You have many types of credit cards to choose from, some offering stronger rewards and more perks than others. A balance transfer credit card is a type of card designed to help you pay down existing balances you have on other credit cards.

With these cards, you secure a 0 percent annual percentage rate (APR) for a limited time, and then quickly pay down as much debt as possible — if not your entire balance — within that window. Balance transfer cards come with different introductory periods and a range of APRs you’ll pay after the intro period, so it’s important to compare various offers before signing up. Rewards can also be a factor in determining long-term value after you’ve paid down your debt.

Here’s what to know when choosing a balance transfer credit card:

1. Understand how balance transfers work

Don’t stop reading after “0 percent interest.” There are two key caveats you need to know when it comes to how credit card balance transfers work:

• 0% intro APR offers are always for a limited time. But even though they don’t last forever, some introductory offer periods can be quite long. The best balance transfer credit cards offer up to 21 months without interest. After the intro period ends, whatever balance you have on the card will start accruing interest at the card’s regular APR.
• You’ll almost always have to pay a balance transfer fee. The other key consideration is the balance transfer fee. Most balance transfer cards charge a fee between 3 percent and 5 percent (often with a $5 minimum) of the transferred balance. For example, if you transferred $1,000 of debt to a card with a 5 percent balance transfer fee, you would owe a $50 balance transfer fee. Use Bankrate’s balance transfer calculator to ensure that paying the fee is worth it compared to how much you’ll save on interest.

How much will you have to pay after your intro APR period ends?

Let’s use the Bankrate credit card payoff calculator to look at an example. Say you have $1,000 left on your credit card at the end of your introductory offer. If the regular APR is 24 percent, and you decide to pay $100 per month until your balance is paid off, it will take you 12 months to get there. That’s because, in addition to the $1,000 you borrowed, you will pay $127 in interest. This is why it’s ideal to pay off your entire balance before the intro period expires.

2. Decide whether a balance transfer is your best option

To make sure that a balance transfer is truly right for your financial situation, follow these steps:

Figure out how much debt you have total

The amount of debt you have will affect how long your debt repayment process will take. After all, it will take considerably less time to pay off $5,000 in credit card debt at 0 percent APR than it would to pay down $10,000 of debt.

Think about which debts you want to transfer

You can consolidate debt from several credit cards onto one new balance transfer card. Plus, while many people think of balance transfer cards as exclusively for credit card debt, you can often transfer different kinds of debts, too. This could allow you to consolidate your payments and take advantage of a 0 percent APR for a limited time — though it may not make financial sense to do so.

For instance, if the original interest rates on these debts are lower than the regular rate on your new balance transfer card, you shouldn’t transfer that debt unless you’re sure you’ll pay them off before your promotional period is up. Otherwise, you could end up stuck with a higher interest rate that accrues more interest than your original debt would have in the first place.

What are your other options?

If you have a considerable amount of debt to pay down, a balance transfer might not be the best tool for you. Instead, consider a personal loan. These tools can also be used to consolidate and pay down debt, and many let you secure a low fixed interest rate for five to seven years. Personal loans also come with fixed monthly payments and a predetermined repayment timeline, making them easy to budget and plan for.

3. Check your credit score

The best balance transfer cards are typically available only to consumers with very good or excellent credit — or those with a FICO score of 740 or above. However, you may also be approved with a good credit score in the 670 to 739 range.

Also, note that balance transfer cards for poor credit exist — though they typically come with less attractive terms and conditions for paying down debt.

Either way, it’s wise to see where you stand in terms of your credit score before you apply. Check your credit score to gain a better understanding of the cards you might qualify for.

4. Compare card offer details

When it comes to transferring debt from one card to another, there are a few factors you’ll want to consider.

• Length of the intro period. The best balance transfer credit cards offer a 0 percent intro APR for up to 21 months on transferred balances.
• Regular APR. At the end of your introductory period, the card’s regular interest rate will kick in, applying to any remaining balance and future balances. Compare it to the average credit card interest rate right now, which is above 20 percent.
• Fees. Balance transfer fees are typically 3 percent to 5 percent of the transfer amount. You should also consider any other fees, including if the card comes with an annual fee.
• Intro APR on purchases. Some balance transfer cards also offer a 0 percent intro APR on purchases, although this is likely less important when you’re focused on paying down existing debt.
• Rewards and perks. Many of the top balance transfer credit cards offer cash back on purchases, while others feature insurance protections, purchase benefits and more. Keep in mind, however, that attempting to earn rewards while paying down your debt can lead to additional problems down the road.

Rewards and perks are especially helpful to consider when choosing a balance transfer card. Bankrate Senior Editor Brooklyn Lowery came to learn this after doing a balance transfer with the now-discontinued Chase Slate card. Although it had no balance transfer fee and served its purpose at the time, rewards may have made the difference between a card that collects dust in a drawer and a card that delivers long-term value.

Balance transfer comparison example

If you’re hoping to maximize a balance transfer offer, take the time to put together a comparison that takes balance transfer fees and the length of an intro APR offer into account. These factors can help you save the most money possible, get out of debt faster or both.

Imagine you have $5,000 in credit card debt you want to pay off completely, and that you’re considering the Wells Fargo Reflect® Card and the Citi Double Cash® Card. On top of that, you’re set on paying off all your debt during the card’s intro offer period.

• The Wells Fargo Reflect® Card offers a 0% intro APR for 21 months from account opening on qualifying balance transfers made within the first 120 days, as well as on purchases, followed by a 17.24%, 23.74%, or 28.99% Variable APR. A 5% balance transfer fee (minimum $5) applies.
• The Citi Double Cash® Card offers a 0% intro APR on balance transfers for 18 months (transfers must be made in the first four months), followed by a 18.24% – 28.24% (Variable) APR. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After the first four months, it rises to 5%.

Here’s the breakdown of what you’d have to pay monthly in order to pay off the card before each intro APR period expires:

With the Reflect Card, you would pay an upfront balance transfer fee of $250, bringing your total starting balance to $5,250. Assuming you were approved for this full amount, you would have 21 months to pay off this debt at 0 percent APR, which means you would need to pay $250 per month toward the debt for the duration of the intro APR offer.

With the Double Cash Card, on the other hand, you would pay an upfront balance transfer fee of $150, bringing your total starting balance to $5,150. You’d have 18 months to pay off this debt with zero interest, which means you would need to pay just under $287 per month for 18 months.

The Wells Fargo Reflect Card lets you secure a lower monthly payment to get out of debt interest-free, but you’ll pay more for your balance transfer fee. Meanwhile, the Citi Double Cash Card allows more interest savings overall and gets you out of debt faster — but with a higher monthly payment required.

Calculate your own payment plan

Use Bankrate’s balance transfer calculator to find out how much you’d need to pay monthly to get out of debt before your intro APR period expires.

The bottom line

A balance transfer can be a powerful step toward debt management. The best balance transfer credit card for you depends on the amount of debt you have and how quickly you’re able to pay it off.

Before you apply, weigh the pros and cons of using a balance transfer card — including any additional fees that come with the 0 percent intro APR card and its rewards structure — as well as potential alternatives to paying down your debt.