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For those looking to trade big-city life for backyards and gardens, more square footage, home office space, and parks, the suburbs may be the perfect spot to call home.

Let’s not forget great public schools, a hallmark of a high-ranking suburb.

Top 50 Suburbs in the US

Although the country teems with ’burbs, here’s a look at the 50 best suburbs according to Niche, using government data and community reviews.

If safety is a big priority, also take a look at the 50 safest cities in America.

1. Chesterbrook, Pennsylvania

Chesterbrook was crowned first among U.S. suburbs. With highly rated public schools and an intimate feel (under 6,000 residents), this Philadelphia suburb is leafy and cozy. Chesterbrook is among eight Keystone State suburbs on this list.

2. Penn Wynne, Pennsylvania

Real estate can get pricey in Penn Wynne (also known as Wynnewood), a small Philly suburb where about half of the population of 6,650 has at least a master’s degree and where locals are passionate about the arts. Bars, coffee shops, and parks lend an urban-suburban feel.

3. Ardmore, Pennsylvania

Those looking to put down roots in a suburban neighborhood that also has an urban feel will like Ardmore, yet another Philadelphia ’burb, with about 13,800 residents. It has plenty of restaurants, bars, coffee shops, and parks to choose from and excellent schools.

4. Los Alamos, New Mexico

This historic suburb of 13,400 denizens is the birthplace of the atomic bomb, but it also happens to be known as a great place to live with a top-notch public school system and nature all around.

5. Carmel, Indiana

Carmel, north of Indianapolis, features neighborhoods rich in architectural diversity and low in crime. This spot is home to more than 103,000 people.

6. Great Neck Plaza, New York

With eateries, parks, and superlative public schools, this village on the North Shore of Long Island is walkable, dog friendly, and commutable to Manhattan by train. The burg of 7,640 has a strong contingent of retirees and home prices below the national average. If this New York suburb isn’t the right fit, maybe one of the other nine will be.

7. Okemos, Michigan

The east side of East Lansing is beloved because of its low crime rates, lower-than-average cost of living, and the amenities at Michigan State University. With a population of about 25,870, Okemos has stellar public schools, a college town vibe, and a small base of tech employment.

8. Richmond Heights, Missouri

This St. Louis suburb, home to about 9,400 people, offers amenities for both families and young professionals. With highly rated public schools, Richmond Heights also has a vibrant nightlife scene and good housing options.

9. Holly Hills, Colorado

For a small-town feel and great public schools, hop on over to Holly Hills. This Denver suburb is home to about 2,700, so you’re likely to know a lot of your neighbors.

10. Brookline, Massachusetts

This Boston suburb’s public schools constantly receive high marks and welcome families from around the globe. With about 64,000 residents, Brookline is attractive but not cheap: Its median home sale price is more than double the national median.

11. Great Neck Gardens, New York

With fewer than 1,300 residents, this New York City suburb has the usual perks of a coveted hamlet, and a relatively gigantic housing cost.

12. Clarendon Hills, Illinois

This community southwest of Chicago (pop. 8,760) offers top-notch public education for children, a safe environment, and a vibrant downtown. The median home sale price is a bit above the national median.

13. Swarthmore, Pennsylvania

Swarthmore has small-town charm but is only a 20-minute train ride to Philadelphia’s museums, theaters, and restaurants. The suburb of about 6,600 offers more than two dozen forested trails for those looking to connect with nature.

14. Clayton, Missouri

Those looking to give their career a boost may find opportunity in Clayton. This St. Louis suburb of 17,600 employs over 7,300 people. Clayton is also considered green and safe. The median home price tends to be above the U.S. median price.

15. Brentwood, Missouri

This affordable St. Louis suburb is home to nearly 8,300, many of whom are young professionals. Highly rated schools, a high homeownership rate, and a variety of parks and dining establishments make Brentwood one of the best suburbs in the Show-Me State and the country.

16. Brighton, New York

Brighton is overflowing with historic charm. This Rochester suburb of 37,200 was established in 1814 and features well-preserved 19th-century brick homes.

17. Manhasset Hills, New York

About 3,660 people call this New York City suburb home. Manhasset Hills has a rural feel and an average home sale price topping $1 million.

