If you have credit card debt, you can use the balance transfer offer to repay without increasing interest. However, there is no harm in transferring it with a card that will earn you rewards for new purchases in the future.
Balance Transfer cards usually offer a 0% intro APR over the long term, allowing you to transfer your balance from another card to start an interest-free repayment, but these cards do not normally earn rewards. However, some reward cards offer a 0% intro APR with balance transfer options and shorter durations, as well as the ability to earn rewards over the long term.
What is the difference between a balanced transfer card and a reward card?
Let’s take a closer look at two cards, such as when each might be useful.
| Strong Points | Cons | |
|---|---|---|
| Balance Transfer Card |
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| Reward Card |
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Balance Transfer Credit Card
Balance Transfer Credit Cards generally offer low interest periods of balance transfers for a set period, typically between 6 and 21 months. Then a higher normal annual rate (APR) begins. You may also face a balance transfer fee of 3-5% of your balance.
If you have debts on your credit card at a higher interest rate, transferring your balance to your 0% APR card will save you a lot of money with interest. However, Balance Transfer Cards generally do not have rewards or other perks. This makes it undesirable to hold it for the long term.
Rewards your credit card
Meanwhile, rewarding your credit card will provide you with miles that offer cashback, points, or miles. Some reward cards also offer a welcome bonus and a 0% intro APR window to encourage new cardholders. If these cards also come with a balance transfer option, it could be a viable way to repay existing debts while keeping them in your wallet for long-term value.
For example, it seems to be a popular reward card Wells FargoActiveCash® Card and Chase FreedomUnlimited® We offer cashback rewards, welcome bonuses and intro APRS for both purchases and balance transfers. That said, these cards have a shorter duration than balanced transfer cards, which can reach up to 21 months.
If your card also offers an intro APR with a new purchase, you will be immediately rewarded for your daily spending. But it’s dangerous to increase your balance while you still reward it. This can slow down your debt repayment journey. Bankrate’s 2025 tracking fees in debt investigations show that more than seven in ten indebted people are still trying to earn rewards.
Do I need to choose a balance transfer card or reward card?
One of the main factors in choosing a balance transfer card and reward card is that you can afford it with your monthly payments. Balance Transfer cards tend to have longer intro periods, allowing you to split the balance into smaller chunks. The intro period for reward cards may be short. This means a large monthly balanced repayment, but it has a higher chance of future revenue.
In both cases, the goal is to pay off your credit card debt before the intro period ends. After that, you may find yourself in even more debt, with a high normal APR likely to begin.
To see the difference between these two cards in operation, consider the following cards from the same issuer:
Wells Fargo card vs Wells Fargo active cash card
Wells FargoReflect® Card A proven balance transfer card, offering a 0% intro APR for 21 months from your qualifying balance transfer account made within 120 days. Card fee a 5%, Minimum: $5 Balance transfer fees and a 17.24%, 23.74%, or 28.99% Variable APR After the introduction period has ended. There is no annual fee, but there is no reward or welcoming bonus.
Wells Fargo Active Cash is a reward card, offering a 2% cash reward on purchase and a solid welcome. You will also provide a 0% intro APR for 12 months from opening an account with a purchase and qualifying balance transfer, then 19.24%, 24.24%, or 29.24% Variable APR.
Which cards make more sense to your financial situation? Pretend you’re transferring your $5,000 balance to either Wells Fargo Reflect or an active cash card. Here are the amounts you need to pay per month to pay back your debts within the introductory period of each card:
Wells Fargo reflects
If you transfer your $5,000 balance to your Reflective Balance Transfer Card within the first 120 days, your balance transfer fee will be $5,250. You will need to pay $250 a month during the 21-month intro period.
Wells Fargo Active Cash
Instead, if you transfer that $5,000 to your Active Cash Rewards card within the first 120 days, your total balance, including the balance transfer fee, will be $5,250. During the 12-month intro period, you will need to pay just $438 a month.
If you can afford a higher monthly payment, a reward card with a shorter intro period will help you earn more rewards on future purchases. As a result, the long-term value of the card is more long-term value. This means that you may not need to apply for a new card at the end of your debt service journey to maximize your continued rewards.
Conclusion
In most cases, wallets make longer balance transfer offers easier. You can pay off your debt and avoid interest charges during the intro period, while lowering your monthly payments.
However, consider the potential revenue from your reward card, welcome bonuses and other perks. If you think that even if the intro period is short, you can still make monthly payments with the transferred balance, you might decide that the reward card is more valuable.
Need help deciding which type of card is right for you? Check out Bankrate’s Best Balance Transfer Credit Cards and compare the advantages and disadvantages of each card before applying.
