If you are looking to transfer a balance from a high-interest credit card to a card with a lower interest rate, a balance transfer credit card may be a good option for you. These credit cards offer a introductory period of 0% APR on balance transfers, allowing you to pay off your balance without accruing additional interest. This can be a great way to save money on interest and pay off your debt faster.
There are several balance transfer credit cards that offer 0% APR on balance transfers, but it’s important to compare the terms and fees of different offers to find the one that’s best for you. In this article, we will review some of the best balance transfer credit cards with 0% APR to help you make an informed decision.
What is APR?
APR stands for annual percentage rate. It is a measure of the cost of credit, expressed as a yearly interest rate. The APR takes into account the interest rate, as well as any fees or other charges associated with the loan.
The APR is designed to help consumers compare the costs of different credit products, such as credit cards, personal loans, and mortgage loans. It provides a more complete picture of the cost of borrowing than the interest rate alone, as it includes any fees or other charges that may be associated with the loan.
For example, if you are considering two credit cards, one with a lower interest rate but higher fees, and one with a higher interest rate but lower fees, the card with the lower APR may be the better option. This is because the APR includes both the interest rate and the fees, so it gives a more accurate comparison of the total cost of borrowing.
Best balance transfer credit cards
There are several credit cards that offer 0% APR on balance transfers. Here are a few options to consider:
- Chase Freedom Unlimited: This card offers a 0% intro APR on balance transfers for the first 15 months from account opening. After that, a variable APR applies. There is a balance transfer fee of 3% for transfers made within the first 60 days of account opening, and a balance transfer fee of 5% for transfers made after the first 60 days.
- Citi Simplicity: This card offers a 0% intro APR on balance transfers for the first 18 months from account opening. After that, a variable APR applies. There is a balance transfer fee of 5% of the amount transferred, with a minimum fee of $5.
- Discover it Balance Transfer: This card offers a 0% intro APR on balance transfers for the first 18 months from account opening. After that, a variable APR applies. There is a balance transfer fee of 3% of the amount transferred.
It’s important to note that balance transfer credit cards often come with fees, so it’s important to compare the fees and terms of different offers to find the one that’s best for you. It’s also important to pay off your transferred balance before the intro period ends, as the APR will typically increase significantly after the intro period ends.
Benifits of balance transfer credit cards
There are several benefits to using a balance transfer credit card:
- Save money on interest: By transferring your balance to a card with a 0% APR on balance transfers, you can save money on interest and pay off your debt faster.
- Consolidate debt: If you have multiple credit card balances with high interest rates, a balance transfer credit card can help you consolidate your debt onto a single card with a lower interest rate. This can make it easier to manage your debt and keep track of your payments.
- Improve credit score: By paying off your debt and reducing your credit utilization (the amount of credit you are using compared to your credit limit), you can improve your credit score. This can be especially beneficial if you have high balances on multiple cards, as it can lower your overall credit utilization.
- Flexible repayment options: Many balance transfer credit cards offer flexible repayment options, such as the ability to set up automatic payments or choose your own payment due date. This can make it easier to manage your debt and make timely payments.
It’s important to note that balance transfer credit cards often come with fees, so it’s important to compare the fees and terms of different offers to find the one that’s best for you. It’s also important to pay off your transferred balance before the intro period ends, as the APR will typically increase significantly after the intro period ends.