If you’re a small business owner that has significant credit card debt, then a small business balance transfer credit card can be part of the solution. With a small business balance transfer credit card, you can get up to 20 months to pay down or pay off your credit card balances, without incurring any interest charges. These savings can be worth hundreds of dollars, while allowing you to pay off your outstanding balances even sooner.
But unlike with personal credit cards, there aren’t many small business credit cards that offer 0% APR balance transfer promotions. In fact, several major card issuers like Citi, Chase and American Express don’t currently offer business credit cards with 0% APR introductory financing. Of the few business credit cards that do offer interest free promotional financing for balance transfers, here are our favorites:
Best Business Credit Cards for Balance Transfers
- U.S. Bank Business Platinum Card: Best for long promotional financing offer.
- PNC Visa® Business Credit Card: Best for low standard interest rate.
- Wells Fargo Business Platinum Credit Card: Best 0% APR balance transfer card for earning rewards.
U.S. Bank Business Platinum Card
If you’re a small business owner that’s looking for the credit card with the longest possible 0% APR offer for balance transfer, then you should strongly consider the U.S. Bank Business Platinum Card. This card offers new cardholders 20 months of 0% on both new purchases and balance transfers, with a 3% balance transfer fee ($5 minimum). After the intro APR expires, the regular APR will apply, which is a variable APR that’s currently 11.99% to 20.99%, depending on your creditworthiness. This is the longest introductory period of any small business credit card that has an interest free balance transfer offer.
Otherwise, this is a very simple card with few perks. It doesn’t offer a new account bonus, or any cash back rewards for spending. However, it features robust card controls and expense management, while being compatible with all the major mobile payment technologies including Apple Pay, Google Pay and Samsung Pay. There’s no annual fee for this card.
*All information about the U.S. Bank Business Platinum credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
PNC Visa® Business Credit Card
If you’re looking for a small business credit card with an intro APR period and a low standard interest rate, check out the PNC Visa® Business Credit Card. Not only does it offer 13 months of 0% APR financing on balance transfers, it also features a standard APR of 9.99% to 19.99%, based on your creditworthiness. Qualifying transfers must be completed within 90 days of account opening.
And like most credit cards with an introductory offer for balance transfers, it doesn’t offer a rewards program. However, it does offer an optional program called Cash Flow Insight® which analyzes your business spending and helps you plan and budget for future business needs. Best of all, there’s no annual fee for this card.
*All information about the PNC Visa® Business Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Wells Fargo Business Platinum Credit Card
When you’re looking for a rewards card that also offers 0% APR introductory financing, then check out the Wells Fargo Business Platinum. It offers new accounts nine months of 0% APR financing on both new purchases and balance transfers, with a 4% balance transfer fee.
At the same time, it also features your choice of cash back or earning rewards points. You can either earn 1.5% cash back on all purchases, with no limits (excluding balance transfers), Your cash back is received as a statement credit to your account or to your eligible checking or savings account once each quarter.
And if you choose to earn points, you’ll earn one point on every dollar spent and receive 1,000 bonus points every billing cycle when you spend at least $1,000 on qualifying purchases. And if you choose the points option, you can redeem them for merchandise, airline tickets and other options. You also get a 10% points credit every time you redeem your points online.
You can also earn a one-time $300 cash back bonus or 30,000 bonus points when you select a Business Card Rewards Program and spend $3,000 in the first three months of account opening. Once the promotional rate expires, the standard interest rate for purchases will be between the Prime Rate plus 7.99% and the Prime Rate plus 17.99%. The rate you receive will be based on your creditworthiness when you applied.
This card doesn’t include too many cardholder benefits, but it does have a unique feature. Wells Fargo offers its Card Design Studio® Service that allows you to customize the design of your card and your employee cards. There’s no annual fee for this card, and no foreign transaction fees imposed on charges processed outside the United State.
*All information about the Wells Fargo Business Platinum Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
What is a Credit Card Balance Transfer?
A credit card balance transfer is when you use one credit card to pay off all or part of the balance of another card. This effectively transfers the balance to the new card. A consumer or a small business will typically perform a balance transfer in order to take advantage of a lower interest rate, which is often a 0% APR promotional financing offer. Their goal will be to save money on interest charges while paying off their outstanding balance sooner. However, these balance transfer offers will almost always incur a balance transfer fee of 3% to 5% of the amount transferred, which gets added to the new balance.
