One of the first rules of using a credit card wisely is to avoid carrying a balance from month to month. Ideally, all credit card users would charge only as much as they could afford to repay in a month or two, in order to avoid interest charges.
However, many people, over half of all Americans, do maintain at least one credit card balance, and it’s costing us billions of dollars a year. It could be that people simply fail to calculate how much that brand-new HDTV was really going to cost them over time; or it could be that many people simply had no choice but to pay for necessary expenses with credit. Regardless, if you’re carrying a balance on a credit card, and have good to excellent credit, applying for a good balance transfer credit card can definitely improve your bottom line.
The benefits of getting a balance transfer credit card are two-fold. First, when you transfer all (or a portion) of a balance to a credit card with zero interest, you’re basically turning what was a high-interest loan into a no-interest one. On a balance of $4,000-$5,000, with an average interest rate of 15%, that could mean a savings of $200-$400 if it takes 12 months to pay the entire balance. Second, acquiring a new balance transfer credit card can help improve your credit score by letting you pay down the balance quicker (since there are no pesky interest charges), and by lowering your overall credit utilization.
Consider this balance transfer credit card comparison, below, and choose the one that matches your needs.
| Card Name | Credit Needed | Card Type | Rewards | Intro. APR | Pur. APR | Annual Fee | Bal. Trans. % | Notes |
| Chase Freedom MasterCard | Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 15 mos. | 12.99% - 22.99% (V) | $0 | 0% - 15 mos. | $100 cash back bonus; 5pts/$1 on rotating categories (max $1,500); 1pt/$1 otherwise; 10pts/$1 at Chase.com/RewardsPlus |
| Chase Freedom Visa | Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 15 mos. | 12.99% - 22.99% (V) | $0 | 0% - 15 mos. | $100 cash back bonus; 5pts/$1 on rotating categories (max $1,500); 1pt/$1 otherwise; 10pts/$1 at Chase.com/RewardsPlus |
| Citi Diamond Preferred | Good - Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 18 mos. | 11.99% - 21.99% (V) | $0 | 0% - 18 mos. | Rewards = use of personal concierge, acces to exclusive events |
| Citi Forward Card | Good - Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 12 mos. | 12.99% - 22.99% (V) | $0 | 0% - 12 mos. | $150 bonus (after $650 spent); 5pts/$1 at restaurants; 1pt/$1 otherwise |
| Citi Simplicity Card | Good - Excellent | 0% APR; Bal. Trans. | No | 0% - 18 mos. | 12.99% - 21.99% (V) | $0 | 0% - 18 mos. | No lates fees, no penalty rate |
| Discover More Card - 18 mo. Promo | Good - Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 6 mos. | 10.99% - 20.99% (V) | $0 | 0% - 18 mos. | 5pts/$1 on rotating categories; 1pt/$1 otherwise |
| Discover More Credit Card | Good | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 15 mos. | 10.99% - 20.99% (V) | $0 | 0% - 15 mos. | 5pts/$1 on rotating categories; 1pt/$1 otherwise; 5-20pts/$1 at ShopDiscover.com |
| Discover Motiva | Good | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 15 mos. | 10.99% - 20.99% (V) | $0 | 0% - 15 mos. | 5% of monthly interest payment as cash back (when bill paid on-time); 5-20pts/$1 at ShopDiscover.com |
| Escape by Discover Card | Average - Good | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 6 mos. | 10.99% - 20.99% (V) | $60 | 0% - 6 mos. | 1,000 bonus pts for each mo. the card is used (up to 25 mos.) |
| Miles by Discover Card | Good - Excellent | 0% APR; Bal. Trans.; Rewards | Yes | 0% - 6 mos. | 10.99% - 19.99% (V) | $0 | 0% - 6 mos. | Up to 12k bonus mi.; 2mi./$1 spent (up to $3k); 1mi./$1 spent otherwise |
| PenFed Promise Card | Excellent | Bal. Trans.; Low APR | No | 7.49% - 36 mos. | 9.99% (V) | $0 | 4.99% | No general fees, no balance transfer fees |
| Slate from Chase | Excellent | 0% APR; Bal. Trans. | No | 0% - 15 mos. | 11.99% - 21.99% (V) | $0 | 0% - 15 mos. | No balance transfer fee for first 30 days |
| Visa Black Card | Excellent | Bal. Trans.; Rewards | Yes | N/A | 14.99% (V) | $495 | 0% - 15 mos. | 1pt/$1 cash back w/ no limits; consierge service, luxury gifts |
Remember: The credit card details contained in this comparison chart are considered accurate as of 6/29/2012, and may not be accurate after this date. Since interest rates and offers change frequently, it’s always best to read all current Terms and Conditions agreements for any card you are considering. These can often be found on the credit card application, which you can access from this web page.
