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Yahoo
13 hours ago
- Business
- Yahoo
The best balance transfer credit cards for 2025: Don't pay any interest until 2026
Why we like it: The Chase Freedom Unlimited is another cash-back credit card with a competitive introductory 0% APR period on both balance transfers and new purchases. You'll have 15 months before interest kicks in, with an ongoing variable APR of 20.49%–29.24% when the intro period ends. There's a 3% fee ($5 minimum) for balances you transfer within 60 days of account opening; after that, the fee goes up to 5% ($5 minimum). Like the other cash-back cards on this list, you can still get plenty of value from the Chase Freedom Unlimited after the introductory period ends. You'll earn 5% cash back on Chase Travel℠ purchases, 3% back on dining and at drugstores, and 1.5% back on everything else. This card can make a great choice if you already have a Chase card, too. You can use the rewards you earn to book travel through Chase Travel and even combine them with other Chase cards that may get added multipliers on travel redemptions (like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®).Given the Chase Freedom Unlimited's high ongoing APR though, it's important to make sure you don't fall into old habits of racking up revolving balances. One of this card's best features is its first-year welcome offer, for example. But if you're not able to pay down your debt balance quickly enough to take advantage of it, or you're worried it'll encourage overspending that could lead you back into debt, you may want to consider another we like it: The Blue Cash Everyday from American Express is one of our favorite cash-back credit cards today. It can also be a helpful tool for paying down existing credit card debt. The card's introductory 0% APR on balance transfers lasts for 15 months after account opening, with a variable APR of 20.24% to 29.24% thereafter (see rates & fees). The balance transfer fee is 3% ($5 minimum) of the amount you transfer. But the Blue Cash Everyday shines for its long-term savings once you've paid off your existing debt. You'll earn 3% cash back at U.S. supermarkets, U.S. gas stations, and on U.S. online retail purchases, each up to $6,000 spent per year, then 1% back (and 1% cash back on everything else). Plus, annual benefits can help you save even if you don't want to charge many new purchases to your card during the promotional period. You can get $7 in monthly statement credits (up to $84 annually; with enrollment) when you spend at least $9.99 on an auto-renewing Disney Bundle we like it: The Citi Double Cash Card is our overall pick for anyone looking to pay down debt with a balance transfer. With a long 0% APR on balance transfers for the first 18 months (18.24%-28.24% variable APR after that), it's an excellent option for debt payoff. You'll pay a 3% balance transfer fee ($5 minimum) for each balance you transfer within the first four months of account opening, which increases to 5% ($5 minimum) after four months. Throughout the extended intro period, you can make major progress on existing balances or even commit to paying the amount you transfer in full. There's plenty to like about this card after you pay down your balance, too. You'll earn up to 2% on every purchase you make with the Citi Double Cash: 1% when you make the purchase and 1% when you pay it off. That rewards structure may even add some incentive to avoid carrying a balance once you've paid down your debt, since you won't earn the total cash rewards until you pay in full. Unlike other balance transfer credit cards, the Citi Double Cash Card does not offer an introductory 0% APR on new purchases — the only detail that kept it from a perfect score in our methodology. However, if you're planning to use this card primarily to pay down debt (and then for its cash-back benefits after the intro period), we don't think that holds this card back from being a top choice among balance transfer offers we like it: The Citi Rewards+ Card is another rewards credit card with a solid 15-month introductory 0% APR period, which applies to both new purchases and balance transfers. After the intro period ends, you'll pay a 17.74%-27.74% variable APR. That's still very high for any balance you carry, but it is one of the lowest you'll find among balance transfer credit cards today. After the intro period ends, you can earn Citi ThankYou® Points on your purchases: 5x points on hotels, rental cars, and attractions booked through Citi Travel through the end of 2025; 2x points at supermarkets and gas stations (up to the first $6,000 spent per year, then 1x); and 1x on all other purchases. For each purchase you make, your rewards are rounded up to the nearest 10 — so you could get 30 points from a $24 purchase — and for each redemption you make, you'll get 10% points back (up to the first 100,000 points you redeem per year). Each of these can help you maximize points to use on travel, statement credits, gift cards, and more. The Citi Rewards+ Card isn't the only rewards card from Citi with a competitive intro period and a lower ongoing APR, but it took the edge over the potentially higher-earning Citi Custom Cash® Card for its slightly lower balance transfer fee. When you transfer a balance to the Citi Rewards+ within the first four months of account opening, you'll pay a 3% fee ($5 minimum). After that, the fee goes up to 5% of your transfer ($5 minimum), which is the same as the Citi Custom Cash Card's we like it: Discover it Cash Back similarly offers great ongoing rewards alongside a useful 0% APR. It has an introductory 0% APR period for 15 months after account opening for new purchases and balance transfers (as long as you make your transfer within a given time period). The ongoing variable APR after the intro period is 18.24%-27.24%, and there's a standard balance transfer fee that's in line with other balance transfer credit cards. The Discover it Cash Back also has great long-term value with revolving 5% cash back Discover rewards categories. You'll earn 5% back on the first $1,500 spent across the revolving categories — which may include grocery stores, restaurants, gas stations, streaming services, and more — each quarter when you activate and 1% on everything else. Like some other cards on our list, one of the Discover it Cash Back card's top features is its welcome offer: a Cashback Match on all the rewards you earn in your first year. Of course, maximizing this offer depends on earning rewards on your purchases throughout the year. If you want to take advantage of the bonus offer (and the card's revolving bonus rewards categories), make sure you can balance your spending with your debt payoff plan so you don't end up back where you started when the