In time for the holiday season, Chase added a 0% intro APR balance transfer offer to two of its cash-back credit cards: the Chase Freedom Unlimited® (see rates and fees) and the Chase Freedom Flex®.
With this offer, you'll have 15 months of interest-free financing on purchases, and any balances transferred over from other credit cards. This can be helpful for your holiday shopping, or any other large purchases you make on a credit card.
Here's what you need to know about the offer.
Chase Freedom Unlimited and Freedom Flex 0% intro APR on balance transfers offer
Each of the Chase credit cards listed below gives cardholders an opportunity to earn valuable cash back, but now can help you consolidate credit card debt accumulated on other cards — without accruing interest.
For example, let's say you have a $3,000 balance on another credit card. You can transfer that balance to one of the cards below, and you'll have 15 months to pay it off before interest starts accruing once more.
The intro balance transfer feature is in addition to already having a 0% intro APR offer on purchases made on the card.
However, once the 15 month period is over on either purchases or balance transfers, the interest rate will increase to a variable APR of 18.24% - 27.74%. There's an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that it's either $5 or 5% of the amount of each transfer, whichever is greater.
It's never wise to carry a balance or spend more than you can afford on a credit card, but in this case, the 15-month-0%-intro APR period can come in handy for spending and purchasing flexibility.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has 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
The Chase Freedom Flex® is an excellent cash-back card with generous rotating quarterly categories. In additional the rewards, you also can take advantage of the intro APRs for purchases and balance transfer for more than a year.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Why to consider a balance transfer to a 0% APR card
Credit cards charge among the highest interest rates for lending products, making them a poor choice for someone who needs to carry a balance or borrow money. However, there are several reasons to consider a balance transfer credit card that offers an introductory 0% APR — the most attractive being that you avoid paying credit card interest. Americans carry a huge amount of credit card debt, and it's never a good idea to pay interest on top of your discretionary spending.
Other reasons to consider a new balance transfer credit card are:
- Organization: If you have several credit cards with revolving balances, it can be a nightmare trying to stay organized. By consolidating your debt into one card, it's easier to manage paying down debt.
- Earning more credit: By applying for a new credit card, you will earn more credit, which increases your overall credit line and decreases your overall credit utilization. Credit utilization, which is how much you owe compared to how much credit you have, makes up 30% of your credit score. By earning more credit from issuers, and managing it responsibly, you will improve your credit score over time. However, keep in mind that a large balance on your credit card can hurt your credit score also. So if your card has a $10,000 limit and you transfer $8,000 in debt over, that can be detrimental.
Fees to know about
A balance transfer can be worth it as you can save big on credit card interest charges. The process is also quite simple, and in some cases, done completely online. However, there are balance transfer fees to consider.
With the Chase Freedom Unlimited® and the Chase Freedom Flex®, you will need to pay either:
- Within 60 days of account opening: $5 or 3% of the amount of each transfer, whichever is greater.
- Past 60 days from account opening: Either $5 or 5% of the amount of each transfer, whichever is greater.
Lets say your credit card balance that you need to transfer is $3,000, and you complete it within the 60 day mark. Once it processes, you will have a $90 balance transfer fee added to the new card. That sounds steep, but if you stretch that out over 15 months, it comes to an averaged $6 monthly fee, which is likely much, much less than you were paying in interest charges.
Bottom line
If you're paying exorbitant credit card interest fees, it's likely best to consolidate your debt using a balance transfer credit card. However, it shouldn't be use to spend outside your means or to finance purchases that aren't needed.
Before you use your credit card or debit card for your next purchase, it may be best to first create a budget to avoid overspending.
