RedditHow Balance Transfers Work
If you carry credit card debt, it may cost you a lot of money on the interest. Don’t worry. Balance transfer credit cards can help you pay down the debt. You just need to open a new credit card with 0% introductory interest on balance transfers. And then you can request to transfer current credit-card balance to the new card. After that, you can just make the minimum payment each billing cycle to avoid finance charges and pay off all the remaining balance at the end of the introductory period of 0% interest. In this way, a balance transfer credit card helps you save money by reducing the cost of high interest.
Potential Savings by Balance Transfers
How much can you save with a balance transfer card? For instance, take an example that you have a credit card balance of $10,000 with 18% interest. In order to pay it off in 18 months, you will need to pay $640 each month for 18 straight months. Consequently, you will end up with paying interest of approximately $1,480.
With a 0% interest balance-transfer card, you can keep most of the $640 monthly payment in your bank account. And you can pay off the balance 18 months later without paying any interest. Most credit cards charge a one-time service fee for doing a balance transfer. For example, for each qualifying balance transfer, BankAmericard Credit Card charges 3% of the transferred balance. In order to transfer a balance of 10,000, the transaction will cost about $300 in fees. With about $1,480 in potential interest cost that you saved, you will save approximately $1,180 by using a 0% balance transfer card.
Balance Transfer Credit Cards
Choose from one of the following credit cards that offer 0% on balance transfers for at least 15 months. All these credit cards are for people who have good or excellent credit rating. If you have a credit score of 700 or above, you may qualify for these offers.
0% Interest for 18 Months or More
| Credit Card | 0% Introductory Interest | Annual Fee | |
|---|---|---|---|
 | Citi Simplicity® Card | 0% on purchases for 12 months and on qualifying balance transfers for 21 months | $0 |
 | Citi® Diamond Preferred® Card | 0% on purchases for 12 months and on qualifying balance transfers for 21 months | $0 |
 | U.S. Bank Visa® Platinum Card | 0% on purchases and balance transfers for 20 billing cycles | $0 |
 | BankAmericard® credit card | 0% on purchases and qualifying balance transfers for 18 billing cycles | $0 |
 | Citi® Double Cash Card - 18 month BT offer | 0% on balance transfers for 18 months | $0 |
0% Interest for 15 Months
| Credit Card | 0% Introductory Interest | Annual Fee | |
|---|---|---|---|
 | Bank of America® Customized Cash Rewards credit card | 0% on purchases and qualifying balance transfers for 15 billing cycles | $0 |
 | Bank of America® Unlimited Cash Rewards credit card | 0% on purchases and qualifying balance transfers for 15 billing cycles | $0 |
 | Citi Custom Cash℠ Card | 0% on purchases and balance transfers for 15 months | $0 |
 | Citi Rewards+® Card | 0% on purchases and balance transfers for 15 months | $0 |
 | Blue Cash Everyday® Card from American Express | 0% on purchases for 15 months (rates & fees) | $0 (fees) |
 | Mastercard® Titanium Card™ | 0% on balance transfers made in the first 45 days for 15 billing cycles | $195 ($95 for each authorized user added to the account) |
