Editor’s Note: Credit card offers from U.S. Bank are not currently available on CNBC Select. If you’re looking for options, you can explore offers from other major credit card issuers like Chase or American Express through their credit card marketplace or browse their list of the best credit cards available now.
Why Are 0% APR Balance Transfer Offers Disappearing?
Over the past few months, the effects of the COVID-19 pandemic have continued to impact millions of Americans. Many people have lost their jobs, seen their income drop, or struggled to keep up with everyday bills like groceries, rent, and mortgage payments.
If you’ve been finding it hard to pay off your credit card balances, you might be thinking about using a balance transfer card that offers a 0% APR introductory period to give yourself some breathing room from high interest charges.
These cards have been popular because they offer a period—sometimes up to 20 months—where you can transfer your existing credit card debt and pay no interest during that time. However, due to the current economic uncertainty, many credit card companies have scaled back these offers, reduced the length of the 0% APR periods, or eliminated them altogether.
Some major issuers—like Citi and American Express—have changed their policies on balance transfer offers to better manage risk during unpredictable financial times.
A spokesperson from Citi told Select:
“We’ve made some changes to reduce risk for both customers and the company, including cutting back on certain offers like balance transfers. We’re continuing to monitor the economic environment and will adjust our strategy as needed.”
For example, Citi had previously shortened the 0% APR period for its Citi Simplicity® Card, but it has since restored the introductory offer to a full 21 months of no interest on balance transfers.
After this intro period ends, the APR will range between 18.24% and 28.99%, depending on your credit profile. Keep in mind, balance transfers must be completed within 4 months of opening your account. During that period, there is a 3% balance transfer fee (minimum $5), which later increases to 5% after the intro period ends.
This 21-month 0% APR is currently one of the longest promotional periods available—much longer than others that offer 12, 15, or 18 months.
In contrast, American Express (Amex) recently removed 0% APR intro periods on balance transfers from its cards, although many still offer interest-free promotions on new purchases.
An Amex spokesperson said:
“We periodically update our credit card offerings to make sure we’re being responsible in managing risk—for both our customers and the company. We’re continuing to provide the best possible support through products that help people during challenging times.”
Still in Debt? Some Balance Transfer Offers Remain
If you’re still carrying credit card debt, you might be relieved to know that some 0% APR balance transfer cards are still available. However, there are a few things to know about qualifying for one:
- Most balance transfer credit cards require you to have good to excellent credit (typically a credit score of 670 or higher).
- That said, having a good score doesn’t guarantee approval. Lenders also consider your employment status, income, monthly expenses, and housing costs.
- Even if you have fair credit (scores between 580 and 669), you might still be approved, depending on the lender’s criteria and your financial situation.
Best Balance Transfer Credit Cards Available Right Now
Here are some credit cards currently offering 0% intro APR on balance transfers:
- U.S. Bank Visa® Platinum Card
- 0% APR for 18 billing cycles on balance transfers
- After that, the APR is 18.74% – 29.74% (variable)
- Balance transfers must be made within 60 days of opening the account
- Citi Simplicity® Card
- 0% APR for the first 21 months on balance transfers
- After the intro period, APR ranges from 18.24% to 28.99% (variable)
- Balance transfers must be completed within the first 4 months
- 3% balance transfer fee (minimum $5) for the first four months; after that, the fee rises to 5%
- Citi Double Cash® Card
- 0% APR for the first 18 months on balance transfers
- Afterward, APR ranges between 18.24% and 28.24% (variable)
- Intro balance transfer fee is 3% (minimum $5) within the first four months; later increases to 5%
What to Do If You Don’t Qualify for a Balance Transfer Card
If you’re not eligible for a balance transfer card, there are still alternative ways to get out of debt:
1. Ask a Trusted Family Member or Friend for a Loan
You might be able to borrow money from someone close to you who is in a more stable financial situation. This could give you the chance to pay off your credit card debt interest-free. If you go this route, make sure to create a clear repayment plan so you protect the relationship and avoid misunderstandings.
2. Take Out a Personal Loan
A personal loan can be a smart alternative to a balance transfer card. These loans are often available to people with fair or average credit, and may offer lower fixed interest rates than what your credit card charges. With a personal loan, you borrow a specific amount of money and repay it over a set number of months or years.
Final Tip: Work on Improving Your Credit Score
If you don’t qualify for a balance transfer card right now, one of the best things you can do is focus on boosting your credit score. A higher score can help you qualify for better offers in the future. If you’re not sure where to start, check out these 6 easy ways to improve your credit score.
Note: The information about the Citi Simplicity® Card in this article was collected independently by CNBC Select and has not been reviewed or endorsed by the card issuer before publication.
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