By Budget Savvy Hub | Updated January 21, 2024

Balance transfer cards can be a great tool for managing credit card debt. By transferring your existing balance to a new card with a lower interest rate, you can save money on interest and pay off your debt faster. However, with so many options available, it can be difficult to choose the right balance transfer card for your needs. In this article, we will discuss the top balance transfer cards for 2021 and provide key takeaways to help you make an informed decision.

Key Takeaways

• Compare interest rates and fees before choosing a balance transfer card.
• Consider the length of the introductory period and the interest rate after it ends.
• Check the credit limit to ensure it can accommodate your existing debt.
• Look for additional rewards and benefits that can enhance your credit card experience.
• Evaluate your debt and financial situation before applying for a balance transfer card.

What are Balance Transfer Cards?

How do Balance Transfer Cards Work?

Balance transfer cards are a type of credit card that allow you to transfer existing credit card debt from one card to another. This can be beneficial if you have high-interest debt on one card and want to take advantage of a lower interest rate on another card. By transferring your balance, you can potentially save money on interest charges and pay off your debt faster.

When you transfer a balance, the new card issuer pays off your old debt and transfers the amount to your new card. This consolidates your debt into one account, making it easier to manage and potentially reducing your monthly payments. It’s important to note that balance transfers usually come with a fee, typically a percentage of the amount transferred.

Here are a few key points to keep in mind when considering a balance transfer card:

• Look for cards with a low or 0% introductory APR for balance transfers. This can help you save on interest charges during the introductory period.
• Consider the length of the introductory period. Some cards offer longer periods with 0% APR, giving you more time to pay off your balance without accruing interest.
• Take note of any balance transfer fees. While the savings from a lower interest rate can outweigh the fee, it’s important to factor in this cost.

Tip: Before applying for a balance transfer card, evaluate your current debt and financial situation. Make sure you have a plan in place to pay off the transferred balance within the introductory period to maximize your savings on interest charges.

Benefits of Using Balance Transfer Cards

Using balance transfer cards can provide several benefits for individuals looking to manage their credit card debt:

• Lower Interest Rates: One of the main advantages of balance transfer cards is the opportunity to transfer high-interest credit card debt to a card with a lower interest rate. This can help save money on interest charges and make it easier to pay off the debt.

• Consolidation of Debt: Balance transfer cards allow individuals to consolidate multiple credit card balances into one card. This can simplify the debt repayment process by having a single monthly payment.

Tip: Before transferring balances, it’s important to consider any balance transfer fees and the duration of the introductory period.

• Potential Savings: By taking advantage of a balance transfer card’s introductory 0% APR period, individuals can save money on interest charges and potentially pay off their debt faster.

• Improved Credit Score: Successfully managing a balance transfer card can help improve an individual’s credit score over time.

Factors to Consider Before Applying for a Balance Transfer Card

Before applying for a balance transfer card, there are several factors you should consider:

1. Credit Score: Your credit score plays a crucial role in determining your eligibility for a balance transfer card. Most issuers require a good to excellent credit score to qualify.

2. Balance Transfer Fee: Take note of the balance transfer fee charged by the card issuer. Some cards may offer a low or even zero balance transfer fee, while others may charge a percentage of the transferred amount.

3. Introductory Period: Consider the length of the introductory period offered by the card. A longer introductory period allows you more time to pay off your transferred balance without incurring interest.

4. Interest Rates: Compare the interest rates of different cards. Look for a card that offers a low or 0% APR during the introductory period and a competitive ongoing APR after the introductory period ends.

5. Additional Benefits: Lastly, consider any additional benefits or rewards offered by the card, such as cashback, travel rewards, or purchase protection.

Top Balance Transfer Cards for 2021

Card 1: XYZ Bank Balance Transfer Card

The XYZ Bank Balance Transfer Card is a popular choice for those looking to consolidate their credit card debt. With a competitive interest rate and a generous introductory period, this card offers a great opportunity to save on interest charges.

One of the standout features of the XYZ Bank Balance Transfer Card is its low balance transfer fee. This fee is significantly lower than many other balance transfer cards on the market, making it an attractive option for those looking to transfer a large amount of debt.

Additionally, cardholders of the XYZ Bank Balance Transfer Card can enjoy a range of benefits, including cashback rewards on eligible purchases and access to exclusive events and offers.

