Thus far, the best balance transfer credit cards of 2012 offer consumers greater value and savings potential than 2011′s offers did. This is somewhat surprising, as the quality of balance transfer offers available in 2011 was higher than it has been since early 2004.
Overall, average balance transfer credit cards tend to offer a 0% APR for 12 months while charging transfer fees of slightly more than 3%. The best offers listed below provide longer 0% interest periods, charge low and/or no fees or provide bonus incentives that can offset balance transfer fees.
Here is a breakdown of the 10 best balance transfer offers of 2012 ranked by overall value.
1.) Discover More Card – Limited Time No Fee Balance Transfer: As was the case in 2011, Discover is running a limited time promotion that provides applicants with a 0% APR for 12 months on balance transfers and purchases while waiving the standard 3% balance transfer fee charged by most issuers. While the 0% period offered is on the shorter side, this is an ideal card for consumers who only need a few months to repay credit card debt and can save more by avoiding transfer fees than they could with a longer 0% APR.
2-4.) Citi Platinum Select, Citi Diamond Preferred and Citi Simplicity: Citibank’s three value oriented credit cards share a common benefit for consumers – a 0% APR lasting 18 months on balance transfers as well as purchases. All three cards offer essentially the same features, charge low 3% balance transfer fees and provide the longest 0% rates available. These elements make any of these three cards ideal for consumers who need more than a year to repay credit card debt as well as those who anticipate the need to make future purchases that cannot immediately be repaid.
5.) Citi ThankYou® Card: The Citi Thank You Card, while not the longest balance transfer offer available, does feature the longest 0% introductory rate on balance transfers and purchases amongst rewards credit cards. At 15 months, this card provides ample time to repay balances while also allowing cardholders to earn rewards on purchases made.
6.) Citi Dividend $100 Cash Back Bonus: The Citi Dividend card is a good option for consumers who can repay credit card balances in 12 months or less and also want to earn rewards on future purchases. Additionally, the $100 cash back bonus earned once $500 in purchases is made can offset the cost of balance transfer fees on a $3,300 transfer. Consumers transferring smaller amounts can thus earn more via the cash back bonus than they might otherwise save by opting for a no fee balance transfer card.
7.) Discover More Card – Balance Transfer Fee: Apart from their no fee offer, Discover also offers a card with a 0% APR for 18 months on balance transfers. This card charges a standard 3% fee. However, unlike many competing offers, this card only offers a 0% APR on purchases for six months. This short period can be an issue for consumers who will use their cards for both purchases and balance transfers, as new purchases will start accruing interest long before the 0% balance transfer rate expires.
8.) Discover More Card: Discover’s flagship card is a better fit for consumers intending to make purchases and balance transfers than their 18 month offer. This balance transfer card offers a 0% APR for 15 month that applies to both purchases and balance transfers.
9.) Chase Freedom $100 Cash Back Bonus: The Chase Freedom card is similar to the Citi Dividend card in that it offers a 0% APR for 12 months on purchases as well as a $100 cash back bonus. However, a key difference between these two offers is the length of the 0% APR for purchases. With Chase Freedom, the 0% length is only 6 month, making this less ideal for those who will be making purchases as well as transferring balances.
10.) Capital One Platinum Prestige: The Capital One Platinum Prestige card offers a 0% APR promotion on balance transfers and purchases that is slightly different than what is typically offered. Rather than a specific number of months, this card offers a 0% rate until a certain month that is typically 14 to 15 months away. However, because of the time it takes to apply, get a card and complete a balance transfer, the length of this card’s offer can wind up being much shorter than the implied length would lead one to believe..
For additional information on current offers as well as in depth articles and tips on maximizing the benefits of balance transfers, please see the main section of Smart Balance Transfers.