balance transfer intro period you're looking for the absolute longest 0% APR promotional period on balance transfers, here are a few more of our top-rated cards with long intro periods. Why we like it: BankAmericard has a solid combination of long introductory 0% APR and relatively low ongoing APR, which can be great for people solely focused on debt payoff. The introductory period for balance transfers is 18 billing cycles and applies to balances you transfer within 60 days of account opening. The same 0% APR intro period applies for new purchases. After that, you'll pay a variable 15.24%-25.24% APR on any remaining balance. While that can easily add up over time, it's significantly less than you'll find from many credit cards today. There's an introductory balance transfer fee of 3% for the first 60 days, then it goes up to 4%. There's also no penalty APR; while you should always make your credit card payment on time (especially while carrying a balance), paying late or having a payment returned won't automatically increase your BankAmericard APR. Why we like it: The Wells Fargo Reflect® Card is an excellent choice for balance transfers primarily because of its extraordinarily long 0% APR offer of 21 months. This feature allows cardholders to transfer existing balances and enjoy a prolonged period without incurring interest, providing ample time for debt management and reduction. The 5% balance transfer fee needs to be considered, but for many, the benefit of the extended interest-free period outweighs this cost. This card is particularly advantageous for those who anticipate needing more time to pay off their balances and want to avoid the rapid accumulation of interest we like it: The U.S. Bank Visa Platinum Card also has one of today's longest intro periods, with an introductory 0% APR for 21 billing cycles. That intro offer applies to new purchases and to balance transfers made within 60 days of account opening. After that, your remaining balances will earn a variable 17.74%-28.74% APR. In exchange for the long intro period, you'll again earn no rewards and pay a slightly higher balance transfer fee than other cards on our list: 5% of your transferred balance or $5, whichever is greater. Why we like it: The primary appeal of the Citi Simplicity Card for balance transfers lies in its extended 0% APR offer, lasting an impressive 21 months. This length of time is one of the longest available, providing cardholders with a substantial period to manage and pay off transferred balances without accruing interest. The 0% APR offer for 12 months on purchases also adds flexibility, allowing cardholders to make new purchases without immediate interest concerns. While the card does not offer cash-back rewards or a welcome bonus, its strength is its simplicity and the potential for significant interest savings. The balance transfer fee of $5 or 3%, whichever is greater, is a standard rate and should be considered when evaluating the overall benefit of transferring balances to this card. The Citi Simplicity Card is particularly well-suited for those prioritizing a lengthy interest-free period for their balance transfer needs, offering a straightforward and cost-effective approach to managing debt. Not only is credit card interest expensive, but it's as high as it's ever been. Today's average credit card interest rate is over 21% — higher than at any other point since the Federal Reserve began tracking rates in the 1990s. For those who carry a balance on their card, the average is more than 23%. Credit cards with 0% APR on balance transfers can offer significant savings compared to standard double-digit interest rates. Maximize your balance transfer savings by paying your balance in full before the intro period ends. If you can't pay the balance within the 0% APR period, you can still shave months and potentially thousands of dollars from your debt payoff. Your total savings will depend on a few details, including the length of your intro period and how much you can pay each month. Let's say you have a credit card balance of $5,500 today — just below the average balance for U.S. households with credit card debt, according to the Federal Reserve Bank of St. Louis. That balance is all on a credit card earning 21% APR. Here's what your journey to pay down debt could look like over a few different scenarios: Minimum payments: This is by far the most costly option. Making only minimum payments, you would add nearly $9,000 in interest over more than two decades before paying your balance off in full. Total paid: $14,499 Fixed monthly payment: You can minimize costs by paying more than your monthly minimum, even if you cannot pay your balance in full. Maybe you can afford to contribute a fixed payment of $200 each month toward your debt. In this case, you'll pay your balance in full after three years, but still add more than $2,000 to your total balance. Total paid: $7,566 Now, let's see how a balance transfer credit card could make a difference in your $5,500 debt. This card comes with an 18-month 0% introductory APR and a 3% balance transfer fee (more on that below). After the intro period, you'll take on the same 21% APR. Pay in full: If you can put at least $314 toward your credit card bill each month, you could wipe out your balance in full by the end of the intro period without paying any additional interest. The only payment added to your principal is the 3% fee when you transfer, equal to $165. Total paid: $5,665 Fixed monthly payment: If the amount you need to pay in full is out of your budget, you can still save with a balance transfer offer. Maybe you can afford the same $200 monthly payment as before the transfer. Over the introductory period, you would pay down $3,600 of your principal balance, lowering your debt to $2,065. Once the APR starts to accrue, you could cover the remainder in one year with only $235 in added interest. Transferring your balance would allow you to pay your balance in full over 30 months and with about $400 in added interest and fees. Total paid: $5,900 There are many factors to consider for a balance transfer credit card, most notably whether this is the right tool to help with your debt repayment journey. Make sure you're considering balance transfer credit cards that match your financial goals. Here are a few details to look for: Introductory APR: Credit cards offer introductory APRs for new cardholders, either on new purchases or balance transfers (or both). The introductory rate for many balance transfer cards is 0% over a given intro period, which can help you pay down your existing balance without interest. Regular APR: APR stands for annual percentage rate, the percentage you get charged by the credit lender each payment period you carry a balance. This will likely