What are The best balance transfer credit cards of 2023? In today’s fast-paced world, many people are carrying high-interest debt on their credit cards. If you are in this situation, you may want to consider a balance transfer credit card.
These types of credit cards allow you to transfer your high-interest debt from one credit card to another with a lower interest rate. This can help you save money on interest and pay off your debt faster. In this article, we will explore the best balance transfer credit cards of 2023.
How Balance Transfer Credit Cards Work
Balance transfer credit cards work by allowing you to transfer your high-interest debt from one credit card to another credit card with a lower interest rate. This can be done by following a few simple steps. First, you need to apply for a balance transfer credit card. Once you are approved, you can then transfer your balance from your old credit card to your new credit card.
This is typically done online or over the phone. Finally, you will need to pay off your debt on your new credit card before the introductory period ends to take full advantage of the lower interest rate.
The benefits of balance transfer credit cards are clear. They can help you save money on interest and pay off your debt faster. In addition, some balance transfer credit cards offer rewards programs that can help you earn cashback or points on your purchases.
The Best Balance Transfer Credit Cards of 2023
To compile our list of the best balance transfer credit cards of 2023, we considered several factors. These factors include the introductory APR, the length of the introductory period, the balance transfer fee, and any rewards programs that are offered. Based on these factors, we have selected the following five credit cards as the best balance transfer credit cards of 2023.
Wells Fargo Reflect® Card
The Wells Fargo Reflect® Card is a balance transfer credit card that offers a 0% introductory APR on balance transfers and purchases for 18 months. It also features the Pay Down Planner tool, which helps you create a customized plan to pay off your debt. This card also has a rewards program that offers 3X points on dining, gas, and travel purchases. You can redeem your points for cash back, travel, gift cards, and more.
The balance transfer fee is either $5 or 3% of the amount of each balance transfer, whichever is greater. To be eligible for the Wells Fargo Reflect® Card, you need to have good to excellent credit. Overall, this credit card is a great option for those looking to manage their debt and earn rewards on their purchases.
Citi Simplicity® Card
The Citi Simplicity® Card offers an impressive 0% introductory APR on balance transfers for 21 months, making it a great option for those looking to transfer the high-interest debt. The card also has no late fees, no penalty APR, and no annual fee, making it a simple and straightforward choice. However, the balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater, is important to consider.
Citi® Diamond Preferred® Card
The Citi® Diamond Preferred® Card also offers a 0% introductory APR, but for a slightly shorter period of 18 months. This card is designed for those who want exclusive access to experiences and events through Citi Entertainment. The balance transfer fee is the same as the Citi Simplicity® Card, with either $5 or 5% of the amount of each transfer, whichever is greater.
BankAmericard® credit card
The BankAmericard® credit card offers a 0% introductory APR on both purchases and balance transfers for 18 billing cycles, which is a competitive offer. There is also no penalty APR and no annual fee. However, the balance transfer fee is higher at either $10 or 3% of the amount of each transaction, whichever is greater.
Citi® Double Cash Card
The Citi® Double Cash Card is not a balance transfer credit card, but it is worth mentioning for its rewards program. This card offers 2% cash back on all purchases, with no limits or categories. You earn 1% cash back when you make a purchase, and an additional 1% cash back when you pay for that purchase. There is no annual fee, but there is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
Balance transfer credit card FAQs
Balance transfers do not inherently hurt your credit score, but they can impact it in a few ways. Applying for a new card for balance transfers can result in a hard credit inquiry, which temporarily lowers your score. Transferring a balance can also increase your credit utilization rate, which can negatively affect your score. However, paying off the transferred balance and making timely payments can improve your score over time.
Is it worth getting a balance transfer?
Whether a balance transfer is worth it depends on your situation. If you have high-interest debt and can pay it off during the promotional period, a balance transfer can save you money. However, consider any fees and the interest rate after the promotional period. It’s important to make timely payments to avoid fees and protect your credit score.
How do you qualify for a balance transfer?
To qualify for a balance transfer, you usually need a good credit score and may need to meet other criteria such as income and credit card history. However, meeting the initial credit requirements doesn’t guarantee approval.
