Are you carrying a balance on a high-interest credit card? If so, you may be able to save thousands of dollars by transferring your debt to a 0% APR balance transfer credit card. These cards offer an introductory period of up to 21 months with no interest charged on transferred balances, giving you ample time to pay down your debt without accumulating additional interest charges.
In this article, we’ll explore the top 0% APR balance transfer credit cards that offer a 21-month interest-free period, discuss their features, and provide you with the knowledge to make an informed decision when selecting the right card for your financial situation.
What is a Balance Transfer Credit Card?
A balance transfer credit card is a financial tool that allows you to transfer outstanding balances from one or more existing credit cards to a new card with a lower interest rate or, in many cases, a 0% APR introductory period. During the introductory period, which can range from 6 to 21 months, you won’t be charged any interest on the transferred balance, giving you the opportunity to pay down your debt more efficiently.
By shifting your debt to a 0% APR balance transfer card, a larger portion of your monthly payments will go towards reducing the principal balance, rather than paying interest charges. This can result in significant savings and help you become debt-free faster.
Top 0% APR Balance Transfer Cards with 21 Months of No Interest
1. Citi Simplicity® Card
The Citi Simplicity® Card offers a 0% introductory APR on balance transfers for 21 months, along with a 0% intro APR on purchases for 12 months. After the introductory period ends, the variable APR is currently 19.24% – 29.99%, based on your creditworthiness. This card also comes with no annual fee, no late fees, and no penalty APR.
Intro APR Offer: 0% intro APR for 21 months on balance transfers and 0% intro APR for 12 months on purchases
Balance Transfer Fee: 5% or $5, whichever is greater (3% or $5 for transfers completed within the first 4 months)
Ongoing APR: 19.24% – 29.99% (Variable)
Annual Fee: $0
2. Citi® Diamond Preferred® Card
The Citi® Diamond Preferred® Card also offers a generous 0% intro APR on balance transfers for 21 months, as well as a 0% intro APR on purchases for 12 months. After the introductory period, the variable APR is currently 18.24% – 28.99%, based on your creditworthiness. This card also comes with no annual fee.
Intro APR Offer: 0% intro APR for 21 months on balance transfers and 0% intro APR for 12 months on purchases
Balance Transfer Fee: 5% or $5, whichever is greater
Ongoing APR: 18.24% – 28.99% (Variable)
Annual Fee: $0
3. Wells Fargo Reflect® Card
The Wells Fargo Reflect® Card offers a 0% intro APR on purchases and qualifying balance transfers for 21 months from account opening. After the introductory period, the variable APR is currently 18.24%, 24.74%, or 29.99%, based on your creditworthiness. This card also comes with no annual fee and up to $600 of cell phone protection against damage or theft (subject to a $25 deductible).
Intro APR Offer: 0% intro APR for 21 months on purchases and qualifying balance transfers
Balance Transfer Fee: 5% or $5, whichever is greater
Ongoing APR: 18.24%, 24.74%, or 29.99% (Variable)
Annual Fee: $0
READ ALSO: The Top Banks for Credit Cards In 2024
4. U.S. Bank Visa® Platinum Card
The U.S. Bank Visa® Platinum Card offers a 0% intro APR on purchases and balance transfers for 21 billing cycles, followed by a variable APR of 18.74% – 29.74%. This card also provides up to $600 in cell phone protection against damage or theft (subject to a $25 deductible) when you pay your monthly phone bill with the card.
Intro APR Offer: 0% intro APR on purchases and balance transfers for 21 billing cycles
Balance Transfer Fee: 5% or $5, whichever is greater (3% or $5 for transfers within 60 days of account opening)
Ongoing APR: 18.74% – 29.74% (Variable)
Annual Fee: $0
Choosing the Right Balance Transfer Credit Card
When selecting a balance transfer credit card, it’s essential to consider factors such as the length of the introductory 0% APR period, the balance transfer fee, the ongoing APR after the introductory period ends, and any additional benefits or perks the card may offer.
Here are a few tips to help you choose the right balance transfer credit card:
Determine the length of the introductory period you need: Consider how long it will take you to pay off your debt. If you can realistically pay off your balance within 21 months, go for the cards that offer the longest introductory period.
Compare balance transfer fees: Balance transfer fees can range from 3% to 5% of the transferred balance. Choose the card with the lowest fee to minimize your upfront costs.
Evaluate ongoing APR: While the introductory 0% APR period is crucial, also consider the ongoing APR after the promotional period ends. Aim for a lower ongoing APR to minimize interest charges if you can’t pay off your balance within the introductory period.
Consider additional benefits: Some balance transfer cards offer additional benefits like cell phone protection, purchase protection, or rewards programs. If all else is equal, choose the card that provides the most valuable benefits for your lifestyle.
To Recap
Balance transfer credit cards with 0% APR introductory periods can be a powerful tool for managing and paying down high-interest debt. By taking advantage of these offers, you can save money on interest charges and become debt-free faster.
When choosing a 0% APR balance transfer card, consider the length of the introductory period, the balance transfer fee, the ongoing APR after the promotional period ends, and any additional benefits the card may offer. Make sure to have a plan in place to pay off your balance within the introductory period to maximize your savings.
Remember, while balance transfer cards can be helpful in managing debt, it’s essential to use them responsibly and avoid accumulating new debt. Develop a budget, stick to it, and make timely payments to ensure you’re on the path to financial freedom.
Frequently Asked Questions
Can I use a 0% APR balance transfer card for new purchases?
Most 0% APR balance transfer cards also offer an introductory 0% APR period for new purchases, but the length of this period may vary. It’s crucial to review the terms and conditions of each card to understand if the 0% APR applies to both balance transfers and new purchases, and for how long. Making new purchases during the introductory period can help you save on interest charges, but it’s essential to have a plan to pay off the entire balance before the promotional period ends.
What happens if I can’t pay off my balance before the 0% APR period ends?
If you cannot pay off your entire balance before the end of the introductory 0% APR period, the remaining balance will be subject to the ongoing APR, which can be significantly higher. To avoid incurring high-interest charges, it’s best to have a plan to pay off your balance within the introductory period. If that’s not possible, consider transferring your remaining balance to another 0% APR balance transfer card before the promotional period ends.
Can I transfer a balance from an American Express card?
Yes, in most cases, you can transfer a balance from an American Express card to a 0% APR balance transfer card. However, some card issuers may have restrictions or limitations on accepting balance transfers from American Express cards. It’s always a good idea to check with the card issuer before initiating the transfer to ensure it’s allowed.
Can I transfer a balance from a card in my partner’s name?
Some card issuers allow you to transfer a balance from a card in someone else’s name, as long as it’s not with the same provider. However, it’s essential to note that if you transfer your partner’s debt to your card, the debt becomes your responsibility, and you will be legally obligated to pay it off. Carefully consider the potential risks before taking on someone else’s debt, even if it’s a trusted partner or family member.
In another related article, The Best Secured Credit Cards for Building Credit in 2024
