6 Best Credit Cards to Get Out of Debt, written by Elizabeth Aldrich
Struggling under a mountain of debt is hard enough, but when the credit card companies add in high interest rates, it can feel like you’re sliding down the mountain, not climbing up it.
Chipping away at debt can take years. The best way to throw out the ice pick and take a bulldozer to Debt Mountain is to find a way to lower your interest payments so you can focus on paying off the actual debt.
But what if you could lower your interest payments all the way to zero?
Using a credit card to pay off credit card debt may sound ironic, but with great balance transfer offers at nearly every bank, transferring your debt over to one of these cards with a lower (or 0%) APR is the best way to tackle it. Here are the top five credit cards for getting out of debt.
- Chase Slate: Best for No Balance Transfer Fees
The Chase Slate is consistently at the top of balance transfer card offers and has been for a couple years. This is largely because they’re one of few cards to allow balance transfers with a 0% balance transfer fee (if you complete the transfer within the first 60 days).
On top of that, they offer the longest introductory period for cards with a 0% balance transfer fee at 15 months. The Chase Slate is also one of the easier cards to get, and all Chase cards also offer free debt management through their Blueprint program.
Balance Transfer Fee: 0%
Promotional APR: 0% on balance transfers
Introductory Period: 15 months
Credit Required: Average
Other Perks: Access to debt management program Blueprint, free FICO score
- Citi Simplicity: Best for Longest Introductory Period
If you know you’re going to need more than 15 months to pay off your debt, you’ll want to go with a card that has a very long introductory period, although it means you’ll have to pay a balance transfer fee.
The Citi Simplicity currently has the longest introductory period of any major card at 21 months.
Balance Transfer Fee: 3%
Promotional APR: 0% on balance transfers
Introductory Period: 21 months
Credit Required: Good
Other Perks: No late fees, free FICO score
- BankAmericard: Best Alternative to Citi Simplicity for Longest Introductory Period
There are a handful of cards with 18 month introductory periods, which are a good alternative if you can’t get approved for the Citi Simplicity, or if you are transferring debt from another Citi card. Remember, you can’t do a balance transfer between two cards from the same issuer.
Balance Transfer Fee: 3%
Promotional APR: 0% on balance transfers
Introductory Period: 18 months
Credit Required: Average
Other Perks: Free FICO score, easier to get approved for
- Citi Double Cash: Best for Rewards
Most recommended balance transfer cards don’t offer any rewards, because they’re meant to be used for debt repayment and not new purchases.
The Citi Double Cash is one of the few that offers good rewards (in fact, one of the best rewards cards on the market) and still has a reasonably good balance transfer offer. You get 1% back on purchases and 1% back on repayments, so essentially, you get 2% cash back on all purchases as long as you’re paying your card off. With the cash back split between purchases and payments, the card also gives you an incentive to always pay off your balance.
Balance Transfer Fee: 3%
Promotional APR: 0% on balance transfers
Introductory Period: 18 months
Credit Required: Good
Other Perks: 2% cash back on all purchases, no limits to reward earnings, first late payment waived, flexible billing allows you to set your payment due date
- Chase Slate: Best for People With Less-Than-Perfect Credit
It can be hard to get approved for balance transfer offers if you have poor credit. The Chase Slate is not only one of the best balance transfer cards, but it’s also one of the easiest to get.
If your credit is too low to be approved for any balance transfer cards, your best option is to get a card that’s good for building credit and apply for a balance transfer card once your score has gone up a little.
Balance Transfer Fee: 0%
Promotional APR: 0% on balance transfers
Introductory Period: 15 months
Credit Required: Average
Other Perks: Access to debt management program Blueprint, free FICO score
- NASA Federal Credit Union Platinum Cash Rewards: Best for People With a Lot of Debt
This card actually doesn’t offer a 0% promotional APR at all. However, it does offer a 7.9% promotional APR on balance transfers, and that APR lasts for the entire life of the balances transferred. There is also no balance transfer fee. If you’re planning on taking years to pay off your debt, this option might actually be ideal.
Let’s say you have $10,000 in debt, and you want to make monthly payments of $200. It will take you 50 months (more than 4 years) to pay off your debt with a 0% APR the entire time. The maximum introductory period you can get is only 21 months. You can’t guarantee you’ll be approved for a second balance transfer card after the introductory period on the first runs out.
If you can’t get another balance transfer card, your APR could skyrocket to upwards of 25%. For some, it is wise to consider locking in a very low promotional APR indefinitely rather than a 0% APR for a short period of time.
And no, you don’t have to work for NASA to become a member of this credit union! You can simply become a free member of one of their NASA-related non-profit organizations.
Balance Transfer Fee: 0%
Promotional APR: 7.9% on balance transfers
Introductory Period: Indefinite
Credit Required: Good
Other Perks: High credit limits available, low regular APRs, credit union membership is easy to obtain, cash back rewards program
There are a few important tips to keep in mind. Once you transfer your balance, always pay your monthly payments on time. Don’t try to transfer debt between two cards of the same bank because most banks won’t allow this. Finally, never use the card to spend more money. It should be used solely to pay off your balance.
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