be different than your intro rate. Credit cards typically have variable APRs, which means your rate goes up and down over time. Transfer period: On some cards, balance transfers are only eligible for 0% APR offers when you transfer your balance within a given time frame: within 60 days of account opening or 120 days of account opening, for example. While it makes sense to transfer your debt as soon as possible to take advantage of the full intro period, you'll also want to keep any time limits like this in mind, so you don't miss out on the offer. Issuer: You generally won't be able to transfer a balance from one card account to another card account with the same bank. Look for balance transfer offers from different credit card issuers than the card on which you have an existing debt balance. Annual fees: Your issuing bank might charge an annual fee for your card, though annual fees aren't common among top balance transfer cards. If you do choose a card with an annual fee, you should make sure you're getting enough value to offset the yearly cost. Balance transfer fees: If you want to transfer debt to an existing balance from one credit card to another, the new card issuer can charge you a fee. This is usually a percentage of your transfer amount ranging from 3% to 5% with at least a $5 minimum. Your credit score: Balance transfer credit cards generally require a good credit score. A credit score is a number that represents your credit health, and is based on the information in your credit report. You can request a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) These reports contain your credit history, like how many credit card accounts you've had. Credit scores range from 300-850. Above around 700 is considered good, and above 800 is considered excellent — the higher your score, the more likely you are to qualify for great loan terms and rewarding credit cards in the future.A balance transfer credit card can save you money, but you should still prepare for the potential costs you'll incur. Balance transfer cards don't typically carry an annual fee. However, there is often a fee for transferring your balance. Balance transfer fees can range from 3%-5% of your overall balance, usually with a minimum of around $5 or $10. Say you want to transfer a $3,000 balance to a card with a 0% intro APR and a 3% balance transfer fee. The balance transfer would cost you $90 in total. The larger your balance, the more you'll pay for the balance transfer. Still, these fees are likely only a small fraction of the interest you would otherwise pay. Some balance transfer credit cards waive this fee. If you have a very high balance that could lead to a costly fee — or you want to avoid any added cost altogether — you may want to focus on balance transfer cards with no fee. Balance transfers have pros and cons. While benefits include the intro APR offer for debt payoff, cons include balance transfer fees and potentially few. 0% introductory APR: With no-interest balance transfer credit cards, any payments you make throughout the intro period will go directly toward your principal balance. Instead of interest making it more challenging to pay off your debt, you can use this tool to eliminate the underlying balance. No annual fee: The best balance transfer cards available today have no annual fee, so you don't have to worry about any additional cost of owning the card. Debt consolidation: If you have balances spread across multiple credit cards, you may be able to consolidate them onto a single balance transfer card. Not only can you benefit from the period of interest-free payments, but you'll also minimize the number of individual monthly payments you need to remember. Just make sure the total transferred balance is less than your card's credit limit. Risk of not paying your balance off in full: You may not be able to maximize your balance transfer if you cannot prioritize your monthly payments over the intro period. These cards work best if you can commit to paying down a significant portion of your balance over the 0% APR offer. Otherwise, you'll be left with a growing balance once again when your regular interest rate begins. Balance transfer fees: The fees issuers charge to make your transfer can add to your overall balance. But for most cardholders, a 3% or 5% fee will still be far less than the amount you would otherwise accrue in interest charges. Credit limits: Make sure you know the credit limit of your balance transfer credit card before you attempt to make your transfer. If your existing debt is more than the limit, you won't be able to transfer the entire balance. Take advantage of your new card. Not only is a balance transfer credit card a great way to pay down debt, but it can also set you up for a better financial future. Here are three things you should do when you open up a new card: The introductory period on your balance transfer card only lasts so long. Take full advantage by transferring your balance as soon as possible after approval. If your new credit card offers an 18-month 0% APR intro period but you wait two months to make your transfer, paying down your debt in that shorter time frame will be more difficult. Some balance transfer cards even require you to transfer your balance within a specific timeframe. For example, your card agreement may specify that the 0% APR offer applies to transfers made within the first 30 days of account opening. Alternatively, you could take on a more significant balance transfer fee the longer you wait. For example, there may only be a 3% fee for balances transferred within 60 days of account opening, but a 5% fee for balances transferred after that time. Always read the fine print of an introductory balance transfer offer before opening your account so you can avoid any surprises that may set you back. Throughout the intro period, prioritize paying down your debt without making new purchases that increase your balance. If you're adding to your balance throughout the 0% APR period, you'll only leave yourself with more to pay off. Instead, focus on buying only what you can afford to pay in full. Whether you make purchases with another credit card, use your debit card, or pay with cash, ensure you have enough money in the bank to cover your spending. This may also help you become more aware of any spending habits that led to taking on the debt in the first place, so you can avoid ending up in the same place again. If debt payoff is your priority, long-term rewards or benefits may not be the biggest concern when choosing your balance transfer card, but they are worth considering. Balance transfer credit cards with the longest introductory 0% APR periods (up to 21 months) typically offer few ongoing benefits. They are designed for cardholders looking