The Best 0% Balance Transfer Credit Cards

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Those who live under a mountain of credit card debt quickly realize that their suffering has two components. First there is the principal, the actual amount of goods and services that was charged to their credit card. Secondly, there are the financing charges imposed each month on their balance. With each statement cycle, their average daily balance is multiplied by one twelfth of the card's Annual Percentage Rate (APR). Therefore, if you owe $10,000 on a card with an APR of 12%, you are incurring $100 in interest each month. Due to the effect of compounding interest, the finance charges incurred each month add to your balance, resulting in more interest being accrued with each passing month.

How a Balance Transfer Works

To help relieve the burden of debt and acquire new customers, banks have long offered credit cards with a 0% promotional APR, for a limited time, on balance transfers. Applicants who qualify for a new card with these promotional rates can have their existing balance paid off by their new card. During the time that the 0% promotional rate applies, interest is not being accrued on the balance transferred; however, the amount transferred is almost always subject to a one-time balance transfer fee. This fee, typically 3%-5%, is added to the new balance. Also, cardholders are still responsible for making minimum payments on their account. New transactions may incur interest at the standard rate, although in some instances, the 0% promotional rate also applies to new purchases as well. Finally, no matter how much you are struggling with your debt, it is critical that you continue to make all of your payments on time, as only applicants with the excellent credit will qualify for most of these promotional credit card offers.

How to Save Money With a Balance Transfer

First, it is crucial that those seeking a balance transfer do so as part of a comprehensive plan to eliminate their credit card debt. Such a plan should focus on maximizing their income, minimizing their expenses, and regularly paying down their entire credit card balance before the promotional rate expires.

As part of an overall plan to eliminate debt, the benefits of a balance transfer are clear. For example, if a cardholder has an existing credit balance of $10,000 on a card with a 15% APR, that cardholder is currently accruing $125 in interest each month. If the cardholder continues to pay interest while reducing the balance by $500 each month, that person will still have accrued $1,250 of interest over the 20 months it took him to pay off the balance (15% interest applied to an average daily balance of $5,000 over 12 months). Alternatively, that person could accept a balance transfer offer of 21 months at 0% interest with a 3% balance transfer fee. In this case, that person's old balance of $10,000 will be paid off, while they will incur a new balance of $10,000 plus $300 in balance transfer fees. If all goes according to plan, at the end of the 21 months, the new balance will be paid off and the cardholder will have saved nearly $1,000 in interest.

A 0% balance transfer is not an instant solution to the problem of credit card debt. You should think of these offers as a significant push up a big mountain, but you will still have to do most of the work yourself. 

Top 0% Balance Transfer Cards on the Market

Like every aspect of the credit card industry, we are fortunate to enjoy an extremely competitive market for 0% balance transfer credit cards. None of these cards have annual fees. Here are the top offers currently available.

HSBC Gold Mastercard® credit card

📷The HSBC Gold Mastercard® credit card offers a 0% intro APR on purchases and balance transfers for the first 18 months from account opening. Then a variable APR of 12.99%, 16.99% or 20.99% will apply. This card also has no penalty APR and a late fee waiver. There are also no foreign transaction fees and no annual fee.

BankAmericard® credit card

📷The BankAmericard® credit card offers 0% intro APR on balance transfers for 18 billing cycles, one of the longest introductory periods currently offered by credit cards. This introductory rate applies to balance transfers made in the first 60 days of opening your account. After that, a standard APR for both purchases and balance transfers is 15.24% - 25.24% variable. There is a 3% balance transfer fee, minimum $10. There is no annual fee.

Citi Simplicity® Card - No Late Fees Ever

📷The Citi Simplicity® Card - No Late Fees Ever offers an intro 0% APR for 21 months on balance transfers from the date of the first transfer (all balance transfers must be completed in the first 4 months), and on purchases for 12 months from the date of account opening. After the introductory period, the regular APR will be 16.24% - 26.24% (variable), depending on your credit. There is a $5 or 5% balance transfer fee (whichever is greater). Simplicity doesn't have any cash back or points program, but it does offer no late fees or penalty interest rates, and include exclusive services like Citi Price Rewind. It also includes EMV Chip technology and is compatible with Apple Pay. There is no annual fee.

Bank of America® Cash Rewards credit card

📷The Bank of America® Cash Rewards credit cardoffers a 0% Introductory APR for 12 billing cycles for purchases AND for any balance transfers made in the first 60 days, then, 15.49% - 25.49% Variable APR. 3% fee (min $10) applies to balance transfers. You can also earn 3% cash back for gas, which is among the highest available, and 2% at grocery stores and wholesale clubs (for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter). There is no annual fee. 

Low Interest Credit Cards for Long Term Debt

Another option to save money if you have a large credit card debt is to transfer the balance(s) to a low interest credit card. This option is especially attractive if you won't be able to pay off the entire balance within the 0% intro APR period of the cards above.