Aaron Hurd
A balance-transfer credit card can be a great way to pay off debt. But finding a card with a generous interest-free promotional period that’s also convenient to use for regular spending isn’t always easy. That’s exactly how Bank of America Unlimited Cash Rewards Credit Card excels.
When you open a balance transfer card, you typically have a chance to move your existing credit card debt onto your new card. While there’s often a fee, you then typically enjoy 0% APR for a promotional period that may last a year or more, making it easier to focus on paying off what you owe.
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Unlimited Cash Rewards offers a 0% introductory APR on balance transfers and purchases for your first 18 billing cycles. This is one of the longest balance transfer periods available. The card’s balance transfer fee of 3% is lower than many offerings from other banks, and it charges no annual fee, meaning you will minimize the fees you pay while working to pay down your debt.
But what really makes the Unlimited Cash Rewards card stand out is that its 0% APR applies to purchases, meaning that you can also use the card for ongoing spending without paying any interest. The card also offers cash back rewards on purchases, making it a good choice to keep around even after your balances are paid off.
While you may be able to find another card that offers a longer interest-free period or a lower balance transfer fee, you won’t find a single card that delivers the complete package that the Unlimited Cash Rewards credit card does.
That’s why Buy Side from WSJ named this card its
Best Overall Balance-Transfer Credit Card.
To find the best balance transfer credit cards, we assumed your aim was to pay off a significant amount of credit card debt—for simplicity we picked $5,000—as quickly and cheaply as possible. We also considered other card benefits like points or miles, but we regarded these as a secondary concern, since cost of credit card debt typically swamps the value of any rewards you might earn.
If you transfer a $5,000 balance to the Bank of America Unlimited Cash Rewards card and can make payments of $286 or more each month, you can pay off your credit card debt entirely within a year and a half.
You will pay a 3% (min. $10) fee to take advantage of the generous 18-month 0% APR promotional period offered on this card and you must transfer your balance within the first 60 days of opening the account to qualify for the promotional APR. While the Bank of America Unlimited Cash Rewards card carries no annual fee, the 3% balance transfer fee will cost you $150, which we figured into our calculations.
The card also offers a 0% APR for purchases, meaning that you can use this card for ongoing spending without incurring interest charges. While your priority might be to pay down your debt, in practice having a card to continue to pay for necessities or shop online can be handy. Most credit cards start charging interest on purchases immediately if you carry a balance, so having a 0% APR that also applies to purchases allows you to use this card for your daily spending without incurring additional interest.
While Buy Side from WSJ judges balance transfer credit cards primarily on their promotional period, balance transfer fees and ongoing interest rates, some cards can be useful even after their promotional 0% APR periods. Here are some of this card’s additional benefits and fees that you should keep in mind:
The Bank of America Unlimited Cash Rewards card works best for a person who can afford to pay down transferred credit card balances within a year and a half and wants to be able to use their card for ongoing spending. If this is you, the Bank of America Unlimited Cash Rewards card gives you both a tool that can help you get out of debt and a rewards card offering 1.5% cash back rewards on all purchases.
Cardholders who have the budget to pay off credit card balances sooner than 18 months may find other Buy Side from WSJ balance transfer card picks to be cheaper options. If you can pay off your balances within a year, the Wings Visa Platinum Card offers an option to pay $0 in fees and interest. The card offers a $0 balance transfer fee and a 0% APR on purchases and balance transfers for 12 months.
For people who don’t have the budget to pay off their credit card balance within 18 months, the Navy Federal Credit Union Platinum card offers market-leading ongoing interest rates, plus a no-fee balance transfer offer with a 0.99% APR for 12 months. Navy Federal is a credit union and requires a military affiliation to join, so this card isn’t available to everyone. The Wings Visa Platinum also offers a competitive ongoing APR, making it a good next-best option for people who need to finance a balance long-term.
To pick Buy Side from WSJ’s Best Balance Transfer Credit Card, we looked for no-annual-fee credit cards offering balance transfers for new customers with 0% APR promotions. We preferred credit cards with longer balance transfer promotional periods and lower balance transfer initiation fees. Because most consumers will use a credit card while paying down debt, we favored cards that offered 0% APRs on both interest and purchases during their promotional period. All other things equal, we selected cards that are useful after the promotional balance transfer period because they offer rewards or other benefits.
Updated Jan 15, 2023
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