If you have large credit card debt, consider refinancing it with a balance transfer credit card. Maintaining a balance on a credit card becomes increasingly difficult, especially when interest rates rise. Average APRs for credit cards range from about 15% to 20%, and some cards have rates approaching 30%.
With a prepaid card, you may be able to benefit from an interest rate of 0% for the first 21 months. That could save hundreds or even thousands of dollars from your interest payments, enough to offset the balance transfer fee of 3% to 5% of the amount transferred and still save you money.
But to get the most out of a balance transfer — and to recoup the investment you’ve made in that transfer fee — you need to pay off the debt before the 0% window expires. After the 0% period is over, the APR on the remaining balance usually jumps into the double digits.
We have compiled the best credit cards for prepaid transfers. All of them have extended 0% introductory windows and charge reasonable 3% balance transfer fees. (Some cards require you to transfer the balance immediately after opening the card to capture the 0% rate or 3% fee – otherwise you’ll pay a higher APR or fee.) If you’re after a great reward – Look for credit card instead see The Best Cash Back Credit Cards and The Best Travel Rewards Credit Cardsalong with The best student reward cards.
BankAmericard credit card
Bank of America BankAmericard Mastercard offers 0% APR on deposit transfers for a long 21 months, as long as you make the transfer within the first 60 days of opening your account. After 21 months you pay the variable standard rate – most recently it was 14.99% to 24.99%. The fee for transferring the balance is 3% of the amount transferred (minimum $10).
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Wells Fargo Reflect Visa
With Wells Fargo Reflect Visa, receive 18 months of 0% APR on purchases and balance transfers, plus up to three additional months interest-free if you pay at least the minimum amount due on time during the introductory and renewal periods, for a total of 21 months of 0% interest (claim transfer within 120 days of opening the card to receive the introductory rate). Then you pay variable from 15.99% to 27.99%. The account transfer fee is 3% (minimum $5) of the amount transferred within 120 days of opening the account; after that it’s 5% with a $5 minimum.
An extra bonus: you get up to USD 600 in protection for your mobile phone against damage or theft per claim if you use the card to pay your monthly WiFi bill. You pay a $25 deductible and receive up to two paid claims per 12 months.
Citi Double Cash Mastercard
That Citi Double Cash Mastercard offers 0% APR for 18 months on balance transfers. Thereafter, the rate varies between 16.99% and 26.99%. The account transfer fee is 3% of the amount transferred (minimum $5) within four months of opening the account. After that, the fee increases to 5% (minimum $5).
Citi Double Cash is also an excellent rewards card, offering a total of 2% cashback on every purchase. For more information, see The best cashback credit cards.
US Bank Visa Platinum
Receive a 0% rate on purchases and balance transfers for 18 months US Bank Visa Platinum, followed by a floating rate, which was last between 17.49% and 27.49%. The fee for transferring the balance is 3% of the amount transferred (minimum $5).
This card also comes with mobile phone insurance. You can get reimbursed up to $600 per claim if your phone is stolen or damaged when you use the card to pay your monthly cell phone bill. The deductible is $25 and you get up to two claims payments per 12 months.