Rosalind Evans
Accumulating debt is an unfortunate reality for many Americans. Keeping up with monthly credit card payments might be challenging, but don’t despair. One avenue to explore is switching to a balance transfer credit card.
These cards provide an introductory 0% APR on the amounts transferred from your existing credit cards. This interest-free period can range from 12 to even 21 months after you get the card. So, shifting your balance soon could mean zero interest till 2024. Moreover, certain balance transfer cards come with rewards for routine spending, with added features like cell phone insurance or travel protection. To navigate your debt management, consider our top picks for 2023’s finest balance transfer cards.
Best Balance Transfer Credit Cards of 2023:
1. Citi® Diamond Preferred® Card: Top choice for balance transfers.
2. U.S. Bank Visa® Platinum Card: Ideal for extended balance transfers.
3. Citi® Double Cash Card: Leading for consistent cash back rewards.
4. Chase Freedom Flex℠: Superior for varied bonus categories.
5. Citi Rewards+® Card: Optimal for minimal purchases.
Our selections are based on a thorough assessment of our benchmark credit card, emphasizing the potential value to users. Delve into each card’s specifics with us to determine the best fit.
Citi Diamond Preferred: Premier Choice for Balance Transfers
In a nutshell: If minimizing interest payments is your goal, the Citi Diamond Preferred offers a whopping 21-month 0% APR for balance transfers done within the initial four months after card acquisition (post-introductory period rates vary between 18.24% and 28.99%).
Perfect for: Those wanting a prolonged window to manage their debt with an extended introductory rate and ample time for balance transfers to qualify for the promo rate.
Highlights:
– 21-month 0% APR for early balance transfers (after which 18.24%-28.99% applies).
– 12-month 0% APR on purchases (a post which 18.24%-28.99% applies).
– No annual fee.
– Sign-up bonus: N/A.
Why the Citi Diamond Preferred shines: Offering one of the longest interest-free periods, this card helps in debt consolidation, making payments more manageable throughout 2023 and 2024. Transfers must be done within four months of opening the account for the promotional rate. Remember, the 21-month timeline starts from the first transfer. Added perks include a free FICO score online and flexibility in selecting the due date for payments.
Areas for improvement: The card doesn’t provide rewards, missing out on points or cashback opportunities. A 5% fee (minimum $5) is applicable for balance transfers, which might be higher than some competitors. Still, the prolonged zero-interest span may justify this cost.
How it surpasses our benchmark: An unmatched 21-month 0% interest on balance transfers and 12 months on purchases.
Benchmark comparison: The Citi Double Cash provides universal cash back and offers a longer period for introductory balance transfers.
U.S. Bank Visa Platinum Card: Best for Extended Balance Transfers
In brief: U.S. Bank Visa Platinum’s draw is its 18-cycle introductory balance transfer period, coupled with the unique addition of cell phone insurance.
Ideal for: Individuals valuing cell phone security and a longer span to clear balance transfers.
Highlights:
– 18-cycle 0% APR for early balance transfers (post which it’s 19.74%-29.74%).
– 18-cycle 0% APR on initial purchases (thereafter 19.74%-29.74%).
– Mobile phone insurance included.
– No annual fees.
– Sign-up bonus: None.
U.S. Bank Visa Platinum’s allure: Its distinctive cell phone protection feature stands out. By using the card for mobile bills, users receive damage or theft coverage, with certain conditions. Its 18-cycle 0% APR for balance transfers is competitive. And the zero annual fee sweetens the deal.
Possible enhancements: This card lacks a sign-up offer or a rewards scheme, making its primary attractions the promotional balance transfer and purchase offers, alongside mobile insurance.
Comparative strengths: Offers 0% interest on initial purchases and includes mobile protection.
Benchmark comparison: The Citi Double Cash grants easy cash back on all buys and has a longer time frame for introductory balance transfers.
Citi Double Cash Card: Top Pick for Uniform Cash Back
In a Nutshell: With the Citi Double Cash card, you can earn 2% cash back on every purchase (1% at purchase and 1% upon payment) without an annual fee.
Ideal for: Individuals looking for an uncomplicated way to earn cash back while also having a balance transfer option.
Features:
– Benefit from a 0% introductory APR on balance transfers for the first 18 months (then variable 19.24% to 29.24%).
– Earn a consistent 2% cash back on all expenses with no restrictions.
– Redeem your cashback as Citi ThankYou travel points and, when combined with the Citi Premier℠ Card, transfer to travel partners.
– No annual fee.
