In this article, we are going to have a look at the best balance transfer credit cards 2022. Balance transfers in credit cards are one of the best hacks of credit cards with which a credit card user can save money.
Now the main question is – what is a balance transfer credit card?
Balance Transfer Credit Card – The Idea
Let’s understand it rather simply-
Suppose you own two credit cards. One of these cards has a low credit limit, and one of these has a comparatively higher expense limit. But, because the one with a low credit limit offers too many discounts everywhere, from airports to online e-commerce shopping, you have used your credit card heavily.
Now, if things get wrong and you somehow fail to clean the expenses, you will incur an unexpected burden and pay extra interest for your extra expense. But with balance transfer credit cards, you can transfer some balance of your credit card to another credit card.
How Does A Balance Transfer Credit Card work?
The working process of a balance transfer credit card is quite simple. Let’s continue with our aforesaid example. Let’s say you own two credit cards, ABC and XYZ. ABC bank’s credit card has a lower credit limit, but XYZ’s has a greater credit limit. After doing excessive use of ABC’s card, this is how the credit card’s balance transfer will work –
Once you do a credit card balance transfer –
- The balance of ABC’s credit will get transferred to XYZ’s credit card.
- And, you owe credit to XYZ bank.
- You end up repaying XYZ bank now.
Well, after getting to know balance transfer in credit cards and the working principle of a balance transfer credit card, let’s see what names are listed in this list.
Best Balance Transfer Credit Cards 2022
- Bank of America balance transfer credit card
- Wells Fargo Reflect Card
- Citi Double Cash Card
- Chase Freedom Unlimited credit card
Now know about these best balance transfer credit cards in detail.
1. Bank of America Balance Transfer Credit Card:
What can be more exciting than getting a credit card with no annual fees? , this credit card from Bank of America blew our minds. Named a ‘Customized Cash Rewards credit card,’ this credit card from Bank of America has 0 annual fees.
The excitement about the card does not end up here. As a new customer of Bank of America’s Customized Cash Rewards credit card, they offer a reward of $200 if you make any purchase of more than a thousand dollars within the first 3 months of opening your account in the bank.
The credit score required for the card ranges between 700 to 749.
The annual payment rate of the card is between 17 – 27 %, and it varies based on what you are purchasing and how you use the card.
Bank of America Balance Transfer Credit Card Pros
- Attractive welcome bonus.
- No annual fees.
- APR is comparatively high.
- Charges fees for foreign trades.
2. Wells Fargo Reflect Card
Though Wells Fargo Reflect Card does not come with many of the attractive as the above one does, there are some offers that the credit card provides, and these are the things that make the credit card one of the best cards to be selected as a good balance transfer credit card.
From the date of opening an account to the long 18 months, you literally have to pay 0% APR on your transaction of balance transfers. The same offer is applicable for users who want to use the credit card as a normal credit card for normal purchases.
However, the balance transfer charge with the credit card is between 3% – 5%, calculated on the transaction amount.
The annual fee for Wells Fargo Reflect Card is absolutely 0.
The credit score required to be eligible for the card ranges the same as the above one (i.e., 700-749)
If you pay your cell phone bills with this credit card, you will be able to get compensation of up to 600 US dollars if your mobile phone gets damaged or stolen.
Wells Fargo Reflect Card Pros
- Presents a great offer for new users.
- Offers special protection offers for users paying cell phone bills with the card.
Wells Fargo Reflect Card Cons
- Charges fees while doing a balance transfer.
- Charges penalty fees if no balance transfer is done between certain fates of opening the account.
Citi Double Cash Card – Best Balance Transfer Credit Card
Citi Double Cash card can be one of the best choices if you want a credit card that offers unlimited rewards irrespective of the number of transactions you perform. It is one of the best options on this list to consider for a long-term view.
It offers a flat 1% cash back on every purchase, and when you square off those purchase bills, this card will again reward you with another flat 1% cashback. It also has the exact same credit score requirement.
Here, the annual payment rate varies from almost 17 % to almost 27%. The good news is that if the card is used only for balance transfers, there is no annual payment rate for that, but the bad news is that there has to be a certain fee for balance transfers.
Pros of Citi Double Cash Card
- An absolute choice for gaining cash back.
- Offers welcome bonus.
Cons of Citi Double Cash Card
- Require fees for a balance transfer.
- Does not offer rewards for new customers.
Citi Diamond Preferred Card
Down the list comes the name of the Citi Diamond Preferred credit card.
Citi Diamond Preferred credit card is one of those cards that offers the longest 0% APR on balance transfer of credit cards. The current duration is 21 months which means that from the date of being eligible for the card for 21 months you don’t have to pay a single penny as APR for a balance transfer.
After the offer period ends, the users must pay according to the regular APR (i.e., 15.99% – 26.74%).
The main down point of the card is its high balance transfer fees. The minimum fee for any balance transfer is $5; however, it can range as high as 5% of the entire transactional amount.
Citi Diamond Preferred Card Pros
- Long-term 0% annual payment rate on balance transfer.
- Does not charge any annual fees.
Citi Diamond Preferred Card Cons
- Does not come with attractive cash-back offers or rewards.
- Heavy transaction fees for balance transfers.
Chase Freedom Unlimited Credit Card
If you want a credit card with a bit high balance transfer fees but still offers good rewards, you can look for a Chase Freedom Unlimited credit card. Chase Freedom Unlimited offers 1.5% cash back on every purchase for a purchase of $20,000 in the first year, making it the highest cashback rewarded in this list.
It also offers great discounts on different occasions like travel programs purchases etc., but all this gets included in the threshold of $20,000. Another good thing about the credit card is that card requires no minimum amount for redemption, and the cashback you have been rewarded with does not expire unless you have closed your account.
The APR of the card is between 17.24% – 25.99%. The main reason not to go for the above card is present with this card also – high transaction fees.
Chase Freedom Unlimited Credit Card Pros
- Excellent cash back provider.
- Requires no minimum redemption amount.
Chase Freedom Unlimited Credit Card Cons
- High fees for a balance transfer.
- APR is also high.
So this was the list of the best balance transfer credit cards. We have included 4 credit cards in this list. Every credit card mentioned in the list has an APR of 0%. We have avoided including 2 or more cards offering the same features.
Each of these cards offers different features – some have low APR, some provide great rewards, and some offer heavy cashback. We think this article will help you determine the best balance transfer credit card and choose your own with the information you have gotten from this page.