Credit card companies have dramatically increased the length of 0% balance transfer credit cards during the past few months. Just one year ago, it was difficult for many consumers to get approved for a balance transfer card with a 0% rate for 1 year. Today, balance transfer offers lasting 15 months and longer are widely available.
Before delving into the current length of balance transfer offers, it is important to note that at present, all 0% APR balance transfer cards issued by major banks carry fees of 3% to 5%. When choosing a card, it is crucial to take these fees into consideration, particularly if you are transferring a large balance, as these fees amount to $30 to $50 for every $1,000 you transfer. While these fees make a small dent in overall savings, a good way to look at these is to compare them to your current interest rate. For example, if you have a 15% interest rate, paying a 3% fee essentially cuts your rate by 80%.
Here is a rundown of both the lengths and transfer fees of current offers, broken down by issuing bank:
Citibank currently offers two credit cards with a 0% APR on balance transfers for 21 months: the Citi Platinum and Diamond, card. All three of these cards carry 3% balance transfer fees, which essentially makes the annual percentage rate 2%. Additionally, Citi offers a 0% APR for 15 months on a second version of the Dividend Card that also provides a $100 cash back bonus. You can compare these offers in the Citi credit card section.
Discover currently offers a 0% APR for 18 months on balance transfers via the Discover More Card. This is the longest balance transfer offer available, but does carry a 5% balance transfer fee. In addition to their 18 month offer, Discover also offers another card with a 0% APR for 15 months on balance transfers and purchases. You can compare these offers in the Discover credit card section.
Capital One only offers one 0% APR balance transfer card, the Platinum Prestige. This card offers a 0% APR for 15 months and carries a 3% fee. The vast majority of Capital One credit cards do not offer 0% rates, but do offer no fee balance transfers. However, unless you are transferring balances from very high rate cards, opting for a 0% offer is likely the best choice. You can compare these offers in the Capital One credit card section.
Chase offers a 0% APR on balance transfers for 15 months with the Chase Slate card, but not all approved applicants will get this rate. In the fine print, it states that some applicants may be approved, but only offered a 0% rate for 6 months. Unless you have pristine credit, it is best to avoid this offer. Chase also offers a 0% APR for 12 months with the Chase Freedom Visa. This card comes with a $100 signup bonus and carries a 3% transfer fee. You can compare these offers in the Chase credit card section.
The remaining major issuers, American Express and Bank of America, largely avoid the balance transfer space. American Express currently has no 0% balance transfer offers, while Bank of America has one below average offer – a 0% APR on balance transfers that lasts between nine and twelve months, based on a review of submitted applications.
Overall, the balance transfer market is very robust at the moment. Just about every major credit card company has at least one above average offer, while Discover and Citibank deals are among the longest 0% deals in history.
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