What is a Credit Card Balance? — Top 0% Transfer Offers

What is a Credit Card Balance?

credit card advice

Ashley Dull
By: Ashley Dull
Posted: September 6, 2017
Opinions expressed here are ours alone, and are not provided, endorsed, or approved by any issuer. Site may be compensated through the issuer affiliate programs.

The word “balance” generally represents stability, whether referring to an equal distribution of weight or your mental well-being. This, of course, doesn’t have quite the same meaning in regards to your credit card.

When you get a new credit card, you’ll receive a monthly statement summarizing the previous month’s purchases, even if there were none. In bold letters, usually somewhere near the top of the statement, you’ll see the word BALANCE — this is what “credit card balance” means – the amount you owe to the credit card company for any transactions made using the card.

While some might not be able to avoid carrying a balance, most can avoid paying interest on a balance with the right card offers, and we’ll show you how.

Definition | Balance Transfers | 0% Intro Offers

Your Balance is the Amount You Owe on the Card

Your credit card balance can be positive, negative, or zero. A positive balance reflects any amount owed to the credit card company while a negative balance reflects a balance owed to you. This can happen when you make a payment that is larger than what you owe, for example, having a $1,000 balance and making a $1,200 payment. The remaining $200 will be applied to your next purchase(s) until you’ve been credited the full $200.

Your balance includes a few things, not just purchases made with the card. There are interest charges — determined by your creditworthiness at the time of applying — and fees, such as an annual fee or late payment fees, that can be added to the amount you owe.

Sample Credit Card Statement

This sample credit card statement is a summation of any previous balance plus new purchases, fees, and interest charges that equate to a new balance.

The good news is there are cards that don’t charge interest for an extended period when you transfer an existing balance and/or on new purchases; cards with no annual fees; and even cards that charge no interest or annual fees, like the ones we’ll cover below.

You Can Transfer Your Balance from One Card to Another

A balance transfer lets you transfer an existing balance from one card to another with a lower – oftentimes 0% — interest rate. This helps you pay off your balance much faster, as more of your payment is going toward the amount you owe rather than continually accruing interest.

The accruing interest is what makes it so difficult to pay off a credit card in the first place if you have a high balance with a high interest rate.

A balance transfer calculator can show you how much you could potentially save by getting a card with a 0% interest rate. These promotional APRs are generally good for 12 to 18 months, though some cards will periodically offer longer terms.

Below are the best balance transfer offers currently available, all with no annual fees and extended 0%-intro APR periods. Some even come with additional perks, like cash back and free FICO scores, but you must have good credit to qualify.

Discover it® - 18 Month Balance Transfer Offer Review

at Discover Card'ssecure website

0% BALANCE TRANSFER RATING

★★★★★
5.0

OVERALL RATING

4.9/5.0
  • INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
  • Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
  • Redeem your cash back for any amount, any time. Cash rewards never expire.
  • 100% U.S. based customer service.
  • Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • New! Receive FREE Social Security number alerts-Discover will monitor thousands of risky websites when you sign up.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 6 months
0% for 18 months
11.99% - 23.99% Variable
$0
Good/Excellent

0% BALANCE TRANSFER RATING

★★★★★
4.9

OVERALL RATING

5.0/5.0
  • Unlimited 1.5% cash back on every purchase — it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.99-24.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.99% - 24.74% Variable
$0
Excellent/Good
Discover it® - Cashback Match™ Review

at Discover Card'ssecure website

0% BALANCE TRANSFER RATING

★★★★★
4.9

OVERALL RATING

5.0/5.0
  • Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
  • INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
  • Redeem your cash back for any amount, any time. Cash rewards never expire.
  • Use your rewards instantly at Amazon.com checkout.
  • No annual fee.
  • Click "APPLY NOW" to see rates, rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
0% for 14 months
11.99% - 23.99% Variable
$0
Good/Excellent

+ See More Balance Transfer Offers

You can save a significant amount of money if you can score up to 18 months paying no interest, particularly if you carry a large balance. Just watch out for balance transfer fees, which are generally 3% to 5% of the amount being transferred.

Also, a balance transfer can be done with more than one card. For example, if you have two cards with balances that are being charged interest, you can request to have both balances transferred to the new card, so long as the credit limit you’re approved for accommodates it – just know that you’ll be charged a balance transfer fee per balance transferred, and you likely will not earn rewards for transferred balances.

Avoid Interest on New Purchases with a 0% Intro APR Offer

Even if you don’t have a current balance that would benefit from a 0% interest rate, everyone can benefit from a card that doesn’t charge interest on new balances.

Just as balance transfer cards allow for an extended period of interest-free payments, 0%-intro APR cards allow new cardholders to pay no interest on all qualifying purchases for an extended period. It’s essentially a free loan, which you certainly can’t get from any bank.

Below are our expert’s favorite 0%-intro APR offers currently available. The offers include cash back and free FICO scores, among other perks and protections only afforded through a credit card.

0% INTRO APR RATING

★★★★★
5.0

OVERALL RATING

4.7/5.0
  • $0 Introductory balance transfer fee for transfers made during the first 60 days of account opening
  • 0% Introductory APR for 15 months on purchases and balance transfers
  • Monthly FICO® Score and Credit Dashboard for free
  • No Penalty APR – Paying late won't raise your interest rate (APR). All other account pricing and terms apply
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.99%-24.74% Variable
$0
Excellent Credit
Wells Fargo Platinum Visa® Card Review

at Wells Fargo'ssecure website

0% INTRO APR RATING

★★★★★
5.0

OVERALL RATING

4.6/5.0
  • 0% Intro APR for 18 months on purchases and balance transfers, then a 16.15%-25.99% variable APR; balance transfer fees apply
  • Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum Visa® Card
  • Free access to your FICO® Credit Score with Wells Fargo Online®
  • Zero Liability protection for promptly reported unauthorized transactions
  • Convenient tools to help create a budget and manage your spending with My Money Map
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 18 months
0% for 18 months
16.15%-25.99% (Variable)
$0
Excellent/Good

0% INTRO APR RATING

★★★★★
4.9

OVERALL RATING

5.0/5.0
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
  • Enjoy new 5% categories each quarter like gas stations, restaurants and drugstores
  • Unlimited 1% cash back on all other purchases - it's automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.99-24.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • No minimum to redeem for cash back
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
0% for 15 months
15.99% - 24.74% Variable
$0
Excellent/Good

+ See More 0%-Intro APR Cards

Always Keep Your Balance Below 30% of Its Limit

One of the most important factors in calculating your credit score is your credit utilization ratio. This ratio represents how much debt you have (your balances) in relation to your credit limits. Most experts recommend keeping your balance below 30% of a card’s available limit, so, for example, if you have a credit card with a $3,000 limit, keeping your balance below $900 will help ensure your debt doesn’t negatively impact your credit score.

When you’re able to keep your credit card balances low, and even pay no interest on said balances, you can keep your credit cards and your financial well-being, well, balanced!