18. Mount Lebanon Township, Pennsylvania

Architecture lovers will fall head over heels for this neighborhood (lovingly known by locals as Lebo). This Pittsburgh suburb of about 33,600 people blends sophistication and small-town charm. Take your pick from American Craftsman, stone Colonials, Prairie, and English Tudor style homes.

19. Oakwood, Ohio

With about 9,500 residents, this Dayton suburb has a sparse suburban feel and an abundance of parks, bars, restaurants, and coffee shops. Most residents own their homes, and the public schools are, well, you know, above par.

20. North Potomac, Maryland

North Potomac, only about 20 miles from Washington, D.C., earned a spot on this list, thanks to awesome public schools and family amenities, not to mention a walkable and diverse environment. It’s home to about 23,700 people.

21. Narberth, Pennsylvania

You won’t get lost in the crowd in this friendly Philadelphia suburb of 4,500, which has an urban-suburban feel with historic homes, shops, restaurants, a train station, and the requisite good public schools.

22. Syosset, New York

Yet another New York City suburb makes the list. Syosset, with over 19,000 residents, has a rural vibe and all the bells and whistles of an attractive suburb. It also has a housing cost of more than twice the national median.

23. Wayland, Massachusetts

This Boston ’burb hosts 13,800 people, including a good number of retirees. People consider it safe, pretty, pricey, and calm.

24. Jericho, New York

Families will appreciate Jericho’s highly rated public schools, parks, and other amenities. The affluent Long Island hamlet of 15,000 is within reach of Manhattan.

25. Greenville, New York

Greenville, often called Edgemont, is a bedroom community of 4,700 residents north of Manhattan. It’s a magnet for parents who want good public schools.

26. Morrisville, North Carolina

Those who are moving to the Raleigh area may find Morrisville appealing, thanks to proximity to amenities and career opportunities like Raleigh-Durham International Airport, Research Triangle Park, and the Lenovo headquarters. The average home price in this community of 31,840 is around the national average.

27. Williamsville, New York

This little Buffalo village has great schools, several parks, historic landmarks, and a relatively low cost of living.

28. Long Grove, Illinois

Another Chicago suburb makes the list. Long Grove, pop. 8,400, is considered a great place to raise a family, thanks to highly rated public schools and low crime rates.

29. Mountain Lakes, New Jersey

This tiny suburb 31 miles from Manhattan is considered safe, charming, and green. It’s a wealthy pocket with a strong sense of community.

30. Chesterfield, Missouri

This sizable St. Louis suburb of 50,500 is partly situated on the floodplains of the Missouri River. There is no shortage of attractions here, including historical houses, conservation areas, and dining options.

31. East Williston, New York

Here’s another Manhattan bedroom community, this time 20 or so miles from the big city. The tiny Long Island suburb has great schools and a hometown feel. Household income and education level skew high, as they do in most of the ’burbs on this list.

32. Cascades, Virginia

Cascades is the first Old Dominion ’burb on the list of the top 50 suburbs in the U.S. The neighborhood of about 12,500 is within driving distance to Washington, D.C., and has good public schools, parks, playgrounds, and great housing options.

33. Kensington, New York

This tiny Manhattan suburb attracts families and retirees for all the reasons a ’burb bursts into the top 50. This is a highly educated, high-income enclave.

34. Ridgewood, New Jersey

This New York City suburb offers residents a sparse suburban feel, and most residents own their homes. The focus in this family-friendly village of over 26,000 is education. Home prices skew high.

35. Cary, North Carolina

Cary, with over 182,000 residents, affords fun, from outdoor concerts and movies to the annual Beer, Bourbon & BBQ Festival. Stop by the quaint downtown of this Raleigh suburb during the holiday season for a charming experience.

36. Aspinwall, Pennsylvania

This little borough on the Allegheny River is near downtown Pittsburgh. It’s historic and picturesque, with high education levels and average home prices below the national average.

37. South Kensington, Maryland

This little ’burb is near Washington, D.C., and has not-tiny home prices. With fewer than 9,000 residents, South Kensington has great public schools, a family-friendly vibe, and a nightlife scene. It looks like Mom and Dad need to book a babysitter.

38. North Bethesda, Maryland

Here’s another pocket of tranquility in the Old Line State. There are so many benefits of living in North Bethesda that it’s hard to keep track. Situated close to Washington, D.C., this suburb has its own dining, shopping, and entertainment scene.

