What are the benefits of a balance transfer credit card?

Balance transfer cards can save you hundreds or even thousands of dollars in interest charges if used properly.

The typical 0% intro APR period is 12-18 months.

You can consolidate multiple high-interest credit card balances onto a single balance transfer card, making it easier to manage your debt payments.

Balance transfer fees are typically 3-5% of the transferred amount, but some cards waive the fee for transfers made within the first 60 days.

Using a balance transfer card can improve your credit utilization ratio, which is a major factor in your credit score, by freeing up available credit on your other cards.

Many balance transfer cards also offer rewards programs, allowing you to earn cash back or points on new purchases even as you pay down your transferred debt.

The 0% intro APR only applies to the transferred balance, not new purchases.

So it's important to avoid using the card for new spending during the intro period.

After the intro period ends, the ongoing APR on the card can be higher than your previous cards, so it's crucial to pay off the balance before the 0% deal expires.

Applying for a balance transfer card will result in a hard credit check, which can temporarily lower your credit score by a few points.

Balance transfer cards are best suited for consumers with good to excellent credit, as those with lower scores may not qualify or get the best promotional terms.

You can typically only transfer balances up to a certain percentage of your new card's credit limit, often 95% or less.

Missed or late payments during the 0% intro period can result in the promotional rate being revoked and the card reverting to a higher ongoing APR.

Some balance transfer cards charge an annual fee, which can eat into the interest savings if not waived for the first year.