to pay off as much debt as possible over a more extended period. On the other hand, credit cards with balance transfer offers and ongoing rewards or other benefits tend to have slightly shorter intro periods of around 12 to 15 months. Even after you pay down your debt, these cards can offer long-term value on your everyday purchases. Just make sure you plan to avoid overspending and taking on debt you can decide if opening a new account is right for you. A balance transfer credit card can help if you're in debt or have high-interest debt. But you should always consider all the options that could help you pay down debt balances and know the potential risks involved. Think about these things before you make your decision: A balance transfer isn't your only option for debt payoff. Consolidating debt with a personal loan may be a better option for some people. If your debt far exceeds the credit limit on a new balance transfer card or you need more time than 0% APR intro periods offer today, opting for a personal loan with a fixed APR lower than your current credit card could be a good solution. Not only do you need good credit to qualify for a balance transfer card, but a balance transfer itself can also potentially affect your credit. For one, when you open any new credit card (including a balance transfer card), the required hard inquiry on your credit could lead to a small, temporary credit score drop. To keep multiple applications from sinking your score, only apply for cards you're confident you'll qualify for or get prequalified before applying. Another potential credit impact involves your credit limit. If you transfer a debt balance that makes up nearly your entire credit line, you could increase your credit utilization ratio — the amount of credit you're using compared to the amount you have available. This is one of the most influential factors in your credit score; the lower it is, the better. However, if you can keep up with your payments and begin to quickly bring down your balance over the intro period, you can mitigate the negative effect and balance the ratio.A good plan is the most important thing you can have before opening a balance transfer credit card. Using your card details (length of intro period, balance transfer fee, etc.), determine precisely how much you need to pay each month to eliminate your balance in full before the 0% APR period ends. If necessary, look at your budget and spending before you apply to find areas where you can reduce spending to dedicate more toward your monthly payments. If you can't pay off your balance completely, think about what next steps you'll take once interest kicks in to keep the remainder from growing out of your control. And don't forget to rethink your spending over the long term to ensure you don't wind up with another debt balance in the future. Practicing good credit habits and spending only what you can afford is the best way to take advantage of the rewards and benefits of credit cards without paying the price tag of high interest rates. Balance transfer cards can be a savvy financial move if you're looking to tackle high-interest debt. By transferring your existing debt to a card with a 0% introductory APR, you stop accruing interest and only make payments toward the principal balance. However, if you can't clear the balance before the introductory period ends, you'll face the card's standard APR on the remainder. You should be confident you can make a significant difference in your balance before this ongoing interest kicks in to make the balance transfer worth it. It's also important to note that most balance transfer credit cards come with a transfer fee — usually 3%-5% of the amount transferred — which adds to your costs. Navigating a balance transfer can be tricky; you need a solid strategy to maximize it. First, find a balance transfer card that offers a long 0% introductory APR period — ideally, 15 to 21 months. The longer this no-interest period lasts, the more time you have to pay down your balance without worrying about interest charges. Also pay attention to the balance transfer fee; most balance transfer cards will have at least a 3% fee that you should be prepared to add to your total amount due. Once you've opened your new card, transfer the balances from your highest-interest credit cards first to maximize savings over the 0% APR period. Double-check your balance transfer limit before you start so you don't attempt to transfer more than the card allows. Prioritize paying more than the minimum payment each month. To truly take advantage of the 0% APR, calculate how much you must pay monthly to clear the debt before the introductory period ends. If you just stick to the minimum, you likely won't reduce the balance by much. Never make a late payment on your balance transfer card. One missed payment could mean losing your 0% APR and being hit with a much higher penalty APR, along with late fees. Set up autopay or reminders to ensure you never miss a due date. Avoid using your new card for new purchases while you pay down the balance. Keep your spending in check and focus solely on paying off the debt you transferred. Finally, don't get caught off guard when the 0% APR period expires. If you think you won't be able to pay off the full balance by then, start planning ahead for how you'll continue paying down your debt. A balance transfer can temporarily lower your credit score because it triggers a hard inquiry by the card issuer on your credit report. This is true for all new credit applications, not just balance transfer cards. A balance transfer can also affect your credit utilization ratio, potentially lowering your score if the balance transferred to your new card represents a large percentage of its limit. Credit utilization, which measures how much credit you're using compared to your total available credit, is a major factor in calculating your credit score. your credit score. It's best to keep this ratio under 30%. The good news is that if you use a balance transfer card wisely — by paying down your balance and avoiding more debt — your credit score should improve over time. Like most credit cards, the higher your score is, the better your chances of getting the best available balance transfer offers with long 0% APR periods and other benefits. In general, you're most likely to qualify for a balance transfer card with a good-to-excellent credit score. According to FICO, that means a score of at least 670 and up to the maximum 850 credit score. With a solid credit score (especially one closer to the 'excellent' end of the range around 750 or higher), you can usually score the best balance transfer terms, a relatively lower interest rate after the intro period, and additional perks like cash-back rewards and a