What is intro APR and how much will it save me? | finder.com
What is intro APR?

What is balance transfer intro APR?

A key balance transfer credit card benefit explained

What are balance transfer cards?

The struggle to get out of debt can feel insurmountable when there are balances in different places, especially with rates and payment styles that vary by lender. Luckily there are some solutions that help ease the journey to freedom from debt.

One such solution, a balance transfer card, allows the cardholder to take some or all of their debt and consolidate it into one place. What you can transfer is usually determined by your creditworthiness and the transferable amount allowed by any given lender.

When you’re looking to pay down debt a balance transfer card can also help if it offers a window of time with a reduced APR — also known as an introductory APR.

How does an intro APR work?

A significant hindrance to paying off debt can be high APRs that load on interest charges, especially when they get to the point where your balances never seem to move down even with timely payments.

With an intro APR you get a set window of time — usually between 6 and 15 months, and sometimes as long as 21 months — where your APR for the balance, or balances, that you transfer will be low or 0%. You’ll need to make the minimum payments or more on your balance each month, but your existing debt won’t accrue new interest during this temporary period.

Let’s use an example of a $5,000 credit balance. If you qualify for a 0% interest introductory APR for 12 months, here’s how much you’ll save:

  • First calculate the balance transfer fee. With a $5,000 balance and a 3% balance transfer fee (no cap) your fee is 5,000 x .03 = $150.
  • Next, calculate the monthly payments. With a $5,150 balance (your balance transfer + the fee), you’ll need to pay $430 per month in order to pay off your balance within the intro period.
  • Calculate your savings. If the APR on your previous balance was 15%, you would pay $452 per month to pay off your debt in 12 months — that is, if you don’t make any new purchases. This makes for a savings of $264 in interest over the same 12-month period.

Is this intro APR a good deal?

Here are a few key points to look for when choosing a balance transfer card with an intro APR:

  • Length of introductory period. Introductory windows will vary based on the lender and your creditworthiness. It’s important to shop around and find one that will best serve your needs. Perhaps a shorter window is all you need to pay off a smaller balance, but the same period may not be as beneficial if you have a larger balance that you need to pay off in smaller amounts.
  • Intro APR. You can expect this APR to be different from lender to lender. Some cards offer as low as 0%, but they can go up to 3–4% based on your creditworthiness.
  • Full APR. After the introductory period is over there will be a higher APR applied to any remaining balance. If you know you’ll still have a large balance remaining it may be beneficial to seek a card with a lower full APR.
  • Balance transfer fees. When transferring a balance there may be a fee associated that is charged by the lender you are moving to. These fees can range from 2–5% of the amount being transferred.
  • Rewards program. To earn rewards for any additional purchases on your new card you’ll want to check out the various reward programs offered by different lenders.

Compare balance transfer credit cards

Rates last updated April 23rd, 2018
Name Product Product Description Intro APR for Balance Transfer APR for Purchases ( Purchase Rate ) Annual fee Minimum Credit Score
Blue Cash Everyday® Card from American Express
Earn $150 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive the $150 back in the form of a statement credit.
0% Intro APR for 15 months (with whichever is greater, $5 or 3% balance transfer fee)
14.49% to 25.49% variable
$0
Fair (660-699)
The Chase Freedom® Unlimited™ credit card
Earn unlimited 1.5% cash back on every purchase – it's automatic. No minimum to redeem for cash back.
0% Intro APR for 15 billing cycles (with whichever is greater, $5 or 5% balance transfer fee)
16.24% to 24.99% variable
$0
Fair (660-699)
Chase Slate® credit card
Jumpstart your financial fitness! 60 day introductory balance transfer offer, save on interest, and get your free monthly credit score.
0% Intro APR for 15 billing cycles (with $0 for transfers in first 60 days. Then $5 or 5% balance transfer fee)
16.24% to 24.99% variable
$0
Fair (660-699)
BankAmericard Cash Rewards™ Credit Card
Earn more cash back for the things you buy most.
0% Intro APR for 12 statement closing dates (with whichever is greater, $10 or 3% balance transfer fee)
14.49% to 24.49% variable
$0
Good (700-739)
HSBC Cash Rewards Mastercard®
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees
0% Intro APR for first 15 months from account opening (with whichever is greater: $10 or 4% balance transfer fee)
14.49%, 18.49% or 24.49% variable
$0
Fair (660-699)
NASA Federal Platinum Advantage Rewards Credit Card
NASA Federal Platinum Advantage Rewards Credit Card
Enjoy perks and save money while gaining points that never expire with every purchase.
9.9% Intro APR for 90-days
11.40% to 17.99% variable
$0
Fair (660-699)
DCU Visa® Platinum Secured Credit Card
A great way to establish or improve your credit history.
13.00% variable
$0
Poor (Below 660)
primor® Secured Visa Gold Card
Fast, easy application process. No processing or application fees!
9.99% variable
$49
Poor (Below 660)
Barclaycard Ring™ Mastercard®
A low, variable APR on purchases, balance transfers and cash advances.
10.49% variable
$0
Good (700-739)
Discover it® Secured Credit Card
2% Cashback at restaurants or gas stations on up to $1,000 in combined purchases each quarter. Plus 1% cash back on all other credit card purchases.
10.99% Intro APR for 6 months (with the amount of each transfer, 3% balance transfer fee)
24.49% variable
$0
Poor (Below 660)
Fifth Third Secured Card
Build, or rebuild, your credit with each purchase.
25.49% variable
$24
Poor (Below 660)

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What to look out for

An intro APR is only effective if you make full use of it and know any caveats that may apply.

  • Once your intro APR window closes you revert to the lender’s full APR for your creditworthiness and card-type. Any balance that you have not yet paid off begins earning interest just as it would with any other credit card. Some lenders also treat balance transfers as cash advances, which may have a higher APR.
  • Missing payments can cause your intro APR to end early. There is a chance that the lender will cancel the intro APR when minimum payments are not made, and your balance will again start earning interest at the full APR.
  • Intro APR may not cover new purchases. It is possible that the card you transfer your balance to will not apply the intro APR to new purchases or cash advances. Make sure to fully read and understand the terms of the offer before selecting a card.
  • Fees are not part of the balance. If there is a balance transfer fee associated with the card, the fee may not fall under the terms of the intro APR.

How do I get a balance transfer card with an Intro APR?

Once you’ve figured out the card that’s right for you and what you want to transfer, here’s what you’ll want to do next:

  1. Gather account information for all debts that you are going to transfer.
  2. Determine the amount that you want to transfer.
  3. Obtain any documents needed to verify your identity.
  4. Click on the link for the card of your choosing.
  5. Click on Apply.
  6. Enter in the requested information.
  7. Wait. After you submit your application it may take up to 10 business days for review and approval.

The complete guide to balance transfer credit cards
What exactly is a balance transfer?
How to apply for and complete a balance transfer

Rhys Subitch

Rhys Subitch is a content creator and editor for finder.com. They specialize in updating information on various pages to keep everything accurate for the readers, and enjoy the time they get to spend researching various topics because of it. Rhys lives with their cat and partner in Seattle. When not working they enjoy working on sewing and other craft projects.

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