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Balance transfer cards are an effective money-saving option for paying down high-interest credit card debt, and the longer the introductory period, the more you can save. There are a lot of great balance transfer cards on the market, but it’s hard to find a credit card with a 0 percent APR for 21 months these days.
That said, if you’re looking for a longer-than-usual introductory APR offer, you still have options. We’ll take a closer look at some of the 21-month introductory offer card options, as well as the pros and cons of those longer APR offers and alternatives you should consider for paying down your debt.
Cards offering 0% APR for 21 months on balance transfers
These cards offer the longest introductory APR periods for balance transfers on the market.
Who should receive this card?
Citi Simplicity is a great choice for people with good to excellent credit, with a FICO score between 670 and 850, who are willing to do a long balance transfer but short initial purchase period, and whose low-standard initial balance transfer fee of 3% offers significant savings over cards that typically charge 5%.
For example, if you transfer $5,000 to Citi Simplicity, the 3 percent balance transfer fee will add another $150 to your balance, for a total of $5,150. But a card with a 5 percent balance transfer fee would add $250 to your balance, for a total of $5,250.
Who should receive this card?
While the Citi Diamond Preferred does offer access to Citi Entertainment and has some extra perks, it’s not as ideal a card for balance transfers compared to the other cards on this list. Its higher balance transfer fees put it behind the Citi Simplicity. If you’re looking for a Citi balance transfer card, there’s no reason to choose this card over the Simplicity.
Who should receive this card?
Wells Fargo Reflect offers a similarly long 21-month introductory offer of 0 percent APR on both eligible purchases and balance transfers for those with at least good credit. If you need to make new purchases to transfer existing high-interest debt and pay it off over time, this card is a solid choice.
Who should receive this card?
The US Bank Visa Platinum card ticks all the boxes with a limited-time offer for 21 billing cycles (before the current 18.74-29.74 percent variable APR applies) on purchases and balance transfers. Plus, it has lower balance transfer fees than Wells Fargo Reflect. If you can transfer within the first 60 days, this card tops our list.
Other options
Want more options? Check with your local credit union or partner credit union. While credit unions don’t advertise their products as widely as the big traditional banks, they often offer very competitive interest rates on loan products, including credit cards.
Pros and Cons of 0% APR for 21 Months Credit Cards
Cards designed solely for balance transfers or to avoid interest on purchases are a boon to cardholders who may be carrying a balance or who want to pay off high-interest debt. Weigh the pros and cons of these cards before applying.
Strong Points
- It helps pay off debts. The period during which you can pay off your debt without interest is 21 months, which is the longest period available on any card, and having nearly two years to pay off your balance without interest accruing can be life-changing for some people.
- Ideal for bulk purchases. The best 0 percent APR cards also offer interest-free periods on purchases, allowing you to cover larger expenses over a long period of time.
- Your credit utilization ratio may improve. Opening a new card will increase your available credit, and as long as you don’t make purchases on new cards and focus on paying off your debt, your credit utilization ratio will go down, helping to improve your credit score.
Cons
- It offers fewer features and perks. Dedicated balance transfer cards tend to lack the perks available on rewards cards, such as cash back, sign-up bonuses and travel-related features.
- Balance transfer fees can be costly. Most balance transfer cards charge a fee of 3-5 percent of the transferred balance, which can add up to significant additional fees depending on the amount you’re transferring.
- Credit requirements are high. The best balance transfer offers require a good to excellent FICO score of at least 670. This is unfortunate, because cardholders in poor financial standing are more likely to benefit from a longer balance transfer term.
- You cannot transfer balances from the same bank. Banks typically don’t allow you to transfer balances between products, which means if you already have a Citi card, you can’t open a Citi Simplicity and move your balance onto it. If you find yourself in this situation, choose a card that’s not from your current issuer or consider another way to pay off your debt.
21 Month No Interest Credit Card Alternatives
Opening a 21-month balance transfer credit card is a great first step to paying off your debt, but other debt repayment options may be better suited to your situation. Here are some suggestions.
Conclusion
Balance transfer cards are one of the best tools to pay off debt interest-free with minimal hassle, and the 21-month introductory period gives you maximum breathing room to make payments comfortably. Given the recent trend in balance transfer cards of shortening introductory periods and increasing balance transfer fees, if you have your eye on a particular offer, we recommend applying for it soon.
*Information about the US Bank Visa® Platinum Card, Citi Simplicity® Card and Citi® Diamond Preferred® Card has been collected independently by Bankrate. Card details have not been verified or endorsed by the card issuers.