sign-up bonus. To create our list of the best balance transfer credit cards, we prioritized a holistic look at what these cards offer cardholders, even after the intro period ends. First and foremost, though, we analyzed the details of each card's balance transfer offer. This includes the length of the intro period for balance transfers, the balance transfer fee, and whether it also has an intro period for new purchases. We also rated each card on other features that may apply throughout the intro period and beyond: the ongoing variable APR, any rewards on spending, annual fee cost, and credit score access. Finally, we reviewed customer service, security, and accessibility features that apply to any of our card rankings. These include mobile app reviews, fraud monitoring, number of ways to contact the issuer, and more. Using this system, we evaluated more than two dozen credit cards from major issuers with balance transfer offers available today. The cards we looked at are widely available for American consumers (with the credit to qualify), no matter where you're located or what institution you bank with. Of course, not everyone looking for a balance transfer credit card is interested in long-term rewards and benefits. For some, finding the longest intro period available to begin paying down debt is more important than any ongoing card features. While the cards with today's longest intro periods (typically 18 to 21 months) generally scored lower in our overall ranking system because of their lack of ongoing value, we did want to include them on our list. In the 'more cards to consider' section, we include these cards, which offer the longest introductory periods and next-best overall scores after those cards that made the primary bring down your balance over the intro period quickly This article was edited by Rebecca McCracken Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
Forbes
30-04-2025
- Business
- Forbes
Maximize Your Wallet: Best Cards To Use With Chase Sapphire Preferred
Batman and Robin, peanut butter and jelly—some things are just better in pairs, including the best credit card combinations. The Chase Sapphire Preferred® Card is one that, while powerful on its own, can give you next-level value when coupled with the right partner. There's a long list of attributes that make the Sapphire Preferred such a stellar product and one of the best rewards cards on the market, so let's get into it: For all the Sapphire Preferred's strengths, there's still room for improvement. For example: This is where pairing the Sapphire Preferred with another credit card can take your points earning to the next level. The Chase Freedom Unlimited® is a no annual fee card with simple yet versatile rewards earning: 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. It's a solid card on its own, but when paired with the Sapphire Preferred, it becomes a powerful tool for maximizing every dollar you spend. What makes this pairing so effective is how well the two cards complement each other. The Sapphire Preferred shines in categories like travel and dining, while the Freedom Unlimited picks up everything else with a minimum above-average return of 1.5X. Instead of settling for the Sapphire Preferred's underwhelming 1X on nonbonus purchases, you can route that spending through the Freedom Unlimited and boost your base earnings by 50%. Since both cards earn Chase Ultimate Rewards® points, combining them means you not only earn more, you also unlock better redemption value through the Sapphire Preferred's 25% travel portal boost or its valuable airline and hotel transfer partners. The no annual fee Chase Freedom Flex® brings rotating 5% bonus categories to the table, making it a trusty sidekick for your Sapphire Preferred. While it earns just 1% back on most purchases, the real value lies in its quarterly bonus categories, where you can earn 5% back on things like gas, grocery stores and online shopping. You'll earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. The Sapphire Preferred doesn't offer rotating categories, so the Flex fills a valuable gap, especially if your spending habits shift throughout the year. And like the Freedom Unlimited, it earns Chase Ultimate Rewards® points that become far more valuable once moved to the Sapphire Preferred. That means you can earn 5X points on select categories and redeem those points at a boosted 1.25 cents through Chase Travel—or transfer them to travel partners for even bigger wins. On the surface, the Sapphire Preferred and Capital One Venture X Rewards Credit Card (rates & fees) may look like competitors, but together they cover nearly every rewards gap. While the Sapphire Preferred focuses on bonus categories and point transfers, the Venture X offers flat-rate simplicity with 2X miles on every purchase—plus premium travel perks like lounge access and annual credits. Where the Sapphire Preferred lacks luxury travel features, the Venture X delivers: Partner Lounge Network access, Capital One Lounge access and a $300 annual travel credit for bookings through Capital One Travel. That travel credit, plus a 10,000-mile anniversary bonus, help make up for the $395 annual fee (rates & fees). Access to Capital One's transfer partners means you have even more options when it's time to book your dream trip. If you don't mind managing two issuers, this duo gives you premium travel perks, solid base earnings on every purchase and access to two of the most valuable rewards ecosystems. The Chase Sapphire Preferred® Card is an impressive standalone travel card, but it becomes far more powerful when paired with the right partner—or two. Whether you want to earn more on everyday spending, take advantage of rotating bonus categories or enjoy premium travel perks, combining it with cards like the Freedom Unlimited, Freedom Flex or Venture X can help you earn more, redeem better and get the most from every dollar. Find the best Chase credit card for your needs. As long as you pay your cards on time, avoid carrying a balance and practice good credit habits, having multiple credit cards will not negatively impact your credit score. It can even help your score over time. You don't have to stop at two cards to maximize your rewards and benefits. Take the Chase Trifecta, for example, where you can combine some of Chase's best cards, like the Chase Sapphire Reserve® or Preferred, with the Chase Freedom Flex and Chase Freedom Unlimited. Having a premium Ultimate Rewards card paired with no-annual-fee cash-back cards can unlock better earnings and more valuable redemption options. Chase doesn't publish the exact score needed to be eligible for the Sapphire Preferred, but as a premium credit card, you'll need at least a good credit score (at least 670 on the FICO scoring scale).
