If you’re carrying high-interest credit card debt, a balance transfer credit card might be the tool you need to get back on track financially. In this guide, we’ll explain how balance transfer cards work, highlight key pros and cons.
✅ What Is a Balance Transfer Credit Card?
A balance transfer credit card allows you to move existing credit card debt from one account to another. The primary goals are:
- Consolidation: Combine multiple debts into one card, simplifying your payments.
- Interest Savings: Most of these cards offer a 0% intro APR for a set period—typically 12 to 21 months.
✅ Example: Instead of paying 25% APR on $10,000, you could transfer the balance and pay zero interest for a year—only a one-time transfer fee.
💸 How Much Does a Balance Transfer Cost?
Balance transfers aren’t free—but they can be cost-effective.
- Typical balance transfer fee: 3–5% of the amount transferred
- For every $1,000, you might pay $30–$50 in fees
- Compare that to the average interest rate of 23.37% (as of August 2024)
📌 Tip: If you’re confident you can repay your debt quickly (in under 6 months), it might make more sense to skip the fee and pay off your current balances instead.
⚠️ Common Mistakes to Avoid
Here are some balance transfer credit card pitfalls you should steer clear of:
- Missing a Payment: One late payment can void the 0% intro APR offer.
- Overestimating Credit Limits: You may not be approved to transfer your full debt if it exceeds the card’s limit.
- Repeated Transfers: You can’t endlessly shuffle debt. These cards are tools for repayment, not avoidance.
🏆 Best Balance Transfer Credit Cards of 2025
Here are NerdWallet’s top picks based on card features, fees, and credit score accessibility:
1. Discover it® Cash Back
- Intro APR: 0% on balance transfers for up to 18 months
- Annual Fee: $0
- Balance Transfer Fee: 3% (intro), then 5%
- Bonus: Unlimited cashback match at the end of your first year
- Recommended Credit Score: 690+
2. Citi® Double Cash Card
- Intro APR: 0% for 18 months (on balance transfers)
- Annual Fee: $0
- Rewards: 2% cash back on new purchases
- Good Fit: For those with credit scores starting around 630+
- Note: 0% intro APR does not apply to new purchases
3. BankAmericard® Credit Card
- Intro APR: 0% on both balance transfers and new purchases
- Annual Fee: $0
- Unique Feature: Free FICO score access
- Drawback: No cashback or rewards program
4. Navy Federal Platinum Credit Card
- Intro APR: Low ongoing interest rate (not 0%)
- Annual Fee: $0
- Eligibility: Must be a Navy Federal Credit Union member
- Best For: Those who prefer low fees and belong to NFCU
🏅 5. Citi® Simplicity® Card – NerdWallet’s Best Overall
- Intro APR: 0% for up to 21 months on balance transfers
- Annual Fee: $0
- Perks:
- No late fees
- No penalty APR
- Citi Quick Lock for card security
- Ideal For: Long-term planners seeking maximum interest-free repayment time
📊 How These Cards Were Chosen
NerdWallet’s team of 11 experts reviewed over 300 credit cards and spent 91 hours comparing features, fees, and benefits. Collectively, their team holds more than 192 years of financial experience, ensuring credibility and accuracy in their picks.
🧠 Final Thoughts: Is a Balance Transfer Right for You?
Balance transfer credit cards can be an excellent strategy to tackle debt—if used responsibly. They work best for:
- People with good to excellent credit (670+)
- Those with a plan to pay off the balance before the intro period ends
- Individuals looking to avoid interest and consolidate debt
💬 Pro Tip: Always compare the transfer fee to your current interest rate—if the savings outweigh the cost, it’s likely a good move.
🔗 Read More & Apply
Want to compare offers in real-time? Check out NerdWallet’s for 2025 and start saving on interest today.