If you’re considering a balance transfer card, the XYZ Bank Balance Transfer Card is definitely worth considering. Its competitive rates, low fees, and additional benefits make it a top choice for many consumers.

Card 2: ABC Credit Union Balance Transfer Card

The ABC Credit Union Balance Transfer Card offers competitive interest rates and a generous introductory period. With this card, you can transfer your existing credit card balances and enjoy a low or 0% APR for a specified period of time. This can help you save money on interest charges and pay off your debt faster.

In addition to the attractive introductory offer, the ABC Credit Union Balance Transfer Card also provides other benefits such as rewards programs and no annual fees. By using this card, you can earn points or cash back on your purchases, making it a great option for everyday spending.

When considering this balance transfer card, it’s important to evaluate your debt and determine if the introductory period aligns with your repayment goals. Additionally, be sure to check the balance transfer fee and review the interest rates after the introductory period ends. By carefully considering these factors, you can choose the right balance transfer card that suits your needs and helps you achieve your financial goals.

Card 3: DEF Financial Balance Transfer Card

The DEF Financial Balance Transfer Card offers competitive interest rates and a generous introductory period. With a low balance transfer fee, it is a great option for those looking to consolidate their credit card debt. Additionally, cardholders can enjoy various rewards and benefits, including cashback on purchases and travel perks.

Here is a comparison of the DEF Financial Balance Transfer Card with other top balance transfer cards:

Card Features	DEF Financial	XYZ Bank	ABC Credit Union	GHI Bank
Interest Rates and Fees	Competitive rates and low fees	High rates and fees	Moderate rates and fees	Low rates and fees
Introductory Period	0% APR for 12 months	0% APR for 6 months	0% APR for 9 months	0% APR for 15 months
Credit Limit	Up to $10,000	Up to $5,000	Up to $7,500	Up to $15,000
Rewards and Benefits	Cashback on purchases and travel perks	No rewards	Points for every dollar spent	Cashback on purchases

When choosing a balance transfer card, it is important to evaluate your debt, consider the introductory period, check the balance transfer fee, review the interest rates, and look for additional benefits. By carefully considering these factors, you can find the right balance transfer card that suits your financial needs.

Card 4: GHI Bank Balance Transfer Card

The GHI Bank Balance Transfer Card is a popular choice for individuals looking to transfer their credit card balances. With competitive interest rates and a generous introductory period, this card offers great value for those seeking to save on interest charges.

One of the standout features of the GHI Bank Balance Transfer Card is its low balance transfer fee. This fee is significantly lower than many other balance transfer cards on the market, making it an attractive option for those looking to minimize costs.

Additionally, cardholders of the GHI Bank Balance Transfer Card can enjoy a range of benefits, including cashback rewards on eligible purchases and access to exclusive discounts and offers.

When considering the GHI Bank Balance Transfer Card, it is important to evaluate your current debt and determine if the card’s credit limit is sufficient to accommodate your needs. It is also advisable to review the interest rates beyond the introductory period to ensure they align with your financial goals.

Overall, the GHI Bank Balance Transfer Card is a strong contender in the balance transfer card market, offering competitive rates, a low balance transfer fee, and attractive rewards and benefits.

Comparison of Balance Transfer Cards

Interest Rates and Fees

When comparing balance transfer cards, it’s important to consider the interest rates and fees associated with each card. Here is a comparison of the interest rates and fees for the top balance transfer cards:

Card	Interest Rate	Balance Transfer Fee
Card 1	15% APR	3%
Card 2	12% APR	2%
Card 3	18% APR	4%
Card 4	14% APR	3.5%

It’s crucial to choose a card with a low interest rate to minimize the cost of carrying a balance. Additionally, be aware of any balance transfer fees, as these can add to the overall cost of transferring your debt. Keep in mind that some cards may offer introductory 0% APR for balance transfers, which can be a great way to save on interest charges. However, it’s important to review the terms and conditions to understand when the introductory period ends and what the ongoing interest rate will be. By carefully considering the interest rates and fees, you can select a balance transfer card that suits your financial needs and helps you save money.

Introductory Period

The introductory period is a crucial factor to consider when choosing a balance transfer card. This is the period of time during which the card offers a low or 0% APR on balance transfers. It allows you to save money on interest charges and pay off your debt faster.