39. Santa Monica, California

Santa Monica residents are lucky enough to live a stone’s throw from the Pacific Ocean, and many live within walking distance of the famed Third Street Promenade and its many restaurants, shops, and other amenities. Bring your wallet, of course, if you plan to live here.

40. Cave Springs, Arkansas

Move over, Hot Springs. Cave Springs made the list. Named for two caves and the water source that flows from one of them, this suburb of about 6,250 people has a small-town feel, home prices in line with the national average, and A-rated public schools.

Recommended: Home Affordability Calculator: How Much House Can You Afford?

41. Innsbrook, Virginia

Innsbrook is a thoughtfully planned community that is an ideal place to live, work, and play. Fortune 500 companies, startups, and small businesses are attracted to this Richmond bedroom community of 9,250 people.

42. Cinco Ranch, Texas

Cinco Ranch’s public schools, housing options, and job market put it on the map. A lot of house for the money combined with great outdoor and nightlife activities make this suburban swath of over 16,000 outside Houston a hot spot.

43. Fishers, Indiana

This Indianapolis suburb has an average of 187 clear days every year and an average high of 85 degrees in the summer. Many families and young professionals live in Fishers, pop. 37,835, where the average home price is below the national average.

44. Ottawa Hills, Ohio

The second Ohio suburb to make the list of the most popular suburbs in the U.S. is Ottawa Hills. This village outside Toledo is safe, well educated, affordable, and good for families.

45. Short Pump, Virginia

Short Pump, named for a short-handled water pump for horses at an 1800s tavern there, has a population of 27,500 and is home to lots of families and young professionals who own their own homes. This dense suburban neighborhood outside Richmond has good schools, great housing options, and nightlife to pursue.

46. Frontenac, Missouri

This tiny, affluent St. Louis neighborhood has a rural feel and all the things that make a suburb stand out.

47. White Rock, New Mexico

This community of 5,880 in Los Alamos County has a rural vibe, great schools, hiking trails, lots of parks, and home prices in line with the national average.

48. Stone Ridge, Virginia

Good public schools, housing options, and diversity all helped Stone Ridge land the 48th spot on this list of top U.S. suburbs. The Washington, D.C., bedroom community has about 16,600 residents.

49. The Woodlands, Texas

This sounds like a good kind of sprawl, y’all. The Woodlands, a 29,000-acre master-planned home to 118,500 people and over 2,000 businesses, has a natural forest and 140 parks and is linked by more than 220 miles of hiking and biking trails. With top schools, home prices just a bit above the national average, and nightlife, this Houston suburb scores.

50. Berwyn, Pennsylvania

This pricey Philadelphia suburb of just 3,800 residents offers an urban-suburban feel. Most residents own their own homes, and there are charming coffee shops, restaurants, and parks to visit.

Financing a Fresh Start

You might have a fave or two among the best suburbs in the U.S. Is it time to fund the dream for your family and start anew in a place you hadn’t considered?

When you’re ready to look for a mortgage, know that SoFi offers home loans with low rates, low down payments, flexible term options, and a closing time guarantee.

Applying for a home mortgage loan doesn’t have to be complicated. Start by getting a quick, no-obligation rate quote.

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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The best credit cards for food delivery and ride sharing offer a host of benefits, including generous cash-back rewards, free annual memberships, and annual credits on these services. While food delivery and ride sharing credit cards can have some downsides — like high annual fees, in some cases — the positives might outweigh the negatives for those that often order delivery or use ridesharing.

Depending on which type of service you use, the process of claiming your earned rewards can be quick and easy. Often, it’s as simple as linking the eligible credit card to your account.

Recommended: Can You Buy Crypto With a Credit Card

What Are Rewards Credit Cards?

Rewards credit cards offer benefits in exchange for every dollar you spend on the card, typically as cash back, points, or airline miles. You can then redeem the credit card rewards you’ve earned in a variety of ways, such as in the form of a check, a statement credit, travel perks, or gift cards.

While not all rewards credit cards have annual fees, those with higher annual fees tend to offer more generous benefits. Further, rewards credit cards generally have higher annual percentage rates (APR) than more basic credit cards. This makes it all the more important to adhere to the credit card rule of avoiding carrying a balance when possible.

In general, you’ll need a good or excellent credit score (meaning 670+) to qualify for the top rewards credit cards.

Recommended: How to Avoid Interest On a Credit Card

How Do Food Delivery Benefits Work?

