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® 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 20.49% - 29.24%. 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.
Chase Freedom Unlimited®
Rewards
Enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases.
Welcome bonus
Special Offer: Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
20.49% - 29.24% variable
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% of each transaction in U.S. dollars
Credit needed
Excellent/Good
Member FDIC. See our methodology, terms apply.
Read our Chase Freedom Unlimited® review.
Pros
- No annual fee
- Rewards can be transferred to a Chase Ultimate Rewards card
- Generous welcome bonus
Cons
- 3% fee charged on foreign transactions
Chase Freedom Flex℠
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 the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
Welcome bonus
Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% cash back on combined gas station and grocery store purchases (excluding Target and Walmart) on up to $12,000 spent in the first year.
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
20.49% - 29.24% variable
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%
Credit needed
Excellent/Good
Member FDIC. See our methodology, terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Read our Chase Freedom Flex℠ review.
Pros
- No annual fee
- Generous welcome bonus
- Opportunity to earn up to 5% cash back in select categories upon activation
- Rewards can be transferred to a Chase Ultimate Rewards card
Cons
- Bonus categories must be activated each quarter
- 3% fee charged on foreign transactions
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.