When comparing balance transfer cards, pay attention to the length of the introductory period. Some cards offer a short introductory period of a few months, while others may offer an extended period of up to 18 months or more. Make sure to take advantage of the longest introductory period possible to maximize your savings.

Here is a comparison table of the introductory periods offered by the top balance transfer cards for 2021:

Card	Introductory Period
XYZ Bank Balance Transfer Card	12 months
ABC Credit Union Balance Transfer Card	15 months
DEF Financial Balance Transfer Card	18 months
GHI Bank Balance Transfer Card	0% APR for 12 months

Keep in mind that the length of the introductory period may vary depending on your creditworthiness and the specific terms and conditions of each card.

Important tip: It’s important to have a plan to pay off your transferred balance within the introductory period to avoid high interest charges once the period ends.

Credit Limit

The credit limit is an important factor to consider when choosing a balance transfer card. It determines the maximum amount of debt you can transfer to the card. Having a higher credit limit can be beneficial as it allows you to transfer more debt and potentially consolidate multiple balances into one card. However, it’s important to note that the credit limit offered by the card issuer will depend on your creditworthiness and financial situation.

When comparing balance transfer cards, it’s recommended to check the credit limit offered by each card. Some cards may offer a higher credit limit, while others may have a lower limit. It’s important to choose a card that provides a credit limit that meets your needs and allows you to transfer your desired amount of debt.

In addition to the credit limit, it’s also important to consider other factors such as interest rates, fees, and introductory periods when choosing a balance transfer card.

Rewards and Benefits

When comparing balance transfer cards, it’s important to consider the rewards and benefits offered by each card. Some cards may offer cashback rewards on balance transfers, while others may provide travel rewards or points that can be redeemed for merchandise. Additionally, certain cards may offer introductory bonus rewards or special benefits such as extended warranty protection or purchase protection.

To help you make an informed decision, here is a comparison of the rewards and benefits offered by the top balance transfer cards for 2021:

Card	Rewards	Benefits
XYZ Bank Balance Transfer Card	1% cashback on balance transfers	Extended warranty protection
ABC Credit Union Balance Transfer Card	2x travel rewards on balance transfers	Purchase protection
DEF Financial Balance Transfer Card	5,000 bonus points on balance transfers	Price protection
GHI Bank Balance Transfer Card	No rewards	Concierge service

Remember to consider your own spending habits and preferences when evaluating the rewards and benefits of each card. It’s important to choose a card that aligns with your financial goals and offers the most value for your specific needs.

How to Choose the Right Balance Transfer Card

Evaluate Your Debt

When evaluating your debt, it’s important to consider the following factors:

1. Total Debt Amount: Calculate the total amount of debt you want to transfer to a balance transfer card. This will help you determine if the card’s credit limit is sufficient.

2. Interest Rates: Take note of the interest rates on your current debts. Look for a balance transfer card that offers a lower interest rate to save on interest charges.

3. Introductory Period: Check the length of the introductory period offered by the card. A longer introductory period allows you more time to pay off your debt without accruing interest.

Tip: If you have a large debt amount, consider a balance transfer card with a longer introductory period to give yourself more time to pay it off.

4. Balance Transfer Fee: Review the balance transfer fee charged by the card. Some cards may offer a promotional period with no balance transfer fee, which can save you money.

5. Credit Score: Consider your credit score when choosing a balance transfer card. Some cards may require a higher credit score for approval.

Consider the Introductory Period

When choosing a balance transfer card, it is crucial to carefully consider the introductory period. This is the period of time during which you will enjoy a low or 0% APR on balance transfers. The length of the introductory period can vary among different cards, so it’s important to compare and choose one that suits your needs.

One way to evaluate the introductory period is by looking at the duration of the 0% APR. Some cards offer a 0% APR for a specific number of months, while others may have a tiered APR structure where the rate gradually increases over time.

Additionally, it’s important to consider any balance transfer fees that may be associated with the card. Some cards may charge a percentage of the transferred balance as a fee, while others may have a flat fee. Be sure to factor in these fees when comparing cards to determine the true cost of transferring your balance.

