Delmaine Donson/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
- Lengthy credit card balance transfer offers can mean the difference between paying hundreds in interest and paying nothing at all.
- Balance transfer cards with 21-month intro periods can help you pay off debt, but they carry few benefits beyond the intro period.
- Alternatives for paying down debt include shorter intro periods and consolidation loans.
Carrying a credit card balance often means paying a high annual percentage rate (APR) each month, which can easily push you further into the cycle of debt. A balance transfer card can be an effective money-saving option to help you end that cycle. With these cards, you can transfer your high-interest debt and pay it down over a low- or no-interest introductory APR period. And the longer the introductory period, the greater your potential savings.
The best balance transfer cards on the market have intro periods of 21 months — and in one case, even longer. Here are the top 21-month intro APR cards, as well as the pros and cons of signing up for one:
Cards that offer 21 months of 0% APR for balance transfers
These cards offer some of the longest intro APR periods for balance transfers on the market.
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- Intro balance transfer APR offer: 0% for 21 months on Balance Transfers
- Intro purchase APR offer: 0% for 12 months on Purchases
- Ongoing APR: 18.24% – 28.99% (Variable)
- Balance transfer fee: There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
- Annual fee: $0
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The Citi Simplicity® Card* is a credit card that’s light on features and designed for one purpose: balance transfers. The card charges no annual fee, and its intro balance transfer fee falls on the lower end.
The Citi Simplicity works best for someone with good to excellent credit — a FICO score of 670 to 850 — who needs a lengthy balance transfer period but can get by with a shorter intro purchase period. The intro balance transfer fee of 3 percent could add up to substantial savings over a card that charges the typical 5 percent fee.
For example, if you transfer $5,000 to Citi Simplicity, its 3 percent balance transfer fee would tack on another $150 for a total balance of $5,150 to pay off. But a card that charges a 5 percent balance transfer fee would add $250 to your balance, totaling $5,250.
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Pros
- Its minimal fees — including no annual fee, late fee or penalty APR — can be helpful when getting a handle on credit card debt.
- The intro balance transfer fee is on the lower end compared to rival cards.
Cons
- With no rewards, it offers minimal long-term value once the intro APR expires.
- The intro period for purchases is short compared to other cards on the market.
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- Intro balance transfer APR offer: 0% for 21 months on Balance Transfers
- Intro purchase APR offer: 0% for 12 months on Purchases
- Ongoing APR: 17.24% – 27.99% (Variable)
- Balance transfer fee: Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
- Annual fee: $0
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The Citi® Diamond Preferred® Card* is nearly identical to the Citi Simplicity in terms of intro APR offers. It offers a few more perks than Citi Simplicity, including access to the Citi Entertainment portal, but it falls short of Simplicity in terms of fees: Diamond Preferred charges a higher initial balance transfer fee as well as late fees and a penalty APR.
If you’re looking for a Citi balance transfer card, there isn’t a compelling reason to choose this one over Simplicity unless you really want access to Citi Entertainment and can afford the higher fees.
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Pros
- It offers more perks than the Citi Simplicity, including access to Citi Entertainment and your FICO score.
- Its ongoing interest rate is lower than its sibling card.
Cons
- The balance transfer fee is on the higher end, so a transfer could be costlier with this card.
- With more fees than the Citi Simplicity, including late fees and a penalty APR, missing a payment can add to your debt.
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- Intro balance transfer APR offer: 0% intro APR for 21 months from account opening on qualifying balance transfers
- Intro purchase APR offer:0% intro APR for 21 months from account opening
- Ongoing APR: 17.24%, 23.74%, or 28.99% Variable APR
- Balance transfer fee:5%, min: $5
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The Wells Fargo Reflect® Card goes a step further than the Citi cards by offering the same intro period length for purchases as they do for balance transfers. However, it also charges a 5 percent ($5 minimum) balance transfer fee, placing the card behind Citi Simplicity in terms of upfront balance transfer cost.
The intro APR terms make this card a compelling choice for people with at least good credit who need to both transfer existing high-interest debt and pay off purchases over time.
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Pros
- You can take advantage of a long intro offer on both qualifying balance transfers and purchases — a rare feature.
- Wells Fargo’s cellphone protection kicks in when you pay your mobile bill with your card.
Cons
- This card does not offer an intro balance fee.
- While you can enjoy some perks, the long-term value of this card is minimal since it doesn’t offer consistent rewards.
