While carrying a balance on your credit card should never be your first choice, it's growing increasingly unavoidable for many Americans. The most recent New York Fed report on household debt and credit showed credit card balances totaled $1.23 trillion in the third quarter, up $24 billion from the previous quarter and up 5.75% from a year ago.
If you're in a position where you're carrying a balance on a credit card, there's a chance that a balance transfer card may make sense for you. A balance transfer credit card can help you temporarily avoid interest charges while paying down debt.
CNBC Select takes a look at how this record-high consumer credit card debt may be affecting people and ways a balance transfer card could help.
A closer look at record-high credit card debt
In addition to the U.S.'s record-high consumer credit card debt, balances that include retail cards and consumer finance loans also rose by $10 billion to a new total of $550 billion. While retail cards, also known as store cards, aren't as flexible as traditional credit cards, they still serve a similar purpose: allowing you to make purchases without paying up front.
Credit card debt can be among the most difficult types of debt to pay down, mostly due to its high interest rates compared to other debt types. With the holidays on the horizon, setting a budget before you shop is a good first step toward being more mindful about your spending.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees.
Freedom Debt Relief has resolved over $20 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
How does higher debt affect consumers?
As more individuals and families experience higher levels of financial strain, they often seek access to more credit. Aggregate limits on credit cards also rose, increasing by $94 billion (1.8%) in the third quarter. While taking on more credit might solve short-term issues, more credit can lead to longer-term debt.
High levels of financial strain can also lead to more defaults, and the Fed report showed that aggregate delinquency rates remained elevated in the third quarter of 2025. These missed payments can not only trap you in debt for longer due to higher interest charges but also negatively impact your credit score, hurting your ability to get approved for future financing.
Balance transfer cards to consider
If you move your existing credit card debt to a balance transfer card with no interest, you can pay it down over a set number of months without worrying about interest payments.
U.S. Bank Shield™ Visa® Card
The U.S. Bank Shield™ Visa® Card is one of the best options if you're looking for an extended timeline to pay back your debt. The card offers a 0% introductory APR on purchases and balance transfers for 21 billing cycles, followed by a 16.99%–27.99% variable APR. This $0 annual fee card also offers cell phone protection of up to $600, but has limited additional perks, serving primarily as a way to help pay down credit card debt. It does charge a 5% fee on balance transfers (min $5), which is higher than the 3% fee some other cards charge.
- Best-in-class intro-APR offers for purchases and balance transfers
- No annual fee
- Annual statement credit
- Cell phone protection
- Rewards limited to eligible travel purchases made through the U.S. Bank Rewards Center
- No welcome bonus
- Has a foreign transaction fee
- No intro balance transfer fee
Citi Double Cash® Card
If you're also looking to earn flat-rate cash back on a balance transfer card, the Citi Double Cash® Card offers 2% cash back on purchases: 1% when you buy and 1% when you pay. The card also offers a 0% intro APR for 18 months on balance transfers; after that, a variable APR of 17.49%–27.49% applies. Note, you'll pay a fee of $5 or 3% of the balance transferred, whichever is greater.
The Double Cash technically earns Citi ThankYou® Points, which can be redeemed for cash back or even transferred to American Airlines at a 1:0.7 ratio.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
Chase Freedom Unlimited®
While it has the shortest intro APR window compared to the previous two cards, the Chase Freedom Unlimited® (see rates and fees) offers a 0% introductory APR for 15 months from account opening on purchases and balance transfers (after the intro period, there's a variable APR of 18.24% - 27.74%). The Freedom Unlimited also charges a fee of $5 or 3% of the transfer.
It's a good option if you already own another Chase credit card. The Freedom Unlimited technically earns Chase Ultimate Rewards points on select travel, drugstores, and dining at restaurants and more, plus 1.5% back on all other purchases. You can pool your Ultimate Rewards between Chase cards, and if you have or eventually get a higher-tier Chase card, you could further elevate your points' value.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers get long intro APR
- No annual fee
- Travelers face a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 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 TravelSM, 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 use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- 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
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
$0
With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
$0
Bank from anywhere with access to more than 15,000 Chase ATMs, more than 4,700 Chase branches, the Chase Mobile® app and Chase.com.
FAQs
Do balance transfers hurt your credit score?
While the act of completing a balance transfer doesn't affect your credit score, opening a new card to do so might initially lower your credit score slightly. Opening a new card also increases your available credit, and as you pay down debt, you'll likely see positive impacts to your score overall.
What is the disadvantage of a balance transfer?
One disadvantage of balance transfer cards is the fees they often charge, typically 3% to 5% of your transferred balance. If you open a new card for the balance transfer, you'll also have to be responsible with your new line of credit to avoid further debt.
What credit score is needed for a balance transfer credit card?
While it varies by card, balance transfer credit cards typically require good or excellent credit (a FICO Score of 670 or higher) to qualify.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card story is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Read more
* Information about the U.S. Bank Shield™ Visa® Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
