Are you struggling under the weight of credit card debt? As unsecured debt, credit cards can have much higher interest rates than loans secured by your home or your car. And unlike a home mortgage or a student loan, credit card interest charges are never tax deductible.
When you have credit card debt, you continue to incur interest charges each day on your balance, and it can consume a substantial proportion of your monthly payments. Thankfully, there are some credit cards that can actually help you to get out of debt sooner than staying with your current credit card.
Many credit cards offer interest-free promotional financing on balance transfers. When you open an account with one of these cards, you can transfer your existing balance to your new card and enjoy 0% APR financing for more than a year. However, nearly all credit cards with interest-free promotional financing on balance transfers will charge a fee of 3% or 5% of the balance you want to carry over to the new card.
During this promotional financing period, 100% of each payment you make goes directly towards paying down the principal. As a result, you can pay off your credit card debt sooner without making larger payments each month. Better yet, you can use the end of the promotional financing offer as a goal for paying off your entire debt. When you have an added incentive to pay off your debt before interest begins to accrue, you can work even harder towards avoiding all interest charges.
Here are some of the best credit cards that can help you to get out of debt faster.
1. Chase Slate
This is the only credit card from a major bank that offers 0% APR balance transfers with no balance transfer fee or annual fee. New applicants receive 15 months of interest-free financing on both new purchases and balance transfers, with no fee for transfers completed within 60 days of account opening. (Variable 15.74% to 24.49%, after that.)
In addition to its outstanding balance transfer offer, this card also features Chase’s Blueprint program at no additional cost. Blueprint allows you to set a date for paying off your debt and it provides you with the amount you have to pay each month to reach that goal. Or, you can input the amount you are able to pay each month, and it will tell you how much time it will take for you to pay off your debt. Blueprint also allows you to avoid interest on some charges by paying them in full while carrying a balance on others. There is no annual fee for this card, and it has no penalty interest rate.
2. Citi Simplicity
Citi’s Simplicity card offers the longest promotional financing offer available from a major bank. It features 21 months of interest-free financing on both new purchases and balance transfers, with a 3% balance transfer fee. (Variable 14.24% to 24.24% after.) Simplicity also has no late fees and no penalty interest rate. Other benefits include extended warranty coverage and access to Citi’s Price Rewind service. There is no annual fee for this card. (Full Disclosure: Citibank advertises on Credit.com, but that results in no preferential editorial treatment.)
3. BankAmericard From Bank of America
This card offers 18 months of interest-free financing on balance transfers made within 60 days of account opening, with a 3% balance transfer fee. And since it’s issued by one of the nation’s largest banks, those who have an existing checking or savings account with Bank of America can have the convenience of making transfers between accounts rather than payments between institutions. This card is also compatible with mobile payment systems including Apple Pay, Android Pay and Samsung Pay. There’s no annual fee for this card.
This card allows you to pay down your balance faster, while also offering travel rewards and benefits. New cardholders receive 12 months of 0% APR financing on balance transfers completed within 45 days of account opening. (Variable 12.74%, 20.74% or 25.74%, after that.) You also earn 6x points for JetBlue purchases, 2x points at restaurants and grocery stores and 1x on all other purchases. Travel benefits include a 50% savings on in-flight purchases, 10% of your redeemed points back and a free checked bag on JetBlue flights. There’s a $99 annual fee for this card, and no foreign transaction fees.
A Note on Balance Transfers
Once you transfer your balances to a 0% APR card, it can be tempting to spend again on the clean, debt-free card, but it’s important to try to keep your balances as low as possible on both cards. Card balances and a heavy amount of debt influence your credit scores in a negative way, and a low credit score can limit your options in the future. Mortgage rates, car loan rates and even cellphone down payments are influenced by your credit score. If you’re curious to see how your debts are influencing your credit scores, you can see two of them for free, updated every 14 days on Credit.com.
At publishing time, the Chase Slate, Citi Simplicity and the JetBlue Plus card from Barclaycard are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.