Finding the Best Balance Transfer Credit Cards: What 2015 Data Reveals

When shopping for the best balance transfer credit cards, the numbers tell an interesting story. A comprehensive survey of 100 major credit cards shows that while market standards remain largely consistent year-over-year, significant variation exists in the fine print—and that’s where smart consumers need to focus their attention. With interest rate changes on the horizon, those carrying balances should lock in favorable terms quickly.

The Market Landscape for Balance Transfers

The foundation of balance transfer offerings remains stable. Nearly nine in ten surveyed cards (88 out of 100) permit balance transfers, with roughly half of those actively promoting the feature through reduced introductory rates. The most typical offer breaks down like this: 0% interest for approximately 12 months, paired with a 3% transfer fee.

However, stability in aggregate doesn’t mean uniformity at the individual card level. Among the 40 cards offering true 0% introductory rates, an additional four provide reduced (though not zero) rates ranging from 2.99% to 10.99% during promotional periods. A handful of issuers take the opposite approach, actually increasing rates for balance transfer activity compared to regular purchases.

Understanding the True Cost: Fees and Fine Print

Fee structures reveal both opportunity and pitfall. Three out of every five balance transfer cards (50 of 88) charge the standard 3% fee on transferred amounts. Seven more cards also charge 3% per transfer with no floor. Notably, fee caps—once standard industry practice—have nearly vanished. Only one issuer (USAA) maintains a fee ceiling at $200.

For perspective on actual savings: a consumer transferring a $7,500 balance to a card offering the most common terms (12 months at 0%, 3% fee) would pay $7,725 total if cleared within the year. Using a conventional 15% APR card over the same period costs $8,123.25—a difference of $398.25 in favor of the promotional offer.

The Speed Factor: Time Windows Matter

Cardholders who want promotional rates must act decisively. Of the 44 cards offering rate reductions, 28 require transfers within 90 days or less. The average window has compressed to 4.5 months from five months previously. This “use it or lose it” dynamic means procrastination carries real consequences—some issuers penalize late transfers by raising fees from 3% to 5%.

Post-Introductory Rates: The Hidden Variable

Perhaps the most overlooked consideration involves what happens after introductory periods expire. Post-promotional balance transfer APRs span dramatically—from a low of 7.99% to a high of 26.99%—and depend entirely on creditworthiness. Three cards perversely charge higher APRs for balance transfers than for standard purchases, making them poor choices for those strategies.

Fee-free cards present another wrinkle: while 12 cards eliminate transfer fees entirely, only two combine this with 0% introductory rates. Most cards force a trade-off between free transfers and discounted rates.

What Changes Ahead?

Federal Reserve interest rate increases, expected as early as December, will reverberate through credit card offerings. Analysts anticipate issuers will either shorten promotional windows or increase fees as deposit costs rise. However, these changes likely won’t occur immediately—initial rate hikes of 0.25% (25 basis points) may not trigger immediate offer modifications.

Card issuers already fine-tune terms regularly. Among 96 cards tracked both years, 30 revised their balance transfer offerings. Some improvements emerged (longer promotional periods), while others deteriorated (shorter introductory windows).

Key Restrictions All Borrowers Should Know

Balance transfer cards operate within strict guardrails designed to prevent “churning”—transferring balances to accumulate rewards risk-free. Common restrictions include:

• Internal transfer bans: 16 of 28 major issuers prohibit balance transfers between their own card products
• Immediate interest application: Cards without promotional rates charge interest immediately; no grace periods exist
• No transfer rewards: No surveyed card permits earning rewards on balance transfer amounts
• Processing delays: Expect 10-14 days minimum for most issuers; some may require up to 30 days

The Bottom Line for Borrowers

Selecting among the best balance transfer credit cards requires looking past headline rates. Compare post-introductory APRs, verify fee structures, confirm transfer window lengths, and understand specific restrictions before applying. For those disciplined enough to leverage these offers strategically, the interest savings can be substantial—but timing and terms comprehension are essential.