Money
Best Balance Transfer Credit Cards of August 2024
A balance transfer credit card can be a powerful tool for managing and reducing debt. By transferring high-interest balances to a card with a 0% introductory APR, you can save on interest and pay off your debt faster. This guide will help you understand the benefits of balance transfer cards and present some of the best options available in August 2024.
How Balance Transfer Credit Cards Work
Balance transfer credit cards offer an introductory period with 0% APR on transferred balances. This allows you to pay down your debt without accruing additional interest during the promotional period. To take full advantage of this, it’s important to pay off as much of the balance as possible before the introductory period ends.
U.S. News’ Best Balance Transfer Credit Cards of August 2024
Citi® Diamond Preferred® Card
Best Feature: 21-month 0% introductory rate on balance transfers.
Credit Needed: Excellent, Good (670-850)
Intro Bonus: 0% Intro APR for 21 months on balance transfers and 0% Intro APR for 12 months on purchases. Balance transfers must be completed within 4 months of account opening.
Annual Fee: $0
Regular APR: 18.24% – 28.99% Variable
Benefits:
- Long introductory period for balance transfers and purchases.
- No annual fee.
Wells Fargo Reflect® Card
Best Feature: Lengthy low introductory APR.
Credit Needed: Good to Excellent (670-850)
Intro Bonus: N/A
Annual Fee: $0
Regular APR: 18.24%, 24.74%, or 29.99% Variable
Benefits:
- Long introductory period on purchases and balance transfers.
- No annual fee.
Citi Rewards+® Card
Best Feature: Two points per dollar spent at gas stations.
Credit Needed: Excellent, Good (670-850)
Intro Bonus: Earn 20,000 bonus points after spending $1,500 in the first 3 months.
Annual Fee: $0
Regular APR: 18.74% – 28.74% Variable
Benefits:
- Rounds up to the nearest 10 points on every purchase.
- No annual fee.
Citi Double Cash® Card
Best Feature: 18-month 0% introductory rate on balance transfers.
Credit Needed: Excellent, Good, Fair (580-850)
Intro Bonus: Earn $200 cash back after spending $1,500 in the first 6 months.
Annual Fee: $0
Regular APR: 19.24% – 29.24% Variable
Benefits:
- Earn 2% cash back on purchases (1% when you buy and 1% when you pay).
- No annual fee.
Maximizing Your Savings
To maximize the benefits of a balance transfer card, follow these tips:
- Transfer High-Interest Balances: Move your highest interest balances first to save the most on interest.
- Pay Off Debt Within the Introductory Period: Aim to pay off as much of your debt as possible before the 0% APR period ends.
- Avoid New Purchases: Focus on paying down your transferred balance instead of adding new charges to the card.
FAQs
- What is a balance transfer credit card?
- A balance transfer credit card allows you to transfer existing high-interest debt to a new card with a lower or 0% introductory APR for a set period.
- How do I choose the best balance transfer card?
- Look for a card with a long 0% APR period, low or no balance transfer fees, and favorable terms after the introductory period ends.
- Can I transfer balances from any credit card?
- Most credit card issuers allow transfers from other banks, but not from cards issued by the same bank. Check the terms of your balance transfer offer.
- Are there fees for transferring a balance?
- Many cards charge a balance transfer fee, typically 3% to 5% of the amount transferred. Some cards offer no-fee transfers during promotional periods.
- Will transferring a balance affect my credit score?
- A balance transfer can temporarily impact your credit score due to the hard inquiry when you apply for a new card and changes in your credit utilization ratio.
For more detailed information and to compare the best balance transfer credit cards, visit U.S. News Balance Transfer Credit Cards.
Choosing the right balance transfer credit card can help you manage debt more effectively, reduce interest payments, and improve your financial health. Apply today and start taking control of your debt!
