Credit card debt can be a significant burden, especially with high interest rates, which, as of July 2025, average around 20.13% according to Bankrate (and even higher for subprime borrowers, according to other sources like SoFi, where the average is 21.47% as of early 2024). These high interest charges can make it difficult to pay off debt, as a substantial portion of your monthly payment goes towards interest rather than the principal.
A balance transfer credit card offers a temporary solution by allowing you to move existing debt from one or more credit cards to a new card that provides a 0% introductory APR for a limited time, typically ranging from 12 to 21 months. This strategic move can help you save a significant amount of money on interest and accelerate your debt repayment.
How Much Can You Save?
Consider a scenario where you have a $5,000 balance with a 16.28% APR (though current averages are higher, this example uses the provided figure). If you pay $200 monthly, it would take you 31 months and cost $1,149 in interest to pay off.
However, if you transfer this $5,000 balance to a card with an 18-month 0% APR (and assuming a 3% balance transfer fee, or $150), your total principal becomes $5,150. If you continue paying $200 per month, you would pay off a substantial portion of the debt within the intro period. In the example provided, with a U.S. Bank Visa® Platinum Card’s 0% APR for 18 billing cycles, maintaining a $200 monthly payment, you could save approximately $956 and pay off your debt five months faster, incurring only about $193 in interest and fees (including the $150 transfer fee and some interest if the balance isn’t fully paid by the end of the intro period).
How to Choose the Best Balance Transfer Card
While balance transfers can be straightforward, careful consideration is key:
- Review Credit Requirements: Most attractive balance transfer offers require good to excellent credit (typically a FICO score of 670 or higher). If you have bad credit (FICO score below 670), qualifying for a competitive balance transfer card can be difficult, and you might need to consider alternatives like a personal loan or focus on building your credit first.
- Understand the Terms: Before applying, thoroughly review the offer’s terms. Key elements include:
- Balance Transfer Limits: The maximum amount of debt you can transfer.
- Length of 0% Intro APR: How long the promotional period lasts. Longer periods provide more breathing room.
- Timeframe to Transfer Debt: Many cards require balances to be transferred within a specific window (e.g., 60 or 120 days) from account opening to qualify for the intro APR.
- Standard APR: The interest rate that applies to any remaining balance after the introductory period.
- Balance Transfer Fee: The percentage charged on the transferred amount (usually 3% to 5%). Calculate this fee to ensure the savings on interest outweigh the cost.
- Assess Any Fees: While most balance transfers have fees, some rare “no-fee” balance transfer cards exist, often offered by credit unions or smaller regional banks (e.g., Wings Visa Platinum Card, Navy Federal Credit Union® Platinum Credit Card). However, these might have shorter intro APR periods or membership requirements. Always compare the fee against your potential interest savings.
Best Balance Transfer Cards
While specific recommendations change over time, many top balance transfer cards prioritize either a very long intro 0% APR period or a combination of an intro APR with rewards. Cards like the Wells Fargo Reflect® Card are often highlighted for their long intro APR periods (up to 21 months), while cards like the Citi Double Cash® Card might offer a slightly shorter intro period (e.g., 18 months) but also provide cash back rewards on purchases.
Important Note: As per the provided information, personal and small business cards issued by U.S. Bank (including the U.S. Bank Visa® Platinum Card mentioned in the example) are currently not available on CNBC Select, and links have been redirected to their credit card marketplace for offers from other issuers. Similarly, the Aspire Platinum Mastercard® is no longer available. Always verify current card availability and terms directly with the issuer.