is an affordable way to pay off debt, but you will need equity in your home to qualify. The fact that your home is the collateral also adds to your risk.

3. Nonprofit credit counseling agencies

When you work with a credit counseling agency, it can give you advice on how to budget and pay back your debts. A credit counseling agency can also negotiate a debt management plan with your creditors. This option can be especially helpful if your credit isn't the best, as it's hard to find balance transfer credit cards for bad credit.

4. Negotiating your credit card debt

Credit card companies are often willing to negotiate your credit card debt with you if you're having trouble making your monthly payments. Some might even have low interest credit cards you can consider. Many offer hardship plans that can reduce your card's interest rate, fees, or minimum payment amount. Even if your card issuer doesn't, you may still be able to negotiate any of those items.