Lastly, keep in mind that the introductory period is a limited-time offer. Once the period ends, the card’s regular APR will apply to any remaining balance. Therefore, it’s important to have a plan in place to pay off your balance before the introductory period expires.

Check the Balance Transfer Fee

When comparing balance transfer cards, it’s important to consider the balance transfer fee. This fee is typically a percentage of the amount you transfer and can range from 3% to 5%. Choosing a card with a lower balance transfer fee can help you save money in the long run. However, it’s also important to consider other factors such as the introductory period and interest rates.

Here is a comparison table of balance transfer fees for the top cards:

Card	Balance Transfer Fee
Card 1	3%
Card 2	4%
Card 3	5%
Card 4	3.5%

Keep in mind that the balance transfer fee is just one aspect to consider when choosing a card. It’s also important to evaluate your debt, check the introductory period, review the interest rates, and look for additional benefits. By considering all these factors, you can find the right balance transfer card that suits your needs and helps you save money.

Review the Interest Rates

When reviewing the interest rates of balance transfer cards, it’s important to consider the APR, or Annual Percentage Rate. The APR represents the cost of borrowing and includes both the interest rate and any additional fees. Look for balance transfer cards with low APRs to minimize the cost of carrying a balance.

Additionally, pay attention to any promotional interest rates offered by the card. These introductory rates are usually lower than the regular APR and can provide significant savings during the introductory period.

To compare the interest rates of different balance transfer cards, you can create a table that includes the APRs, promotional rates, and any other relevant fees. This will allow you to easily compare the costs and benefits of each card.

Remember, the interest rates of balance transfer cards can have a big impact on your overall savings, so it’s important to carefully review and compare them before making a decision.

Look for Additional Benefits

When choosing a balance transfer card, it’s important to consider the additional benefits that come with the card. These benefits can vary from card to card and can provide added value to cardholders. Some common additional benefits to look for include:

• Cashback rewards: Some balance transfer cards offer cashback rewards on purchases made with the card. This can be a great way to earn extra money while paying off your balance.

• Travel perks: If you enjoy traveling, look for balance transfer cards that offer travel perks such as airline miles or hotel discounts. These perks can help you save money on your next vacation.

• No annual fee: Many balance transfer cards have an annual fee, but some cards waive this fee. If you want to avoid paying an annual fee, be sure to look for a card that offers this benefit.

• Extended warranty protection: Some balance transfer cards offer extended warranty protection on eligible purchases. This can provide peace of mind knowing that your purchases are protected.

• Fraud protection: Look for balance transfer cards that offer fraud protection. This can help protect you from unauthorized charges and give you peace of mind when using your card.

When comparing balance transfer cards, be sure to consider these additional benefits along with the interest rates, fees, and introductory periods.

Conclusion

In conclusion, the top balance transfer cards for 2021 offer great opportunities for individuals looking to manage their credit card debt. With competitive interest rates, low or no balance transfer fees, and attractive rewards programs, these cards provide a valuable tool for achieving financial stability. Whether you’re looking to consolidate your debt or take advantage of a promotional APR, there is a balance transfer card that can meet your needs. Don’t miss out on the chance to save money and take control of your finances with one of these top cards.

Frequently Asked Questions

What is a balance transfer card?

A balance transfer card is a credit card that allows you to transfer the balance from one credit card to another, usually with a lower interest rate.

How does a balance transfer card work?

When you transfer a balance to a balance transfer card, the new card issuer pays off the balance on your old credit card. You then owe the new card issuer the transferred balance, usually with a lower interest rate.

What are the benefits of using a balance transfer card?

Using a balance transfer card can help you save money on interest charges, consolidate your credit card debt into one payment, and potentially improve your credit score.

What factors should I consider before applying for a balance transfer card?

Before applying for a balance transfer card, you should consider the balance transfer fee, the length of the introductory period, the interest rate after the introductory period, and any additional benefits or rewards offered by the card.

Can I transfer balances from multiple credit cards to a balance transfer card?

Yes, you can typically transfer balances from multiple credit cards to a balance transfer card. However, there may be limits on the total amount you can transfer.

Will transferring a balance affect my credit score?

Transferring a balance to a balance transfer card may have a temporary negative impact on your credit score. However, if you make timely payments and reduce your overall debt, it can have a positive long-term effect on your credit score.