The way food delivery benefits typically work is that a credit card provider partners with a popular food delivery service. Then, cardholders receive certain credit card benefits, such as free memberships, higher points accrual when using the service, or statement credits on food deliveries.

Which services are paired with your card and the benefits you receive will depend on the credit card provider. In some cases, rewards include a higher rate of cash-back rewards in more general categories, such as takeout or dining. Check your credit card’s website to see what — if any — food delivery benefits are available to you.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

How Do Ride Sharing Benefits Work?

Ride sharing benefits are fairly similar to food delivery benefits. Credit card providers partner with ride sharing services to provide benefits for certain credit cards they offer. For instance, there are Lyft credit cards and Uber credit cards that offer perks with those ride sharing services.

Those benefits may come in the form of higher point accruals, statement credits, and free subscriptions. Some cards also offer these benefits in the form of more generic travel credits or cash-back rewards, which may apply to ride sharing services.

Pros and Cons of Using Credit Cards for Food Delivery

Using a credit card for food delivery can have its pros and cons, depending on the credit card you’re using and your own spending habits. Here are some of the advantages and drawbacks of food delivery credit cards to consider:

Pros	Cons
Higher rewards rates for food-related spending	Could carry high annual fees, which might not be worthwhile for occasional users
Can cover membership fees for a period of time	May have a higher purchase APR
May offer general dining credits	Can tempt cardholders to spend more on takeout due to card’s benefits

Pros and Cons of Using Credit Cards for Rideshare Expenses

Are you thinking about a ride sharing credit card? Here are some pros and cons to consider for these cards:

Pros	Cons
Higher rewards rates on rideshare spending	Can place limits or deadlines on offers or rewards redemptions
May offer travel credits that can apply to rideshare costs	May have high annual fees
Often provide nice benefits across-the-board, such as travel insurance	Could be limited to earning rewards or credits with a particular service

Activating Your Credit Card Offers

Each credit card is different, but activating your offers shouldn’t be too difficult. In some cases, it’s as simple as signing up for the relevant service and linking your credit card to it.

In other cases, you might have to manually activate offers on the service’s app or website. Usually, if your card includes a free membership, it must be manually activated.

Keep in mind that food delivery and ride sharing credit cards often run promotions, and these do expire. For example, the Chase Sapphire Reserve previously included a Lyft Pink membership, but that offer expired in early 2022. However, this card also includes one free year of DoorDash’s DashPass, which is good until the end of 2024.

Using a Credit Card for Food Delivery

Using a credit card for food delivery is a simple process. The first thing you’ll want to do is to create an account on the app, which should only take a couple of minutes. Likewise, add your credit card if you have not already done so.

If you already have an account, you may want to make your rewards credit card the default payment method to take advantage of discounts and rewards. Also make sure to activate any free memberships that might be available to you.

Then, you can search restaurants on the food delivery app, either using your address or your smartphone’s location. These apps often have food categories to make your search a little bit easier.

Once you find something that sounds good, you can add items to your cart and check out. Since you have already added your rewards credit card, use it as your payment method to take advantage of those rewards. And if you use your credit card frequently, it can help you earn your credit card welcome bonus.

Recommended: When Are Credit Card Payments Due

Using a Credit Card for Ride Sharing

Using a credit card for ride sharing will follow all of the same principles as using one for food delivery. Make sure you add your rewards credit card and activate your membership if one is available.

The biggest difference when using a credit card for ride sharing is the process of booking the ride itself. Generally, you book a ride by specifying the pick-up and drop-off locations; ride sharing apps can usually use your smartphone’s location as the pickup.

The app will then find a driver for you and give you the chance to select or change your payment method. If you have a rewards credit card, make sure it appears as the payment method. If it doesn’t, select it before confirming your ride. Once you do that, you’re all set.

The Takeaway

Food delivery credit cards and ride sharing credit cards can offer a slew of perks, including cash-back rewards, statement credits, and free memberships for a few months or even a year. Credit card owners can take advantage of these rewards when hailing a ride or ordering food through a delivery app.

If you want these perks and more, the cash-back rewards credit card from SoFi is a strong contender. It offers perks for both ride sharing and food delivery through World Elite Mastercard® Benefits. This includes Lyft $5 monthly credits and a three-month free trial of DashPass.

