The Best Business Balance Transfer Credit Cards in 2020
UPDATE (May 2020): American Express Blue Business Cash and Blue Business Plus cards no longer offer 0% APR on balance transfers.
To help better manage your business credit card balances, you might consider a balance transfer to a business credit card with a lower APR. It’s a valid strategy to minimize or avoid interest charges while paying down high-interest credit card debt.
If this is a financial move you’re thinking about for a business’ credit card debt, here are the best business balance transfer credit cards to consider.
Best Business Balance Transfer Credit Cards
Blue Business Cash Card from American Express
The offers an introductory 0% APR for a period of 12 months on purchases and balance transfers. That allows you plenty of time to help pay down interest-free balances. Do note that there is a 3% balance transfer fee ($5 minimum).
This card also offers 2% cash back on purchases up to $50,000 per calendar year -- then 1% after that. So, it’s a versatile business cash back credit card to keep around.
Blue Business Plus Card from American Express
The also offers an introductory 0% APR for a period of 12 months on purchases and balance transfers. The same 3% balance transfer fee ($5 minimum) applies.
However, this card offers 2x Membership Rewards points per dollar spent on the first $50,000 in purchases each calendar year; 1x Membership Rewards points thereafter. With the points-based rewards program, you may consider the different ways to maximize Membership Rewards points, such as transferring them to partnered travel loyalty programs.
U.S. Bank Business Platinum Card
The card offers a lengthy 0% introductory APR for 20 billing cycles on purchases and balance transfers. For those aiming to transfer balances, that’s nearly two years without having to pay interest. The balance transfer fee is 3% (or $5 minimum).
While the card also provides a relatively low ongoing APR (after the intro period), there is no rewards program.
What Factors to Consider
Applying for any credit line can be a big deal for your business and you should take a moment to think it over before finalizing your decision. Here are some pointers to help guide you on choosing a business balance transfer credit card:
Here are some pointers to help guide you on choosing a business balance transfer credit card:
Length of the intro period
Different business credit cards can have varying introductory period APRs and introductory periods.
Ideally, you want a 0% introductory APR on balance transfers for as many months as possible. This would offer you the longest time to pay down transferred business credit card debt without worrying about interest charges.
Balance transfer fee
Usually, credit card balance transfers are not free. Typically, you can expect to pay a balance transfer fee of 3% of the transferred amount (with a $5 minimum).
If you’re transferring a large balance to a new business credit card, the balance transfer fee could be quite expensive. While the interest savings could be major, the fee should still be taken into account.
While a business balance transfer credit card can be used for the purpose of helping your business pay down high-interest debt, the card can still have ongoing rewards or perks after the introductory period.
So, you’re not just stuck with a useful business credit card that no longer has a purpose.
Can You Transfer Personal Debt to a Business Credit Card?
Yes, it is possible to transfer a personal credit card balance to a business credit card, but there are rules that may vary based on the card issuer and state laws.
Generally, you shouldn’t mingle personal debt with business debt for proper bookkeeping purposes.
To be sure about the exact rules for your situation, contact the prospective card issuer for the rules regarding their cards and your specific state.