Transferring the balance from a high-interest credit card to a lower interest card can make a lot of sense when trying to pay down debt. Some credit card companies will waive the interest on balance transfers for up to 24 months.
However, the catch is most card companies usually charge a 3 or 4 percentage fee of the amount transferred. These transfer fees can add up to big bucks and wipe out a good part of the savings from a low-interest APR. There are a few banks that offer a zero percent interest rate card and also waive the fee for balance transfers. While many of these offers are from lesser-known card companies, there are a few credit cards offered by long-established banks that offer both benefits. Here are the top three.
Citi Double Cash Card
The Double Cash Card from Citi is a workhouse among credit cards. This card offers 0% interest for 18 months on balance transfers with a superior double one-percent cash back rewards program. This card offers you one-percent cash back on all purchases and then another one-percent cash back when the purchases are paid off.Rewards can be claimed in the form of a credit-card statement credit, bank account deposit, check or gift card. Unlike most cash-back rewards cards, there is no cap on how much you can earn. With the additional benefit of a $0 annual fee, the Citi double cash card is tough to beat. Here is a full list of features:
- $0 annual fee
- Zero-percent interest rate on balance transfers for 18 months, changing to a 14.49 – 24.49-percent APR after 18 months.
- Earn one-percent cash back on every purchase made.
- Earn an additional 1-percent cash back for every dollar that is paid off.
- No limit on rewards.
- Begin redeeming rewards with as little as a $25 in earnings.
A great additional perk of this card is Citi Price Rewind. When you register purchases online Citi will notify you if there are lower prices for that items and refund you the difference.
The current king of low-interest credit cards, the Citi Simplicity card boasts no late fees – ever! This alone is virtually unheard of in the credit-card industry, but marry that with a Citi’s industry-leading zero-percent introductory APR period and you have a winner! Here is a full list of features:
- $0 annual fee.
- Zero-percent interest rate on balance transfers for 21 months, changing to a 14.49 – 24.49-percent APR after 21 months.
- One of the longest zero-percent introductory APR periods in the industry.
- No late fees or penalties of any kind if you miss a payment.
- Offers the convenience of setting up a personalized bill-payment schedule for any offered due date of the month.
If you’re looking to pay down existing debt or planning a large purchase you can take some time to pay off, this card from Citi is a solid option.
Chase Freedom Rewards Card
The Freedom Rewards Card from Chase Bank gives cardholders a 0% interest introductory APR for the first 15 months after opening the account on both purchases and balance transfers.The Chase Freedom Rewards card also provides a five-percent cash back bonus in quarterly rotating categories and a one-percent cash back bonus for all other purchases. Here is a full list of features:
- Zero percent interest for 15 months on both purchases and balance transfers, changing to a variable APR of 15.99-24.74 percent.
- No annual fee.
- A $150 bonus after spending $500 in the first 3 months after opening the account.
- No minimum spending needed to redeem cash back rewards.
- Cash Back rewards do not expire as long as the account remains open.
- A five-percent cash back bonus in quarterly rotating categories such as gas stations, restaurants, and drugstores, with up to $1,500 spending per quarter.
- An automatic 1.5% cash back bonus for all other purchases.
For a good all-around card, the Freedom Rewards card from Chase is hard to beat.