Forbes
25-04-2025
- Business
- Forbes
Don't Qualify For The Current Chase Sapphire Preferred 100K Offer? Here's Why It's Worth It To Be An Authorized User
The Chase Sapphire Preferred® Card is one of the best travel cards on the market, offering a long list of perks for a modest $95 annual fee. But if you already hold a Sapphire card or you received the welcome bonus within the last 48 months, you won't be eligible for the card's 100,000-point welcome bonus. Becoming an authorized user on someone else's Chase Sapphire Preferred® Card can be a win-win situation for all. Here's why. The Chase Sapphire Preferred® Card earns Chase Ultimate Rewards®, a flexible rewards currency that can be used as cash back, to book travel through Chase Travel℠ at a 25% increase in value or transferred to one of Chase's hotel and airline travel partners. The latter two are some of the best redemption options for those looking to use their rewards for travel and are a main driver behind the card's overall value. The Sapphire Preferred earns rewards at a rate of 5 points per dollar on travel purchased through Chase Travel℠, 3 points per dollar on dining, select streaming services, and online grocery purchases (excluding Walmart, Target and wholesale clubs), 2 points per dollar on all other travel purchases and 1 point per dollar on other purchases. That's a solid rewards rate for a card with a $95 annual fee. If you're added as an authorized user on someone's card, you'll both earn rewards at that same rate, and all the earnings will be combined under the primary cardholder's account. This can streamline your combined rewards-earning strategy and help you work toward a common goal. Chase allows points pooling between two household members, which opens up a lot of ways to make the most of your spending and points redemption strategy. For example, let's say Card Member A has a Chase Sapphire Preferred card and adds Card Member B as an authorized user. Card Member B has a Chase Freedom Unlimited®, which earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. Card Member A is added to Card Member B's Freedom Unlimited as an authorized user. If both parties used their Sapphire Preferred on travel and dining and their Freedom Unlimited on everything else, they'd earn between 1.5 points to 5 points on every purchase, allowing them to work together to build up a stash. The Chase Sapphire Preferred makes it easy for novices and experienced travel rewards redeemers alike to squeeze more value out of their points than if those rewards are used for cash back. Choosing to redeem Ultimate Rewards for cash back gives you a value of 1 cent per point. But the Chase Sapphire Preferred gives you two ways to make more out of your stash. Both the primary cardholder and the authorized user can book travel with rewards directly through Chase Travel, and the points will be worth 25% more—a valuable feature that makes it one of the best Chase cards on the market. In other words, book a $125 flight through Chase Travel, and it will only cost 10,000 points. Compare that to using cash back to pay for your flight. In that scenario, it would cost you 12,500 points since a point is worth 1 cent each when taken as cash. The secret sauce to travel rewards is when issuers offer travel transfer partners. The Chase Sapphire Preferred is one of three Chase cards that allow you to transfer your rewards to Chase's travel transfer partners. The other two are the Chase Sapphire Reserve® and the Ink Business Preferred® Credit Card. Transferring rewards directly to travel partners can save you a lot of points, so this is a worthwhile perk for anyone seeking a travel card. For instance, if we compare the price of a JetBlue (one of Chase's partners) flight Thanksgiving week in November 2025, one way from Fort Lauderdale (FLL) to New York's JFK airport, the lowest cash price is $209. Since bookings made through Chase Travel are based on the cash price, it would cost you 16,720 Ultimate Rewards points with the Chase Sapphire Preferred's 25% points boost to book this flight through Chase Travel. That same flight, when booked with points through JetBlue, requires just 13,900 TrueBlue points. This means you can save 2,820 points by transferring your Ultimate Rewards to JetBlue TrueBlue and booking that way. It may not seem like a huge difference, but the savings can really add up across multiple tickets or travel bookings. Good news here for authorized users of the Chase Sapphire Preferred: Both primary users and authorized users can transfer their rewards directly to one of Chase's travel transfer partners. Chase has a widely known (but unpublished) rule known as the '5/24 rule'. This means Chase will not approve you for a new credit card if you have applied for five or more personal credit cards from any issuer within the previous 24 months. If you are over 5/24 but want to utilize the Sapphire Preferred's benefits, it can make sense to become an authorized user on someone else's card. Related to this, you also cannot earn a welcome bonus on either the Chase Sapphire Preferred or the Chase Sapphire Reserve if you've earned a welcome bonus on any Sapphire card within the previous 48 months or currently own a Sapphire card as a primary card member. Someone who appreciates the benefits of their Chase Sapphire Preferred but wants an opportunity to earn a welcome bonus on the card down the line can go the authorized user route. The Chase Sapphire Preferred card charges an annual fee of $95, but there's no charge for authorized user cards. Saving that $95 is a nice perk of adding an authorized user instead of having them get their own card. It's worth noting that most financial institutions no longer offer joint credit card accounts, where both parties share responsibility for the account. So, for couples who want to share a credit card account, having one person as the primary cardholder and the other as an authorized user is the next best thing. The Chase Sapphire Preferred packs valuable travel protections into a card with an annual fee under $100. The card comes with primary auto rental coverage, trip cancellation and interruption coverage, baggage delay insurance and trip delay reimbursement. The card also offers purchase protection and extended warranty coverage. Anyone who travels is likely to experience a delay or an unexpected change in plans at some point, so these perks can add value. Additionally, the purchase protections can also save you a bundle if something you bought while traveling breaks or is stolen and you can't return to the merchant for assistance. Authorized Sapphire Preferred users get to enjoy these benefits on their cards. DoorDash is an online food and grocery delivery service. DashPass is DoorDash's subscription service that offers $0 delivery fees and lower service fees on eligible orders in exchange for a $9.99 monthly plan. The Chase Sapphire Preferred card offers both primary cardholders and authorized users complimentary DashPass access for a minimum of one-year when you activate the subscription by December 31, 2027. That could add up to major savings for those who frequently use the service. Becoming an authorized user on the Chase Sapphire Preferred card has loads of benefits. For those chasing a particular card strategy, it can make sense to become an authorized user rather than applying for the card outright. Plus, the opportunity to save money and work toward a shared rewards-earning strategy can help you and the primary cardholder reach shared travel goals.
