by Daniel | Last Updated Feb 15th, 2022
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If you have an outstanding debt on your credit card that has a high APR, it might be worth looking into a balance transfer credit card, as this can be an effective way to reduce your interest rate to 0%, which can save you a lot of money.
In this article, I’m going to review 3 different balance transfer credit cards, I’ll also explain what a balance transfer credit card is and what to look for when choosing one.
What is a Balance Transfer Credit Card?
Basically, it is a credit card that allows you to transfer debt from one account (that is probably charging a fair amount of interest) to another account that has a very low APR).
And this means that is possible to pay off the debt interest-free, which should save you a lot of money.
Now it’s important to know that even if you have transferred your debt to an account that has a 0% APR, you will still need to meet the minimum required payments that are due on time, and any other charges that have been made to the new card.
The reason for this is simple, by missing a payment or making a late payment on pretty much any credit card, you will more often than not be given a Penalty APR which can be a rate of up 29.99%, or even more, which can in some cases be kept on your account indefinitely.
Also, if this happens it is unlikely that you will get the introductory APR offer again.
So if you are put on a Penalty rate it can be a pretty big shock the following month when the card issuer sends you a bill for the interest that you owe.
And for this reason, it is important to be extremely careful to go over all of the details of any credit cards that you might be considering using for a balance transfer.
Something else worth considering is how much debt you actually transfer to the new account because if it is a large amount, it could put your credit utilization ratio well over 30%, which is not a good idea, as this will most likely negatively affect your credit score.
APR and Balance Transfer Fee
So now let’s take a look at one of the more important sections of this review, which is the APR.
And all of the cards on this list are offering a 0% introductory APR on both purchases and balance transfers, but they all differ slightly.
Starting first with the Chase Freedom Flex card there is a 0% Intro APR for 15 months for both purchases and balance transfers.
After the intro period is up, the APR will be a variable rate of 14.99% -23.74%.
There is an introductory fee for balance transfers of either $5 or 3% of the amount of each transfer and depends on whichever is greater.
And this intro fee is only available for the first 60 days after opening the account, after this, it will be either $5 or 5% of the amount, whichever is greater.
Next up, with the Wells Fargo Reflect card there is a 0% intro APR for 18 months for purchases and qualifying balance transfers.
And this 0% APR can actually be extended for an additional 3 months as long as you make every minimum payment on time during the introductory period.
So it is possible to get a 0% APR for up to 21 months if you are consistent with your payments.
After the 0% APR offer is over, it will be a variable rate of between 12.99% and 24.99%.
The fee for balance transfers is the same as Chase Freedom Flex card, which is either $5 or 3% of the amount of each balance transfer, whichever one is greater.
And this Introductory fee is available for 120 days from the time you open the account, which just happens to be twice a long as the Chase card.
After this period, the fee will change to either 5% or $5, again whichever amount is greater.
And finally, with the Citi Diamond Preferred Card, you will get a 0% intro APR for purchases for 12 months, and for balance transfers, you will actually get a 0% intro APR for 21 months, but just note that balance transfers must be completed within 4 months of opening the account.
After the intro APR has ended it will be a variable rate of between 13.74% and 23.74%.
The fee for balance transfers is either $5 or 5%, whichever is greater.
So, for this section, both the Wells Fargo Reflect Card and the Citi Diamond Preferred card offer the longest 0% APR for balance transfers, with up to 21 Months of 0% APR.
And the Chase Freedom Flex card offers 15 months, which although it is 6 months less than the other two cards, it is still pretty decent, but as you you will see in the next few sections it has a lot more to offer when it comes to a sign-up bonus, earning cash back and benefits and user perks.
Sign-up Bonus
Now for this section, only Chase Freedom Flex card has a sign-up bonus which is currently 20,000 bonus points that can actually be redeemed for $200 in cash back, and this is available after making $500 in purchases within the first 3 months of card ownership.
And just a side note, balance transfers do not qualify as a purchase towards earning this bonus.
Earning Cashback
So for this section, similar to the last, only the Chase Freedom Flex card offers rewards for using the card.
Initially, for the first year of card ownership, you will be able to earn 5% cash back on gas station purchases up to $6,000, and if taken full advantage of is worth $300.
You will then get 5% cash back on all travel that is purchased through Chase Ultimate Rewards.
Each quarter you will be given 5% cash back on up to $1,500 on combined purchases from a specific set of categories that are determined by Chase.
Then from here, you will receive 3% cash back for drugstore purchases and at restaurants, which includes takeout and delivery.
And then all other purchases will receive 1% cash back.
Benefits, User Perks and Insurance Related Coverage
Next up, let’s take a closer look at some of the benefits and insurance-related coverage that are offered with these cards.
And starting with the Chase Freedom Flex card you will get the most value seeing that it gets Mastercard World Elite Benefits.
So first of all you will receive a complimentary 3-month DashPass that gives you $0 delivery on orders that are over $12, and after the 3-month subscription is up, you will automatically be enrolled for the following 9 months at a 50% discounted rate.
If you ride with Lyft 3 times a month you will receive a $5 Lyft credit, and until the end of March 2022, you will also receive 5% cash back.
Purchases of $20 or more at Fandango will receive a $5 Fandango credit.
You will receive a complimentary 1-year ShopRunner membership which has benefits that include free 2-day shipping and free returns from over 100 stores across the US.
And finally, you can earn 5% back on a HelloFresh meal kit delivery plan that can be used towards the next delivery from HelloFresh.
Now when it comes to insurance-related coverage there is a fair bit on offer.
First of all, you will receive cell phone protection of up to $800 per claim and a total of $1,000 per year if your cell phone is damaged or stolen.
And this allows for a maximum of 2 claims in a 12 month period, with each claim incurring a $50 deductible fee.
You will be covered by purchase protection for up to 120 days against damage or theft of a new purchase, and this covers up to $500 per claim and $50,000 per account.
There is extended warranty protection of 1 extra year on all US manufacturers warranties that are 3 years or less.
You will be covered by an auto rental collision damage waiver that protects you against theft or collision damage of a rental car.
And finally, if a trip that you have paid for with the card is canceled or cut short due to sickness you will be covered by trip cancellation/interruption insurance for up to $1,500 per person and $6,000 per trip.
Next up with the Wells Fargo Reflect card you will also get cell phone protection, but it Is slightly less than what the Chase Freedom Flex Card covers.
Currently, it covers up to $600 and has a $25 deductible fee for any claims that are made, with a limit of 2 claims per 12 month period.
And then finally you will be covered by zero liability protection, which protects you against any unauthorized transactions that are made to your account.
Now with the Citi Diamond Preferred card, you will get a couple of perks.
The first is access to Citi Entertainment, and this gives you special access to a variety of different events throughout the year.
And then finally you will be covered by $0 liability on unauthorized charges that are made to your account.
So when it comes to getting the most value out of a credit card for this section, the Chase Freedom Flex Card clearly offers the most benefits.
Final Thoughts
So what are my thoughts about these 3 balance transfer credit cards?
I think each of these cards serves the purpose that they are designed too, which is to provide the ability to transfer debt from a high-interest account to a low or 0% interest account.
If you are looking for a balance transfer card that actually offers some pretty good cash back from spending and a decent sign-up bonus, then the Chase Freedom Flex card is the best choice.
But, If you’re not too worried about earning cash back and are looking for a longer 0% intro APR, then either of the other two cards are a good choice.
Anyway, that pretty much wraps it up, if you would like to see my review of the best no annual fee credit cards available now you can check out my review here.