– No introductory bonus.
Our Take on Citi Double Cash Card: This card is refreshingly simple, allowing consistent cash back regardless of where you shop. Plus, an 18-month 0% APR for balance transfers is an appealing way to address existing debt. Combine it with the premium Citi ThankYou credit cards for greater reward potential. A drawback is the lack of added benefits and the balance transfer and foreign transaction fees.
Why CNN Underscored ranks it as the “benchmark”: Its simplicity and competitive cashback rate make the Citi Double Cash the standard by which we measure other credit cards.
Chase Freedom Flex: Leading Choice for Rotating Bonus Categories
At a Glance: The Chase Freedom Flex offers a solid balance transfer deal and versatile cash back that can turn into travel rewards when linked with Chase Sapphire cards.
Suitable for: Those desiring varied rewards and a method to manage their debt.
Key Points:
– Enjoy 0% introductory APR on purchases and balance transfers for 15 months (then variable 20.49% to 29.24%).
– Get up to 5% cash back in rotating bonus categories and on travel through Chase Ultimate Rewards, 3% on dining, drugstores, and 1% on all other expenses.
– Advanced users can transform cash back into flexible travel points with the Chase Sapphire cards.
– No annual fee.
– Initial bonus: Get $200 bonus cash back after a $500 spend within the first three months.
Our Perspective on Chase Freedom Flex: This card provides an intriguing mix of cashback and future travel possibilities. With bonus categories, strong cash-back rates, and the potential to pair with Chase Sapphire cards, there’s great value here. Limitations include a capped bonus category and the need to activate the rotating bonus quarterly.
Compared with our benchmark: It offers a sign-up bonus, purchase protections, and an initial 15-month purchase APR. However, Citi Double Cash offers a higher consistent cash back.
Citi Rewards+ Card: Top Contender for Minor Purchases
Briefly: The Citi Rewards+ uniquely rounds up rewards, making it a winner for frequent small purchases. Plus, it offers a balance transfer incentive.
Best for: Those aiming to maximize points for small buys while addressing credit card debt.
Attributes:
– Avail 0% introductory APR on balance transfers and purchases for 15 months (then variable 18.74% to 28.74%).
– Gain 2 ThankYou points at supermarkets and gas stations (up to $6,000 yearly), and 1 point on other expenses.
– Automatic round-up for all purchases to the nearest 10 points.
– Redeem 10% points back on the initial 100,000 points yearly.
– No annual fee.
– Joining bonus: Gain 20,000 points after spending $1,500 in three months. Additional points for select travel bookings till June 30, 2024.
Our View on Citi Rewards+: Its round-up feature and points back on redemption make it stand out. While the balance transfer period isn’t the longest, the rewards offer compensates. Its real potential unlocks when paired with premium Citi ThankYou cards.
Comparison to benchmark: It provides a sign-up bonus, points back, and a 15-month purchase APR. However, Citi Double Cash has an extended 18-month balance transfer APR.
FAQs on Balance Transfer Credit Cards:
1. What’s a balance transfer?
It’s the process of moving existing debt from one credit card to another with a lower interest rate, usually within a set period post-approval, to reduce monthly payments.
2. Key features in a balance transfer card?
The length of the zero-interest period is crucial. Additionally, consider balance transfer fees, reward schemes, protections, and introductory offers.
3. Duration of a balance transfer?
It can take up to a week. Ensure you continue paying your old card until the transfer is complete.
4. Potential pitfalls?
After the introductory period, high interest rates apply. Maintain regular payments to avoid losing benefits. Transfers between cards from the same bank are typically not allowed.
5. Impact on credit score?
A balance transfer itself doesn’t damage your score. By increasing your overall credit without adding debt, your credit utilization ratio can improve, potentially boosting your score.
6. Other ways to manage debt
Consider personal loans, credit counselling, or debt settlement.
Remember: Credit card offers can change frequently. Ensure you visit the card issuer’s website for the most recent terms and conditions.
CNN Underscored’s methodology: Our assessment depends on a comparison of the card’s features to our “benchmark,” which is usually a card known for simplicity and strong cash-back offerings. We evaluate reward schemes, introductory offers, additional benefits, and fees.
In an era where financial maneuverability is key, selecting the right credit card to manage debt can be a game-changer. With options offering extended interest-free periods, valuable protections, and even rewards, there’s a card out there tailored for everyone’s unique needs. As you contemplate your next financial move, consider these top balance transfer cards of 2023, and chart a path towards a more secure financial future.
