How to Get a 0% Intro APR without Paying a Balance Transfer Fee

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If you’re paying down the balance on a credit card over time, the interest costs can be astronomical! While it’s always best to pay your balance in full each month, at some point, you may end up in a situation where you need some extra time—especially after the holidays. The common-sense solution is to move your high-interest balance to a card with a 0% balance transfer offer.

In today’s post, we’re going to try to talk you out of that plan by sharing a strategy where you can get the same 0% intro APR rate, without the huge fees and other restrictions that come with balance transfers.

Why Balance Transfers Aren't a Great Option

There are four key reasons why balance transfers aren't the best way to cut your interest expenses:

1. The Balance Transfer Fee — Most credit cards charge between 3-5% to transfer a balance. If you need to pay off a $6,000 balance over time, the initial fee will take $180-300 out of your pocket.
2. No Rewards Earned on the Transfer — Even if you transfer a balance to a rewards card that earns points or cashback on purchases, the amount transferred won't earn any rewards.
3. No Signup Bonus — Most cards with balance transfer offers don't come with a signup bonus. As far as the bank is concerned, the 0% introductory APR is the new cardmember offer. Even if there is a welcome offer, it's usually not a good idea to make purchases with a card that has a transferred balance at an introductory APR.
4. Transfers to the Same Bank Aren't Allowed — You can't transfer a balance between cards from the same issuer. If you're carrying a balance on a Chase credit card, Chase balance transfer options are off the table.

If you do want to explore a traditional balance transfer, the Citi Double Cash^® Card is a great place to start. You can see our roundup of the top balance transfer offers here. But first, check out the strategy below to see if it could work for you.

Save on Interest, Earn Rewards, and Skip the Fees

Fortunately, there is a great strategy that will solve all four of the problems above. You can get an extended 0% intro APR period, earn rewards on each purchase, earn a signup bonus, and you can even open a new card issued by the same bank where you currently hold the high-interest balance.

The solution is to take advantage of a 0% introductory APR on purchases and use your normal monthly budget to pay off the high-interest balance. Here’s how it works:

1. Rather than applying for a balance transfer card, apply for a card featuring a 0% intro APR offer on purchases
2. Charge all your monthly expenses to the 0% intro APR card for the first 2-3 months, keeping in mind the minimum spend required to reach the signup bonus
3. Use the money in your normal monthly budget to pay down the high-interest credit card debt while making minimum payments on the new card.
4. Pay down the intro 0% APR card over the 12-15 month introductory period

For example, let’s say you are carrying a $6,000 debt on a high-interest credit card. If you transfer that balance, a 3% to 5% fee would cost you $180-300.

Instead, you can apply for a card with a 0% intro APR on purchases—like the Chase Freedom Unlimited^® or Blue Cash Everyday^® Card from American Express (Rates & Fees). Place all of your monthly expenses on the new card to earn the welcome offer. Then, use the cash you would typically put aside for monthly expenses to pay down the $6,000 credit card debt.

Chase Freedom Unlimited^®

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Rates & Fees

Chase Freedom Unlimited^®

Annual Fee$0

Welcome Bonus Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening

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Why We Like ItHighlightsEarning Rates

The everyday workhorse of the Ultimate Rewards family of cards earns 1.5% cash back on every purchase, every day of the week. While the Freedom Unlimited earns cash back on its own, the points earned become even more valuable when you hold an Ultimate Rewards card with the ability to transfer points to partners.

• Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
• Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
• No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
• Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% - 28.49%.
• No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
• Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
• Member FDIC
• Rates & Fees

• Earn 5% on purchases through Chase Travel℠
• Earn 3% on dining at restaurants
• Earn 3% on drugstore purchases
• Earn 1.5% on all purchases

Provided your monthly expenses are in the range of $2,000 to $2,500 per month, over the initial 2-3 months you’ve effectively transferred your $6,000 high-interest balance to a 0% intro APR offer without paying a balance transfer fee. Plus, you’ve earned a welcome offer and additional points in the process.

Blue Cash Everyday^® Card from American Express

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Rates & Fees
(Terms apply)

Blue Cash Everyday^® Card from American Express

Annual Fee$0

Welcome Offer Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

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Why We Like ItHighlightsEarning Rates

The Blue Cash Everyday is a solid, no-annual-fee cashback card for anyone who spends a lot on groceries and gas.

• Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
• No Annual Fee.
• Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 20.24% to 29.24% variable APR.
• 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
• 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
• 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
• Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
• Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
• Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
• Terms Apply.
• Rates & Fees

• 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
• 3% cash back at U.S. gas stations (on up to $6,000 per year, then 1%)
• 3% cash back with U.S. online retailers (on up to $6,000 per year, then 1%)
• 1% back on other purchases
• Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Best 0% Intro APR Cards for Purchases

Below, you’ll find a few of our favorite personal and business cards featuring 0% intro APR periods on purchases. Each card listed provides a generous welcome offer (particularly the two Chase Ink Business cards) and provides a decent return on everyday spending, helping you to maximize this strategy.

If a longer intro APR period is a higher priority than earning rewards or a signup bonus, you can find some additional options with an intro period of up to 18 months in our post on the best current 0% purchase APR offers.

Potential Drawbacks

The main challenge with this strategy is that it may take some time to fully transition your outstanding balance to the new card offering 0% APR on purchases. If your normal monthly budget is only $500, it probably doesn't make sense to slowly pay down a large balance in $500 increments—by the time you execute the process, you may be close to the end of your intro 0% purchase APR period.

It's also worth noting that you'll still be paying interest on the original credit card for the first few months. In most cases, you'll still come out far ahead, but you should run the math for your situation before you decide. Don't forget to consider the value of the points or cash earned from spending and the welcome offer before comparing it with the balance transfer fee.

How to Evaluate Intro Purchase vs. Balance Transfer Costs

Here's some quick math for the example above with a $6,000 balance which you expect to pay down in $2,000 increments over three months:

If you assume a 20% annual interest rate on the high-balance card, you can approximate the monthly interest by dividing the rate by 12. In this case, we get 1.66% monthly.

• Month 1: You'll pay interest on $6,000 ~$100
• Month 2: You'll pay interest on $4,000 ~$67
• Month 3: You'll pay interest on $2,000 ~$33

Total interest costs here are ~$200

If you opt for a balance transfer offer with a 3% fee, you'd pay $180 to move your balance.

If you look at the Blue Cash Everyday intro offer, you'll earn $200 back in statement credits after you spend $2,000 in purchases on your new Card within the first 6 months. That means the minimum rewards you'll earn, without factoring in extra cashback earned via bonus categories, will be $260 ($200+$60).

Final Thoughts

There is a widespread view that balance transfer cards are the most efficient method of paying down unwanted debt on a high-interest credit card. However, if you are comfortable putting in a little extra work, a card with a 0% intro APR on purchases can do the same job without the transfer fees—and you can earn a boatload of rewards in the process.

For rates and fees of the cards mentioned in this post, please visit the following links: Blue Cash Everyday^® Card from American Express (Rates & Fees), Chase Freedom Unlimited^® (Rates & Fees), Ink Business Cash^® Credit Card (Rates & Fees), Ink Business Unlimited^® Credit Card (Rates & Fees), and Blue Cash Preferred^® Card from American Express (Rates & Fees)

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