Learn more and apply today for a credit card with SoFi!

FAQ

What is credit card dining?

Credit cards can offer a variety of perks when you spend on dining. That could include high cash-back rates when eating at restaurants or ordering delivery. Other credit cards come with free memberships for delivery apps for a set time period or a statement credit for orders.

Are the best cards for rideshare expenses also the best cards for food delivery?

Some credit cards that are the best for rideshare can also be the best for food delivery. However, some credit cards work well for ridesharing because they are travel credit cards, and this may not carry over to food delivery.

Do rideshares count as travel for credit cards?

It depends on the credit card. Some credit cards consider rideshares as travel and will let you earn a higher cash-back rate when booking a ride, for example. However, you should check the details of your card to be sure, as each card is different.

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Photo credit: iStock/RgStudio

¹See Rewards Details at SoFi.com/card/rewards.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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There’s also a lot of important information in a credit card statement. Specifically, you’ll find details about rates, fees, transactions, payments, and any changes to your card’s rules and regulations. All of the fine print might look overwhelming, but if you spend some time learning how to read your credit card statement, it will become easier to navigate. In fact, you may even find it helpful in understanding how to manage your credit.

Keep in mind that every credit card provider’s statement looks a bit different, though they’ll share some similarities. In other words, your statement might look a bit different from our high-level overview of a credit card statement’s components. Still, this guide can serve as a jumping-off point to better understanding a credit card statement.

How to Read a Credit Card Statement

Below you’ll find an overview of each of the major sections of a credit card statement, as well as what important information you can find there.

Account Summary

This section is an overview of all of the transactions that have taken place on your credit card account during a billing period. Here are some key pieces of information you’ll find in the Account Summary section of your credit card statement:

•   Your name and mailing address: While this is information you already know, it’s important to make sure it appears accurately on your statement.

•   Your account number: The entire account number may appear, or the statement may only list the last four digits.

•   The billing cycle’s dates: You’ll see your credit card statement closing date and the length of your billing cycle, which impact how interest is calculated. The statement will only reflect activity from the current billing cycle. This means your statement may show different numbers than what you see when you look at your account online, which may include transactions that occurred after the credit card statement cycle closed (this is the difference between a credit card statement vs. current balance).

•   The previous balance: This is the previous month’s remaining account balance.

•   The new balance: This figure takes into account all of the activity for that billing cycle. Additional purchases, interest charges, fees, balance transfers, credits, or payments are either added or subtracted to the previous balance to determine this balance. If, for whatever reason, you were credited more than you owe, that would result in a negative balance on a credit card.

•   Your credit limit and available credit: This is where you’ll find your overall credit limit, as well as how much of that remaining limit is available for your use.

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Payment Information

In this section, you’ll find information on what is owed for the billing cycle. If you look at no other section on your credit card statement, you’ll probably want it to be this one. Here’s what you’ll find there:

•   Your new balance: This is how much you’ll owe on this particular statement. If you pay this amount in full, you can typically avoid accumulating interest charges.

•   Minimum payment: This section will include information on your minimum payment for the month. You must pay this amount to avoid late fees and negative reporting to the credit agencies.

•   Payment due date: If you fail to make the minimum monthly payment by your payment due date, you may be charged a late fee. Missing a payment might also trigger a higher penalty annual percentage rate (APR) and potentially negatively impact your credit score.

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Late Payment Warnings

Credit card statements typically have sections that state what happens in the event that a minimum monthly payment is not received by the due date listed. The late payment warning generally includes information on the penalty APR (if applicable) and the late payment fee.

Minimum Payment Warning

The minimum payment warning section explains how long it will take to pay off a credit card balance and how much interest you’ll owe if you make only the minimum payment. While it’s possible to pay off a credit card balance by only making minimum payments, the process can be slower and more costly in the long run when you factor in compound interest.

The minimum payment warning section may include details for an expedited payment schedule, such as three years, or 36 monthly payments. This can serve as a useful comparison if you’re unsure of just how much you’ll save in interest charges by making more than the minimum monthly payment.

Another way to explore interest costs over different repayment periods is by using a credit card interest calculator.

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Rewards Summary

If you carry a rewards credit card, arguably the most fun section to review on a credit card statement can be the rewards summary. Here’s what you can find detailed in this section:

•   Prior rewards balance: This shows your rewards accrual from spending in prior billing cycles.

