Do balance transfer cards have rewards?

What is a Transfer Balance Card?

In order to entice customers, some credit card companies introduce balance transfer card programs where balance transfer fees (usually 3-5% of the transfer amount) are waived. The transfer balance card often begins with an introductory period of six to 18 months of zero interest charged on the transfer balance. Customers are still required to make at least minimum monthly payments (at 0% interest rate) for the transfer and any new purchases. 

Such transfer balance card programs are used by customers who want to save money by using an additional credit card with a lower interest rate. However, any violation of the program’s agreements can nullify the introductory APR and induce penalty rates. 

Rewards

Different cards have varying rewards and rates. For example, the Discover it^® Balance Transfer card offers cash-back rewards while the Amex EveryDay^® Credit Card waives a typical annual fee and gives Membership Reward points. However, since transfer balance card programs focus on helping customers save money and pay off debt, they don’t offer the best rewards, in comparison to a typical rewards card program. 

As for the benefits of investing in a transfer balance card:

• Interest Savings

Transferring debt to a card with 0% introductory APR will save money in interest. These savings could add up to hundreds and thousands of dollars over time depending on the transfer amount and can push a customer to get out of debt fast.

• Low Transfer Rates

Most transfer cards with a waived introductory interest fee charge relatively low transfer fees, ranging from 3% to 5% of the transfer amount. Some card programs even waive this fee for the initial time period or don’t charge extra at all. 

• Simplified Finances

In case a customer is juggling multiple payments and due dates with multiple cards, it might be easier to merge them into one lower-interest payment program. 

Conclusion

Transfer balance cards have multiple benefits that vary from customer to customer but essentially target customers who want to save money while paying off their debts. Some transfer programs offer additional reward benefits but typical rates are much lower than regular reward cards.