Yahoo
07-04-2025
- Business
- Yahoo
Does closing a credit card hurt your credit?
It's a common question; unfortunately, the answer is yes. However, how much of an impact canceling a credit card has depends on your credit history and what other accounts you have a credit card can hurt your credit in three ways: Your credit utilization is the percentage of your total available credit that you use. For example, if you have a credit limit of $1,500 and a $750 balance, your credit utilization ratio is 50% — you're using half of your available credit. If you use a large percentage of your available amount of credit, creditors worry you may take on too much debt, which can lower your score. When you close a credit card, you can no longer access that credit limit, and your credit utilization increases. As a result, your credit score will likely decrease. Creditors like to see that you can manage various types of credit, such as credit cards, installment loans, and mortgage debt — this is your credit mix. If you only have one credit card and close it to avoid the temptation of spending beyond your means, you'll close the only revolving credit account on your credit limit, damaging your score. If you're worried about overspending, consider keeping a card open solely for automated monthly payments. You can keep it out of sight, but the automated payments on your regular spending (utilities, streaming services, other subscriptions) will keep your account and credit mix active. Here are some examples of cash rewards cards that could be useful for automating monthly payments: Read our full review of the Blue Cash Everyday card Read our full review of the Freedom Unlimited card Read our full review of the Savor Cash Rewards card If the card you want to close is one of your oldest accounts, closing it will significantly impact your credit. Closing the account will reduce the average age of your accounts, and your score could decrease. Alternatively, you may ask your issuer for a product change rather than opening a new credit card if your oldest credit card no longer suits your needs. For example, you may have opened the Capital One QuicksilverOne Cash Rewards Credit Card while building credit. But now you have an excellent credit score and would prefer a cash-back card without the $39 annual fee. Instead of closing the card outright, call and ask whether you qualify to upgrade to the regular Capital One Quicksilver Cash Rewards Credit Card with no annual fee. Or even a travel rewards card that may offer more value for its cost, like the Capital One Venture Rewards Credit Card with a $95 annual fee. That way, you can keep your existing account but still get your preferred a credit card can make sense in the following scenarios: It's your only credit card account: Credit mix is a key factor in determining your credit score. Your credit score can increase with a good mix of credit products, such as credit cards and loans. If you only have one credit card account and you close it, your score could go down. It's your oldest credit card account: Your credit history length also affects your credit score. The longer your credit accounts have been open, the better. Closing one of your oldest accounts could significantly impact your average length of credit history. You have a high credit limit: Closing a credit card with a high credit limit could increase your credit utilization, which could impact your credit score. You can switch to a different credit card product: In some situations, you don't have to close your account to switch to another credit card product. This can keep your account active while letting you choose a card that's better for you. Closing a credit card can make sense in the following scenarios: You have a card for users with bad credit: Cards for people with no credit history or poor credit often have very high rates and monthly or annual fees. As your credit improves and you can qualify for cards with better terms, you can save money by closing the old cards. You have a joint card, and your relationship ends: Joint credit cards are typically used by married couples, and you're responsible for any charges your partner makes. If you separate or divorce, you're still responsible for charges to the account; the only way to end your obligation is to close the account. You are trying to limit credit card debt: For some people, credit cards make it too easy to rack up debt. Switching to only using cash or debit can help them control their spending, and canceling the card can help them resist the temptation to use it. Closing a card can have a negative impact on your credit, but your score can recover if you follow other good credit habits. To improve and maintain your credit score, make all your required payments on time, limit new credit applications, and pay down existing you don't think it's worth keeping a credit card, consider asking your credit card company for a retention offer. Telling a customer service representative that you're thinking about canceling your account can typically start the conversation. Switching to a different credit card product keeps your current card account active and gives you a more favorable card. For example, you could switch to a no-annual-fee credit card to avoid an annual cost. However, being able to downgrade or change credit card products depends on your card and card issuer. Contact your credit card issuer by phone or chat to close your credit card account. Here are a few actions to take before closing your credit card: Move recurring payments: You don't want to miss any bill or subscription payments, so moving them to another card or bank account is essential. Pay off any remaining balance: Canceling a credit card doesn't cancel any attached debt. Pay off your credit card balance to avoid late fees, high interest rate charges, and your credit score taking a hit because of a negative payment history. Use or transfer rewards: Closing a credit card can forfeit any remaining rewards, so it's best to use or transfer them there's a specific reason to close an account, such as getting rid of a high annual fee, it's typically better to hang on to credit cards, even if you don't use them much. Keeping your credit cards active by using them occasionally on small purchases can help build your credit history by increasing the overall age of your credit accounts. Closing a credit card can hurt your credit score if it reduces your credit mix, lowers the average age of your credit accounts, or increases your credit utilization. To avoid further impact on your credit, stop all recurring payments and pay off your balance in full before contacting your lender to close your account. Closed credit card accounts in good standing typically stay on your report for up to 10 years, while closed accounts with negative information usually remain on your report for up to seven years. Both types of accounts stop affecting your credit history after they fall off your credit file. If your cards have low or no annual fees, consider keeping them open by occasionally using them for small purchases. Active credit card accounts can help improve your credit score by lowering your overall credit utilization and increasing the length of your credit history. Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
Yahoo
28-01-2025
- Business
- Yahoo
What is a balance transfer fee?