•   Rewards earned this period: This shows how many points or miles were accumulated over the most recent billing period through using a credit card.

•   Rewards redeemed: This will show the amount of rewards you’ve redeemed that statement period, if any.

•   Rewards available for redemption: This portion details how many points or miles you’re currently able to redeem, whether for cash or travel.

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Credit Counseling Notice

Your credit card statement may include information for nonprofit credit counseling. If you’re having a difficult time managing your credit, you might consider using this resource. These programs are typically long-term solutions, however, and may not be able to help if you’re in immediate risk of missing a payment.

If you are unable to make a payment, call your credit card company and ask about your options. Credit card companies may have ways to help.

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Notice of Changes to Interest Rates and Other Changes

If an action on your account triggers some sort of change to the account, there is usually a section dedicated to explaining this change (or potential change). For example, if a missed payment triggers the penalty APR rate, you must be notified of the change.

Similarly, if there are any other major changes to your account, rates, or fees, you may find more details in this section.

Recommended: How to Avoid Interest On a Credit Card

Transaction Charges

This section is a list of all of the transactions that occurred during a billing cycle, including:

•   Purchases

•   Returns

•   Any other activity that would affect the running balance on a credit card

Additionally, each transaction typically includes the following information:

•   The vendor

•   The date the transaction was made

•   The date the transaction was posted to the account

•   The dollar amount of the transaction

Note that this section will only include information from the transaction period. Transactions that happened after the billing cycle will be included in the next period’s statement.

You may want to consider making a regular habit of checking your transactions each month to look for any errors or potentially fraudulent activity. If something looks suspicious, report the activity to your credit card company.

Fees and Interest Charges

Credit card statements typically have a section dedicated to fees and interest charges. In this section, you may find the following:

•   Interest charges by type of transaction: You may be charged a different interest rate for purchases than for balance transfers or cash advances, for instance. This section will break down the APR for each transaction type.

•   Interest charge calculations: In this section, you’ll be provided with the calculation for how interest was charged on each type of transaction.

•   Year-to-date total of all fees and interest: Credit card statements may also include a total of all fees and interest charged for the current year.

The Takeaway

As you can see, your credit card statement contains a wealth of information. Learning how to read a credit card statement can ensure you have all of the details you need to be an informed cardholder. Plus, understanding a credit card statement can help you learn how to better manage your credit and take advantage of all that your card has to offer.

Perhaps one of the most exciting credit card statement sections to review is the rewards summary — but you need a rewards credit card for that to be included. If you’re looking to earn rewards through your everyday spending, consider a cash-back rewards card like the SoFi credit card.

Enjoy unlimited cash back rewards with fewer restrictions.

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¹See Rewards Details at SoFi.com/card/rewards.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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When debt accumulates on a high-interest card, interest starts to add up as well, making it harder to pay off the total debt — which, in turn, can become a credit card debt spiral. If you end up with mounting debt on a high-interest credit card, a balance transfer is one possible way to get out from under the interest payments.

A balance transfer credit card allows you to transfer your existing credit card debt to a card that temporarily offers a lower interest rate, or even no interest. This can provide an opportunity to start paying down your debt and get out of the red zone. But before you make a balance transfer, it’s important that you fully understand what a balance transfer credit card is and have carefully read the fine print.

How Balance Transfers Work


The basics of balance transfer credit cards are fairly straightforward: First, you must open a new lower-interest or no-interest credit card. Then, you’ll transfer your credit card balance from the high-interest card to the new card. Once the transfer goes through, you’ll start paying down the balance on your new card.

Generally, when selecting to do a balance transfer to a new credit card, consumers will apply for a card that offers a lower interest rate than they currently have, or a card with an introductory 0% annual percentage rate (APR). Generally, you need a solid credit history to qualify for a balance transfer credit card.

This introductory period on a balance transfer credit card can last anywhere from six to 21 months, with the exact length varying by lender. By opening a new card that temporarily charges no interest, and then transferring your high-interest credit card debt to that card, you can save money because your balance temporarily will not accrue interest charges as you pay it down.

But you need to hear one crucial warning: After the introductory interest-free or low-APR period ends, the interest rate generally jumps up. That means if you don’t pay your balance off during the introductory period, it will start to accrue interest charges again, and your balance will grow.