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- Intro balance transfer APR offer: 0% intro on balance transfers for 24 billing cycles
- Intro purchase APR offer: 0% intro on purchases for 24 billing cycles
- Ongoing APR: 17.74% – 28.74% Variable
- Balance transfer fee: N/A
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At the time of writing, the U.S. Bank Shield™ Visa® Card* offers the longest 0 percent intro APR period out of any card on the market — and that’s true for both balance transfers and purchases. Plus, you have the opportunity to earn perks like:
- 4 percent on air, car rental or hotel reservations booked through the Rewards Center
- A $20 annual statement credit for 11 consecutive months of purchases
- Cellphone protection when you pay your monthly cellular bill with your card
This card is great for those with good to excellent credit who want a full two years to pay off their balance and don’t mind paying a higher balance transfer fee to do it. However, you’ll need to complete your balance transfer within 60 days if you want to take advantage of the promotion.
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Pros
- You get two full years to pay down your balance interest-free (followed by a 17.74% – 28.74% variable APR)
- You get additional perks like cellphone protection, cash back and even a statement credit.
Cons
- The balance transfer fee is high at 5% ($5 minimum) and may cut into your potential savings if you didn’t otherwise need the extra 3 months to pay off your balance.
- The cash back may not prove to be very useful if you don’t plan on using your U.S. Bank Shield card to book travel, and you need to make purchases on your card for 11 consecutive months to get your statement credit.
Looking for more choices?
Check with your local or affinity-based credit union for credit cards. While credit unions don’t advertise their products as widely as larger traditional banks, they often offer highly competitive rates on loan products, including credit cards.
Pros and cons of credit cards with 0% APR for 21 months
Cards designed solely for balance transfers or avoiding interest on purchases are a boon to cardholders who may carry a balance or want to pay off high-interest debt. Weigh the advantages and disadvantages of these cards before applying.
Pros
- Helps you pay down debt. At 21 months to pay off debt interest-free, these are among the longest periods you’ll find on any card. Nearly two years to pay down a balance without accruing interest can be life-changing.
- Good for large purchases. The best 0 percent APR cards also offer an interest-free period for purchases, so you can finance large expenses over time.
- May benefit your credit utilization ratio. When you open a new card, your available credit increases. If you don’t make purchases with your new card and focus on paying down debt, your credit utilization ratio will decrease, which can help your credit score.
Cons
- Fewer features or rewards. Dedicated balance transfer cards tend to lack the same perks available on a rewards card, such as cash back, a sign-up bonus or travel-related features.
- Balance transfer fees can be high. Most balance transfer cards charge a fee on your transferred balance that’s between 3 percent and 5 percent of the transferred amount. Depending on how much money you transfer, this can result in significant extra costs.
- Credit requirements are high. The best balance transfer offers require a good to excellent FICO score of 670 or higher. This is unfortunate, as cardholders with poor financial health are most likely to benefit from a long balance transfer period.
- Can’t move balances from the same bank. Banks usually don’t allow you to transfer balances between their products. It means if you already hold a Citi card, you can’t open a Citi Simplicity and move the balance to that card. If you’re in this situation, choose a card that isn’t with your current issuer or consider an alternative to paying down your debt.
Alternatives to a 21-month interest-free credit card
Opening a 21-month balance transfer credit card is a great first step to paying down your debt, but other debt repayment options might work better for your situation. Check out these suggestions.
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If you can pay off your debt in less than 21 months, a shorter intro period might open up your balance transfer card options dramatically. Many rewards credit cards offer intro periods of 12 to 18 months and, thanks to their rewards programs, can remain valuable additions to your wallet even after the intro APR period ends.
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A debt repayment strategy, like the avalanche or debt snowball methods, doesn’t require opening a new credit card. These strategies build momentum by prioritizing debt by interest rate or amount so you can focus on one account at a time.
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A debt consolidation loan works like a balance transfer card: You move your separate debts into a single account, simplifying your payments. The biggest advantages debt consolidation loans have over balance transfer cards are that you may be able to borrow more money with a loan, and you can combine multiple debts under one payment plan and interest rate. The most common type of debt consolidation loan is a personal loan, though homeowners also have the option of a home equity loan.
The bottom line
A balance transfer card is among the best tools for paying down your debt interest-free with minimal hassle, and a 21-month intro period can give you the most wiggle room to make your payments comfortably. Given the recent trends in balance transfer cards shortening their intro periods or raising balance transfer fees, you may want to apply soon if you’ve had your eye on a particular offer.
*Information about the U.S. Bank Shield™ Visa® Card, Citi Simplicity® Card and Citi® Diamond Preferred® Card has been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
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