If you’re like most Americans, you’re burdened by credit card debt. In fact, the average American has $6,354 in credit card debt. With high interest rates, your balance can quickly balloon out of control, and you can end up paying far more than you originally charged.
Doing a balance transfer is a great way to pay down your debt. You can take advantage of a low APR to make payments, so most of what you pay goes toward principal rather than interest.
If you’re looking to do a balance transfer, here are the five best credit cards available.
5. Discover it® Balance Transfer
If you’re looking for a good all-around credit card, the Discover it® Balance Transfer card is a good choice, especially for balance transfers. When you do a transfer, you get 0% APR for 18 months. That gives you more than a year to pay off your debt before the normal APR of 14.24% to 25.24% kicks in.
Discover will even match the cash back you earned over the course of your first year as a cardholder, which can be significant. Best of all, there’s no annual fee to worry about.
The HSBC Cash Rewards Mastercard® credit card gives you a 0% introductory APR for 12 months from account opening. After that, you’ll have a variable APR of either 15.24%, 19.24% or 25.24% will apply after the introductory period, dependent on your credit worthiness.
The card is a solid option if you’re looking for cash back rewards after doing your balance transfer. You’ll get 1.5% unlimited cash back on all purchases, and a 10% anniversary bonus on all cash rewards earned throughout the year.
There’s no annual fee or foreign transaction fee, making it a great choice for budget-conscious shoppers.
Like the HSBC Cash Rewards Mastercard® credit card, the Capital One® SavorOneSM
Cash Rewards Credit Card gives you a 0% introductory APR offer for 15 months. After that, an APR of 16.24%-26.24% (Variable) applies. However, we rank this card higher due to its other perks.
You can earn up to 3% cash back on dining and entertainment, 2 % at grocery stores and 1% cash back on all other purchases. And unlike some of the cards mentioned above, the Capital One® SavorOneSM Cash Rewards Credit Card offers a signup bonus. Spend just $500 within the first three months of opening an account and earn a one-time $150 cash bonus, a 30% return on your spend.
There are no annual fees or foreign transaction fees.
The Chase Freedom Unlimited® card is second on our list. Like the previous two cards, the Chase Freedom Unlimited® card gives you 15 months at 0% APR, giving you over a year to pay down your balance before the regular APR kicks in. After that 15-month intro period, an APR of 17.24%-25.99% Variable applies.
You can also earn unlimited 1.5% cash back on every purchase you make. There’s no minimum to redeem your cash back rewards, and you can use them for statement credits, gift cards, or the Ultimate Rewards travel portal.
You can earn 3% cash back on all purchases in your first year up to $20,000 spent. Even if you only use your card for gas and groceries, you could easily meet that threshold to take advantage of the extra cash back.
When it comes to balance transfers, the HSBC Gold Mastercard® credit card is hard to beat. With this card, you get the first 18 months from account opening at 0% APR on balance transfers and new purchases, the longest introductory period on our list. This card also comes with a balance transfer free of 4.00% of the amount of your transfer.
There’s also no annual fee or foreign transaction fee. It doesn’t offer any cash back rewards, but you do get access to a nice host of benefits, including trip planning assistance, roadside assistance, extended warranty protection, purchase protection, and price protection.
Applying for a balance transfer
Taking advantage of a card’s balance transfer introductory offer is a smart way to manage your credit card debt. More of your payment will go toward the principal, helping you save money and pay off your debt faster.
Ready to do a balance transfer? Review credit card offers and apply online.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.