Top Balance Transfer Credit Cards for 2020
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Balance transfer credit card offers have been flooding the market for some time, giving consumers with an excellent credit score the opportunity to save some money. Issuers are offering cards with a 0% APR for 12 to 21 months on the amount you transfer from one card to another. In some cases, you may even receive 0% APR on your purchases for that time period.
Transferring a balance from one credit card issuer to another can be beneficial. Cardholders have the chance to consolidate their debt and possibly save a substantial amount in interest penalties.
But balance transfers do come with some risks:
- It usually costs money to transfer a balance from one card to another. Typically, you’ll pay a 3% balance transfer fee but some issuers charge 5%. Before applying for a balance transfer, you need to do the math to compare your current interest costs to the combined cost of the new card’s APR and the balance transfer fee (which is charged up front).
- Pay attention to the ongoing interest rate you will pay after the introductory rate expires, especially if you don’t think you can pay off the entire balance during this introductory period.
- If you do not have a good credit score, chances are you may not get the advertised introductory offer. You may receive a higher ongoing APR, a shorter introductory period, or the issuer may not allow you to transfer your total balance.
- It is crucial to pay your credit card bill on time every month. If you are late on a payment, your introductory period is likely to end immediately and you’ll be paying the ongoing APR on the balance that you transferred.
- The 0% introductory APR may only apply to the transferred amount, not future purchases. Check the terms and conditions of the card to see if the introductory offer includes new purchases. If not, any purchase made with the new card will be at the ongoing interest rate.
Here are some of the top balance transfer credit cards for 2020:Citi Simplicity® Card – No Late Fees Ever has one of the industry’s best introductory offers in terms of APR. The Citi Simplicity card has a 0% introductory APR for 12 months on purchases, and for 21 months on balance transfers that are made in the first four months of being a cardholder. Subsequently, there will be an ongoing APR between 16.24% - 26.24% (Variable). There is a 5% balance transfer fee. This card is rather unique in the industry in that it has no annual fee, no late fee and no penalty rate.
Citi® Diamond Preferred® Card has the same attractive introductory APR as the Citi Simplicity card. The 0% introductory APR is for 21 months on balance transfers (must be made within the first four months of card membership) and 12 months on purchases. Then, an ongoing APR between 15.24% - 25.24% (Variable) depending on your credit worthiness. There is no annual fee on this card but there is a 5% balance transfer fee on the amount transferred. The Citi Diamond Preferred card has a very attractive perk for the frequent traveler: 24/7 concierge service to help book your hotel rooms, flights and other travel details.
Capital One® Quicksilver® Cash Rewards Credit Card offers a very attractive 15 month introductory offer where cardholders receive 0% APR on both purchases and balance transfers. In addition, the card has some other features that make it one to seriously consider. You receive 1.5% back on all transactions with no limit and no annual fee. Like all Capital One cards, there are no foreign transaction fees. There is a 3% balance transfer fee. You also receive a $150 bonus once you spend $500 during the first three months of being a cardholder. The ongoing APR is 15.49% - 25.49% (Variable). Applicants need only good credit, not excellent credit.
Citi® Double Cash Card – 18 month BT offer is is one of the best cash back cards on the market, but also one of the more attractive balance transfer cards. New cardholders receive 0% APR for 18 months on balance transfers if the balance transfer is made within the first four months of being a cardholder. Then the APR will be 15.49% - 25.49% (Variable) based on your creditworthiness. There is a 3% balance transfer fee. Cardholders earn some significant cash back on their purchases with this card: 1% cash back when you buy, and an additional 1% as you pay for those purchases, for a total of 2%. Please note that balance transfers do not earn cash back rewards. There is no annual fee on this card.
Chase Freedom Unlimited® is a wonderful cash back card, especially for those consumers who do not want to keep track of rotating bonus categories that they have to register for each quarter. The Freedom Unlimited card has an attractive cash back structure: an unlimited 1.5% cash back on all purchases. New applicants also receive a 0% APR for 15 months on both new purchases and balance transfers, with a 3% balance transfer fee or $5, whichever is greater during the first 60 days of being a cardmember; then a 5% balance transfer fee or $5 whichever is greater. Once the promotional financing rate expires, the standard interest rate of 16.49% - 25.24% Variable applies, depending on your creditworthiness. There is no annual fee for this card.
Capital One® SavorOne® Cash Rewards Credit Card is marketed to foodies—people who love dining out or creating meals at home. Cardholders earn 1% cash back on all purchases, but the rewards are particularly good on dining out and entertainment (3% cash back) and grocery store purchases (2% cash back). New SavorOne cardholders receive a $150 cash bonus when they spend $500 within the first three months of being a card member. The SavorOne card has an APR of 15.49% - 25.49% (Variable), depending on the cardholder’s credit. It has no annual fee and no foreign transaction fees. There is a nice introductory offer of 0% APR for 15 months on both purchases and balance transfers.