Balance Transfer Credit Cards

When you're looking to transfer a balance from a credit card with a high interest rate to a card with less or no interest, a balance transfer credit card will suit your needs. A balance transfer credit card often has no annual fee and a very low introductory APR on balance transfers.

A balance transfer credit card might offer you a 0% or slightly higher interest rate on a balance transfer from another card. By transferring the balance to the new credit card, you're able to pay down the total more significantly with the same monthly payment as well as close out the card with the higher interest rate.

Introductory periods range from a few months to over a year with some credit cards offering low interest rates for the life of the balance. There is a fee charged, usually a capped percentage of the balance transferred, but the interest savings over a longer period of time far outweighs this fee. If the balance transfer allows you to pay off or significantly pay down the total amount, the fee is simply an opportunity cost.