Credit card debt is more common than ever: 46% of American households carry credit card debt, according to a 2024 report from the Federal Reserve Bank of St. Louis. A balance transfer allows you to move a balance from one credit card to another. Balance transfers can help you manage your debt because credit card companies often offer promotional annual percentage rates (APRs) on transfers. With a lower APR, you can pay down your debt with less interest. But, it's important to consider any potential fees when deciding whether a balance transfer makes sense. What is a balance transfer fee? It's what you'll pay to move your balance onto another card, and it can eat into your potential savings. Most credit card issuers charge a one-time balance transfer fee, and it's commonly tacked onto your balance when you transfer debt to a new card. The exact cost varies by issuer, but it's usually between 3% and 5% of the amount transferred. For example, say you had $5,000 in credit card debt. If you transferred that balance to a card that offered 0% APR but charged a 5% balance transfer fee, you'd pay $250 to move your debt to a new card. That amount is added to your balance, so you'd owe $5,250 on the new card. Below are some top balance transfer cards and their transfer fees: Blue Cash Everyday® Card from American Express: Either $5 or 3% of the amount of each transfer, whichever is greater (see rates and fees). Chase Freedom Unlimited®: Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater. Citi Double Cash® Card: Either $5 or 3% of the amount of each transfer on transfers completed within four months of account opening. After that, the fee is $5 or 5% of the transfer amount. Discover it® Cash Back: 3% of the transfer amount on transfers completed by April 10, 2025. After that, 5% of the transfer amount. Wells Fargo Reflect® Card: 5% of each balance transfer ($5 minimum) Thanks to federal legislation, a card's fee structure is relatively easy to find. Every credit card agreement must have a "Schumer box" near the top — this is a table that summarizes all the APR and fee information you need. This includes the balance transfer fee, as well as any introductory APR offer that applies. If you already have a credit card, you can find the Schumer box in your agreement paperwork or your online account. If you're shopping around for cards, look for a link on the card's site titled something like "Terms and conditions," "Rates and fees," or "Cardmember agreement." Although it's an added cost, a balance transfer fee may be worthwhile depending on your balance amount, your existing APR, and the length of the promotional APR period. Consider these scenarios: You have a $5,000 balance on a credit card with a 22% APR. If you make only the minimum payment of $150 per month, it would take you 52 months to pay off the balance. You'd pay a total $7,798 to pay off the card in full. You transfer that balance to a card that offers 0% APR for 12 months with a 5% fee. Once the promotional APR expires, it's 22% APR. With this card, you'd pay $250 in balance transfer fees, making your new balance $5,250. With that balance and 0% APR for 12 months, you'd be debt-free in 42 months — 10 months sooner — and you'd repay a total of $6,214. Even with the balance transfer fee, you'd save over $1,500 by moving your balance to a new card. You have a $1,000 balance on a card with a 25% APR. If you only paid the minimum, it would take you 58 months to pay off the balance, and you'd pay a total of $1,725. You transfer it to a card that offers 0% APR for six months with a 5% balance transfer fee. Once the promotional APR ends, the APR is 35%. With this card, it would take 67 months to pay off your debt, and you'd pay $1,980. Thanks to the higher regular APR and balance transfer fee, the balance transfer would be more expensive than paying off the balance under the original terms. Balance transfer fees can reduce the effectiveness of the transfer, but there are some ways to reduce their impact: Balance transfer fees vary by credit card issuer. While the fee usually ranges from 3% to 5% of the transferred amount, some cards that offer lower fees. Particularly for cards issued by credit unions, you may find cards that offer balance transfer fees as low as 0%. However, these cards usually offer 0% APR for shorter periods than other options. With some cards, you can qualify for a reduced balance transfer fee if you complete the transfer within the first few weeks after opening the card. Review your card agreement to find out what the deadline is to get the lowest possible fees. To maximize the efficacy of a balance transfer, aim to pay off the balance in full by the end of the promotional APR. You may have to increase your monthly payment amount, but doing so will allow you to save more money and become debt-free faster, decreasing the impact of balance transfer fees. This article was edited by Alicia Hahn Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
