Yes, you can use a balance transfer to pay off your home equity loan. Transferring your home equity line of credit (HELOC) balance to a 0% APR credit card can save you thousands of dollars in interest.
How a Balance Transfer Works?
A balance transfer allows you to move debt from one credit card or loan to another credit card. Many credit card companies offer 0% introductory annual percentage rates (APRs) on balance transfers for a set period, usually between 12-21 months.
If you transfer your HELOC balance to a card with a 0% intro APR and pay off the entire balance before the intro period ends, you can avoid paying interest on your home equity loan. This can result in major interest savings.
How to Find the Right Card for a HELOC Balance Transfer?
When looking for a balance transfer credit card, you’ll want to find one that:
- Has a 0% intro APR for over 12 to 18 months
- Does not charge a balance transfer fee
- Has a high enough credit limit to accommodate your HELOC balance
Here are some of the best balance transfer credit cards to consider for paying off your HELOC:
Notable Balance Transfer Credit Cards
| Card | Key Features |
|---|---|
| Citi Simplicity® Card | 0% Intro APR for 21 months with no late fees ever |
| Wells Fargo Reflect® Card | 0% Intro APR for 18 months |
| Fifth Third 1% Cash/Back Card | Earn 1% cash back and get 0% intro APR for 15 billing cycles |
| Citi Double Cash® Card | Earn 2% cash back (1% when you buy and 1% when you pay) |
Be sure to compare balance transfer fees and introductory APR time periods across multiple cards to find the best option.
Pay Off the Full Balance Within the Intro Period
Once you’ve transferred your HELOC balance to a 0% APR credit card, be sure to pay off the entire amount before the introductory period expires. After the intro period, any remaining balance will be charged interest at the card’s regular APR.
Aim to pay more than the minimum payment each month. Calculate the monthly payment amount needed to pay the balance in full before intro APR ends. Automate payments or set calendar reminders to help you stay on track.