How Do Business Credit Card Balance Transfers Work?
A business credit card balance transfer works just like a balance transfer with a consumer card. The account holder will contact their credit card issuer of their new credit card and request a balance transfer from an existing account. The credit card issuer that the business owner is transferring the balance to will issue a payment to the account that the balance is being transferred from. There will also be a balance transfer fee added to the new account’s balance.
When is a Balance Transfer a Good Idea?
Credit card offers with 0% APR financing for balance transfers can be extremely valuable, but it isn’t for everyone. First, you need to have a significant business debt held by their credit cards. That’s because a balance transfer fee of 3% to 5% isn’t worth paying if you could simply pay off your balance in a month or two. These offers are also a good idea for those who have excellent credit and can qualify for the best balance transfer credit cards, and receive a large line of credit. You should also consider the value of a rewards credit card with a generous sign up bonus, rather than opening a new account with a card with a 0% balance transfer APR.
Does a Balance Transfer Affect Your Credit Score?
A balance transfer won’t directly affect your credit score, and it could be an indirect benefit. When you transfer a balance from one account to another, it won’t affect your credit utilization. And since credit scoring formulas like FICO value a credit history on-time payments and credit utilization the most, a balance transfer will have no direct effect. However, eliminating interest changes will also result in a lower monthly payment, which can help your credit score.
What to Consider Before Doing a Balance Transfer
When done right, a business credit card balance transfer can save you hundreds, if not thousands, of dollars in interest. But if you’re not careful, it could end up costing you more. Here are some things to keep in mind before setting up a balance transfer:
Know the APR
For large transferred balances, it may be impossible to pay off the entire credit card debt before the introductory APR promotion ends. If you don’t finish it off in time, you’ll get hit with interest charges again on your next billing cycle. The lower that rate after the intro offer, the better.
Have a Plan
Credit cards don’t have set repayment terms like small business loans do, and the minimum payment due each month is typically just 1% or 2% of your balance. If you pay just that minimum, it could take you years to pay off the debt (far longer than that introductory rate of 0%), and you could pay hundreds more than you needed to in interest alone. Pay more than the minimum due each month and have a plan for how quickly you can pay it off to minimize those interest rate fees. Ideally, you should be able to pay off the entire transferred balance before the promotional financing offer ends.
Do the Math
With a balance transfer fee of around 3% of the transfer amount, it may cost you hundreds of dollars just to move your credit card debt. But if you’re planning to pay off the balance in just a few months, that fee could cost you more than the interest rate you were paying on the original card. Crunch the numbers based on your situation to make sure you’ll save with the transfer.
Beware of Other Fees
While transfers often have low intro rates, there are other fees, like cash advance and foreign transaction fees, that can quickly eat a hole in your budget. While being able to access cash from your credit card may be convenient, consider other options that may be more cost-effective, like small business loans.
Address the Core Problem
A balance transfer card can help you pay down debt, but it won’t provide a solution for the reasons you got into debt in the first place. Take a look at your cash flow and determine what caused you to rack up business credit card debt. Then find a way to address those problems in other ways, such as reducing business expenses, increasing revenue, or looking for cheaper business financing options.
Keep an Eye on Your Credit
How much debt you have on your credit card compared against your credit limit, as well as whether you pay your bill on time each month, may impact both your personal credit scores and business credit scores. It’s a good idea to keep an eye on your scores as well as your credit report so that, should you decide to apply for a business loan down the road, you will get credit approval right away.
The Bottom Line
If you have a credit card balance, a small business balance transfer credit card can make your life a whole lot easier. What’s more, the best credit cards also provide other benefits that make them worth holding onto long after the promotional period ends.
As you look for the right card for your business, shop around. Compare these and other top business credit cards to ensure that you get the features that will best help you and your business.
Once you get the card, request the balance transfer as quickly as possible to maximize the 0% APR promotion. By aggressively paying down your new balance, you can avoid dealing with high interest rates again after the promotion ends.