Recommended: How to Avoid Interest On a Credit Card

What to Look For in a Balance Transfer Card


There are a number of different balance transfer credit cards out there. They vary in terms of the length of no-interest introductory periods, credit limits, rewards, transfer fees, and APRs after the introductory period. You’ll want to shop around to see which card makes sense for you.

When researching balance transfer credit cards, try to find a card that offers a 0% introductory APR for balance transfers. Ideally, the promotional period will be on the longer side to give you more breathing room to pay off your debts before the standard APR kicks in — one of the key credit card rules to follow with a balance transfer card.

You’ll also want to keep in mind fees when comparing your options. Balance transfer fees can seriously eat into your savings, so see if you qualify for any cards with $0 balance transfer fees. If that’s not available, at least do the math to ensure your savings on interest will offset the fees you pay. Also watch out for annual fees.

Last but certainly not least, you’ll want to take the time to read the fine print and fully understand how a credit card works before moving forward. Sometimes, the 0% clause only applies when you’re purchasing something new, not when transferring balances. Plus, if you make a late payment, your promotional rate could get instantly revoked — perhaps raising your rate to a higher penalty APR.

Should I Do a Balance Transfer?

Sometimes, transferring your outstanding credit card balances to a no-interest or low-interest card makes good sense. For example, let’s say that you know you’re getting a bonus or tax refund soon, so you feel confident that you can pay off that debt within the introductory period on a balance transfer credit card.

Or, maybe you know that you need to use a credit card to cover a larger purchase or repair, but you’ve included those payments in your budget in a way that should ensure you can pay off that debt within the no-interest period on your balance transfer card. Again, depending upon the card terms and your personal goals, this move could prove to be logical and budget-savvy.

Having said that, plans don’t always work out as anticipated. Bonuses and refund checks can get delayed, and unexpected expenses can throw off your budget. If that happens, and you don’t pay off your outstanding balance on the balance transfer card within the introductory period, the credit card will shift to its regular interest rate, which could be even higher than the credit card you transferred from in the first place.

Plus, most balance transfer credit cards charge a balance transfer fee, typically around 3% — and sometimes as high as 5%. This can add up if you’re transferring a large amount of debt. Be sure to do the math on how much you’d be saving in interest payments compared to how much the balance transfer fee will cost.

Recommended: When Are Credit Card Payments Due

Balance Transfer Card vs Debt Consolidation Loan

Both a personal loan and a balance transfer credit card essentially help you pay off existing credit card debt by consolidating what you owe into one place — ideally at a better interest rate. The difference comes in how each works and how much you’ll ultimately end up paying (and saving).

A debt consolidation loan is an unsecured personal loan that allows you to consolidate a wider range of existing personal debt, including credit card debt and other types of debt. Basically, you use the personal loan to pay off your credit cards, and then you just have to pay back your personal loan in monthly installments.

Personal loans will have one monthly payment. Plus, they offer fixed interest rates and fixed terms (usually anywhere from one to seven years depending on the lender), which means they have a predetermined payoff date. Credit cards, on the other hand, typically come with variable rates, which can fluctuate based on a variety of factors.

Just like balance transfer fees with a credit card, you’ll want to look out for fees with personal loans, too. Personal loans can come with origination fees and prepayment penalties, so it’s a good idea to do your research.

How to Make a Balance Transfer

If, after weighing the pros and cons and considering your other options, you decide a balance transfer credit card is the right approach for you, here’s how you can go about initiating a balance transfer. Keep in mind that you’ll need to have applied for and gotten approved for the card before taking this step.

Balance-Transfer Checks


In some cases, your new card issuer will provide you with balance-transfer checks in order to request a transfer. You’ll need to make the check out to the credit card company you’d like to pay (i.e., your old card). Information that you’ll need to provide includes your account information and the amount of the debt, which you can determine by checking your credit card balance.

Online or Phone Transfers

Another way to initiate a balance transfer is to contact the new credit card company to which you’re transferring the balance either online or over the phone. You’ll need to provide your account information and specify the amount you’d like to transfer to the card. The credit card company will then handle transferring the funds to pay off the old account.

The Takeaway

Whether you should consider a balance transfer credit card largely depends on whether the math checks out. If you can secure a better interest rate, feel confident you can pay off the balance before the promotional period ends, and have checked that the balance transfer fees won’t cancel out your savings, then it may be worth it to make a balance transfer.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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