Delmaine Donson/ Getty Photos; Illustration by Austin Courregé/Bankrate
Key takeaways
- Prolonged bank card stability switch presents can imply the distinction between paying a whole lot in curiosity and paying nothing in any respect.
- Stability switch playing cards with 21-month intro intervals will help you repay debt, however they carry few advantages past the intro interval.
- Alternate options for paying down debt embrace shorter intro intervals and consolidation loans.
A stability switch card may be an efficient money-saving choice for paying down high-interest bank card debt — and the longer the introductory interval, the better your potential financial savings. Whilst you’ll discover many wonderful stability switch playing cards in the marketplace, it’s turn out to be tougher just lately to seek out bank cards with 0 % APR for 21 months.
That stated, you do nonetheless have choices when you’re searching for a longer-than-typical intro APR supply. We element a number of of your 21-month intro supply card choices, in addition to the professionals and cons of that prolonged APR supply and options to contemplate for paying down your debt.
Playing cards that provide 21 months of 0% APR for stability transfers
These playing cards supply a number of the longest intro APR intervals for stability transfers in the marketplace.
Who ought to get this card?
The Citi Simplicity works greatest for somebody with good credit score to wonderful credit score — a FICO rating of 670 to 850 — who wants a prolonged stability switch interval however can get by with a shorter intro buy interval. The low-end-of-normal intro stability switch price of three % might add as much as substantial financial savings over a card that expenses the everyday 5 % price.
For instance, when you switch $5,000 to Citi Simplicity, its 3 % stability switch price would tack on one other $150 for a complete stability of $5,150 to repay. However a card that expenses a 5 % stability switch price would add $250 to your stability, totaling $5,250.
Who ought to get this card?
Citi Diamond Most well-liked presents entry to Citi Leisure and has a number of further perks, but it surely isn’t as splendid a card for stability transfers as in comparison with others on this listing. Its larger stability switch price places it behind the Citi Simplicity. If you happen to’re searching for a Citi stability switch card, there isn’t a compelling motive to decide on this one over Simplicity.
Who ought to get this card?
Wells Fargo Mirror presents an equally prolonged 21-month intro 0 % APR on each qualifying purchases and stability transfers for folks with at the very least good credit score. If it’s essential to each switch present high-interest debt and make new purchases to repay over time, this card is a strong selection.
Who ought to get this card?
The U.S. Financial institution Visa Platinum card checks all of the packing containers with its limited-time supply of an intro 0 % APR for 21 billing cycles on purchases and stability transfers (earlier than the continuing 18.74 % to 29.74 % variable APR kicks in). Plus, it has a decrease stability switch price than Wells Fargo Mirror. If you may make your switch inside the first 60 days, this card needs to be on the high of the listing for you.
Different choices
Searching for extra decisions? Test along with your native or affinity-based credit score union. Whereas credit score unions don’t promote their merchandise as extensively as bigger conventional banks, they typically supply extremely aggressive charges on mortgage merchandise, together with bank cards.
Execs and cons of bank cards with 0% APR for 21 months
Playing cards designed solely for stability transfers or avoiding curiosity on purchases are a boon to cardholders who might carry a stability or wish to repay high-interest debt. Weigh the benefits and drawbacks of those playing cards earlier than making use of.
Execs
- Helps you pay down debt. At 21 months to repay debt interest-free, these are among the many longest intervals you’ll discover on any card. Practically two years to pay down a stability with out accruing curiosity may be life-changing for folks.
- Good for big purchases. The most effective 0 % APR playing cards additionally supply an interest-free interval for purchases, so you may finance giant bills over time.
- Could profit your credit score utilization ratio. Whenever you open a brand new card, your accessible credit score will increase. So long as you don’t make purchases along with your new card and deal with paying down debt, your credit score utilization ratio will lower, which will help your credit score rating.
Cons
- Fewer options or rewards. Devoted stability switch playing cards are likely to lack the identical perks accessible on a rewards card, comparable to money again, a signup bonus or travel-related options.
- Stability switch charges may be excessive. Most stability switch playing cards cost a price in your transferred stability that’s between 3 % and 5 % of the transferred quantity. Relying on how a lot cash you switch, this may end up in important further prices.
- Credit score necessities are excessive. The most effective stability switch presents require a very good to wonderful FICO rating of 670 or larger. That is unlucky, as cardholders with poor monetary well being are most definitely to profit from an extended stability switch interval.
- Can’t transfer balances from the identical financial institution. Banks normally don’t mean you can switch balances between their merchandise. It means when you already maintain a Citi card, you may’t open a Citi Simplicity and transfer the stability to that card. If you happen to’re on this state of affairs, select a card that isn’t along with your present issuer or think about an alternative choice to paying down your debt.
Alternate options to a 21-month interest-free bank card
Opening a 21-month stability switch bank card is a good first step to paying down your debt, however different debt compensation choices may work higher on your state of affairs. Listed here are a number of solutions.
The underside line
A stability switch card is among the many greatest instruments for paying down your debt interest-free with minimal trouble, and a 21-month intro interval can provide the most wiggle room to make your funds comfortably. Given the current tendencies in stability switch playing cards shortening their intro intervals or elevating stability switch charges, it’s possible you’ll wish to apply quickly when you’ve had your eye on a selected supply.
*Details about the U.S. Financial institution Visa® Platinum Card, Citi Simplicity® Card and Citi® Diamond Most well-liked® Card has been collected independently by Bankrate. Card particulars haven’t been reviewed or authorized by the cardboard issuer.
