It’s 2016 in two weeks and the Federal Reserve just announced it will raise interest rates by 0.25% – the first time this has happened since 2006. Consumers who carry a balance on their credit card accounts can expect to pay more in interest charges since the APR is tied to the Prime Rate. This makes it a good time to consider transferring your high-interest balance to a new card that offers a 0% introductory APR for a specific amount of time – giving you time to pay off your balance without paying a single cent in finance charges.
After much research and debate, we’ve come up with our top picks for balance transfer credit cards. While most of them charge a balance transfer fee (usually 3% – 5%), each one offers a good opportunity to pay down (or completely pay off) high-interest debt without incurring additional interest charges.
1) Chase Slate
Chase Slate currently offers new members a 0% introductory APR for 15 months on balance transfers. After this promotional period ends, your variable APR will be 12.99%, 17.99% or 22.99% based on your creditworthiness at the time of approval. In additional, new cardholders pay no balance transfer fee during the first 60 days that your account is open. For future transactions, a fee of $5 or 3% of the total amount of the transfer (whichever is greater) will be applied to all balance transfers that post to your account.
Here are the highlights of Chase Slate:
- New members only – 0% introductory APR for 15 months on purchases (after that, a variable APR of 12.99%, 17.99% or 22.99% based on your credit)
- Free online access of your FICO Credit Score
- No penalty APR
- No annual fee
Members do not earn rewards on purchases with Chase Slate.
Citi Simplicity is a non-rewards credit card which offers new account holders a 0% introductory APR for 21 months on balance transfers when transfers are completed within 4 months from the date your account is opened. Once this time period expires, your variable APR will be 12.99%, 15.99%, 18.99%, 20.99% or 22.99% determined by your creditworthiness and other financial factors at the time of approval. A balance transfer fee of either $5 or 3% of the amount of the transfer (whichever is greater) is applied to all balance transfers that post to your account.
Here is an overview of the Citi Simplicity:
- New members only – 0% introductory APR for 21 months on purchases (after that, 12.99% to 22.99% based on your credit)
- No late fees
- No penalty APR
- Ability to choose your payment due date
- 24/7 customer service
- Smart chip technology
- No annual fee
3) Discover it
New card members can take advantage of a 0% introductory APR for 12 months on balance transfers which post to your account by March 10, 2016. Please note that it takes a minimum of 14 days to process balance transfer requests. All balance transfers are subject to a fee equal to 3% of the total amount of the transfer. After the introductory time period ends, the variable APR will be 10.99% to 22.99% based on your creditworthiness at the time of approval.
Other features of Discover it are:
- New members only – 0% introductory APR for 12 months on purchases (after this, the variable APR will be 10.99% to 22.99% based on your credit)
- 5% cash back in categories that rotate quarterly (combined purchases capped at $1,500 per quarter)
- 1% cash back on all other purchases
- No annual fee
As an added bonus, the Discover it card will double the amount of cash back earned at the end of your first year of membership.
4) Citi Diamond Preferred
Citi Diamond Preferred offers members solid benefits including VIP Treatment and a 0% introductory APR for 21 months on balance transfers. Balance transfers must be completed within four months from when your account is opened to qualify for the promotional rate. A balance transfer fee of $5 or 3% of the total amount of the transfer (whichever is greater) is applied to any balance transfer that posts to your account. After this time, your variable APR will be 11.99%, 14.99%, 17.99%, 19.99% or 21.99% and is determined by your creditworthiness at the time of approval.
Highlights of Citi Diamond Preferred are:
- New members only – 0% introductory APR for 21 months on purchases (thereafter, a variable APR of 11.99% to 21.99% will apply)
- 24/7 access to personalized concierge service for assistance in booking hotels, flights and concert tickets
- Special access to ticket pre-sales, preferred seating and unique entertainment experiences
- 0% liability on unauthorized charges
- No annual fee
This is not a rewards credit card so members do not earn cash back, miles or points on purchases.
Chase Freedom is a cash back rewards card which also offers new members a 0% introductory APR for 15 months on balance transfers. After this promotional period expires, the variable APR will be 13.99%, 18.99% or 22.99% based on your creditworthiness at the time you are approved. A balance transfer fee of $5 or 3% of the amount of the transfer (whichever is greater) will be applied to any balance transfer that posts to your account.
The following benefits also come with Chase Freedom:
- New members only – 0% introductory APR for 15 months on purchases (after this, the variable APR will be 13.99% to 22.99% depending on your credit)
- New members only – Earn a $150 Bonus after spending $500 on eligible purchases in your first three months from account opening
- New members only – Earn a $25 Bonus after adding your first authorized user and making a purchase of any amount within the first three months of having your card
- 5% cash back on up to $1,500 in combined purchases in bonus categories which change each quarter (activation required)
- 1% cash back on all other purchases (unlimited)
- Rewards do not expire as long as your account remains open and in good standing
- No annual fee