Pay No Interest Up to 21 Months With These Credit Cards
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Note: Some offer details in this article have expired and the offer is no longer available through Credit Cards Explained.
It’s easier than ever to stray from our budgets. With the click of a button, you can pay for a vacation, donate to a charity, or pay for a shopping spree with your phone. And, if you have unexpected medical bills or a car repair, your credit card bill can quickly grow more than you can pay off in one month. Rather than pay interest as you work to pay down your balance, you may want to take advantage of a balance transfer credit card.
When to consider a balance transfer credit card:
- If you keep a balance on your card from month to month
- If your current card has a high APR
- If you want to buy a big ticket item and use the 0% APR period to pay it off
What Is a Balance Transfer Card
Balance transfer credit cards allow you to transfer what you owe on your current credit card to a new card with a lower interest rate. Most balance transfer cards offer an introductory 0% interest balance transfer period where you can pay down the balance and not get charged interest. This can be as many as 12 months or even longer, and can be a great help if you’re dealing with a large balance.
While not everyone’s needs are the same, there are three main features to consider when choosing a balance transfer card:
- The introductory balance transfer APR
- The introductory balance transfer APR period
- Balance transfer fees
The introductory balance transfer APR is the interest rate you will have when you transfer your balance to the new card. Most balance transfer cards offer an introductory rate of 0%. The introductory balance transfer APR period is the time period you will have the low rate for; generally the longer the better. Some cards have a balance transfer fee which is usually a percentage of the balance you’re transferring.
It may seem complicated, but knowing these three features when shopping for a balance transfer card can end up saving you a lot of money. Let’s say you have a credit card with a $3,000 balance and an APR of 19%. You find a balance transfer card with the following terms:
- 0% introductory balance transfer APR
- introductory balance transfer APR period of 12 months
- 3% fee of the transfer amount
Even after you pay the balance transfer fee of $90, you will still save $480 over the 12 month 0% intro APR period.
Knowing the card features that match your financial goals is the first step to choosing the right balance transfer card. If you’re shopping for a balance transfer card, here are some cards to consider.
Cards With Long Pay No Interest Offers
Citi® Diamond Preferred® Card
The Citi® Diamond Preferred® Card from Citi, a Credit Cards Explained advertiser, stands out with an 12 month 0% introductory APR on purchases and 21 months on balance transfers. For purchases, the introductory offer starts from account opening and for balance transfers the 21 month intro offer starts from the date of transfer (transfers must be completed within four months of opening the account). That is one of the longer 0% intro APR periods currently available for purchases and balance transfers, and you would avoid paying interest through October 2024! All of 2023 and most of 2024 could be interest free. While the Diamond card does have a balance transfer fee of $5 or 5% (whichever is greater), it boasts a low APR range.
In the above example, using the same $3,000 balance your savings with the Diamond card jumps to an impressive $848 during the 21-month introductory period. After the intro period, the APR will be 17.24% - 27.99% (Variable) based on your creditworthiness. Click for more information on the Citi® Diamond Preferred® Card.
Chase Slate Edge℠
The Chase Slate Edge℠ credit card offers a 0% introductory APR period on purchases and on balance transfers for 18 months, after which a variable 20.49% - 29.24% APR will apply based on your creditworthiness. The Chase Slate Edge℠ has a $5 or 3% (whichever is greater) transfer fee and no annual fee. At 18 months, the introductory APR offer will allow you to pay no interest through July 2024!
With the same above example, your savings would be a $765 over the course of the introductory rate period. The Chase Slate Edge℠ offers cardholder the ability to lower their interest rate by 2% each year if you pay on time and spend at least $1,000 on the card before their card anniversary date. For cardholders looking to improve their credit limit, in your first six months with the card you can get an automatic, one-time review if you pay on time and spend $500 on the card.
Card With Balance Transfer and Flat-Rate Cash Back
Citi® Double Cash Card
A card that combines an impressive balance transfer offer with generous cash back rewards is the Citi® Double Cash Card from Citi, a Credit Cards Explained advertiser. The Citi® Double Cash Card offers a 0% introductory APR on balance transfers for 18 months. After the intro period, a variable APR of 19.24% - 29.24% will apply, based on your creditworthiness. There is an intro balance transfer fee of 3% of the amount of each transfer (minimum $5) in the first four months of account opening. After the intro period, a 5% fee ($5 minimum) of each transfer applies after that. With the $3,000 balance transfer example, the savings would be $765 over the course of the introductory offer. At 18 months, the introductory APR offer will allow you to pay no interest through July 2024!
The Citi® Double Cash Card is another card to consider if you are planning on keeping the card after the balance transfer period. The card earns 2% cash back on purchases, 1% when you make a purchase and another 1% cash back when you pay for those purchases. With benefits like no spending categories to worry about, no caps on your cash back rewards, and no annual fee, the Citi® Double Cash Card is a card to consider for balance transfers and for every day. Click for more on the Citi® Double Cash Card.
Card with Balance Transfer and Rewards
Citi Rewards+® Card
If you are looking for a balance transfer card that also offers benefits, the Citi Rewards+® Card, a Credit Cards Explained advertiser, is a card to consider. This card currently offers a 0% intro APR on balance transfers for 15 months from the date of first transfer (after which a variable APR of 17.74% - 27.74% applies). Here, too, there is an intro balance transfer fee of 3% of the amount of each transfer (minimum $5) within the first four months of account opening. After the intro period, a 5% fee ($5 minimum) of each transfer applies after that. While the balance transfer offer isn't as long as some cards, you would still have an interest-free 2022 — extending through March 2024! Using the above example, paying down the $3,000 balance over the 15-month intro period would give you an impressive savings of $622.
But the Citi Rewards+® Card is worth keeping even after you have paid off your balance transfer. You can earn 2 ThankYou® Points at supermarkets and gas stations (on the first $6,000 each year) and 1 point per dollar on everything else. The Rewards+ card rounds up to the nearest 10 points on every purchase, increasing the points you can earn. You can also earn 20,000 bonus points if you spend $1,500 on the card in your first three months of account opening. Learn more about the Citi Rewards+® Card.
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ABOUT THE AUTHOR
Steven Abrams is a Content Manager at Credit Cards Explained, working exclusively in the credit card space. He has over 20 years of experience as a writer and editor, covering topics from tech industry trends to film industry finance.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
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