When you’re in debt, the two best ways to pay off the balances are debt consolidation and 0% balance transfers. If you can pay off the balances within 1 to 2 years, you’re better off with a credit card balance transfer.
Capital One has several credit cards, including the popular Quicksilver cashback card, with 0% APR balance transfer rates offering up to 15 months of no interest while you pay down your debt.
Which Debt Payoff Method Is Best?
When you’re in debt, it can affect all facets of your life. Higher levels of debt can lower your credit score, increase your stress, and keep you from getting approved for the most important loans in your life, such as a mortgage.
There are three ways to pay off debt—keep paying as much as you can to lower the balances, obtain a debt consolidation loan or transfer the balances to a zero interest rate credit card.
Debt consolidation loans are good because they will lower your credit card interest rate. They also force you to pay down the loan balance over a specific timeframe because the minimum payment required is a mix of both principal and interest.
Balance transfers are the ideal solution because your interest rate is lowered to zero, which means every dollar that you pay is going to reduce your balance. And you’re not locked into a large payment so you have the flexibility to have a smaller payment in case of an emergency.
Who Should Consider a Balance Transfer?
The people who should consider a balance transfer to pay off their debt are those who will continue to pay down their debt, even though the minimum payment required may be small. The goal is to take advantage of this interest-free time period and accelerate the debt payoff by eliminating interest payments during the grace period.
Because you will be using a credit card for the 0% balance transfer, you must also be able to show restraint and not use the credit card for purchases. While some credit cards extend the interest-free offer to purchases, most will charge interest on new purchases.
What Are the Capital One Balance Transfer Offers?
Capital One offers several balance transfer options with 0% APR available up to 15 months.
There are two things I really like about the 0% APR Capital One balance transfer cards. First, they both have great ongoing rewards for spending on the cards, so you can keep them for everyday spend after you’ve paid off your debt.
Second, each of the Capital One Balance Transfer offers also comes with a cash sign-up bonus to help you accelerate your debt payoff.
Capital One Quicksilver Rewards
The Capital One Quicksilver Rewards credit card offers 1.5% cash back on daily spend with no annual fee, making it a worthy card to keep for years and use as a primary card for daily spending.
Capital One® Quicksilver® Cash Rewards
- % Earn unlimited 1.5% cash back on every purchase, every day
- One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases for 15 months; 14.74%-24.74% variable APR after that
- 0% intro APR on balance transfers for 15 months; 14.74%-24.74% variable APR after that; 3% fee on the amounts transferred within the first 15 months
- Pay no annual fee or foreign transaction fees
This card actually offers two 0% balance transfer options for you to choose from.
The first option from Capital One provides a grace period of 15 months of 0% interest for balance transfers. The same 0% is also extended to any purchases that you make on the card during the first 15 months. You will receive a $150 bonus if you spend $500 within the first 3 months of card opening.
The second option offers only 9 months of 0% interest on balance transfers and purchases in exchange for increasing the sign-up bonus. The sign-up bonus is $200 when you spend at least $1,000 within the first 3 months.
For both Capital One balance transfer options, there is a 3% balance transfer fee and the interest rate will reset to 14.74% to 24.74% (based on credit) once the introductory 0% rate expires.
You may hesitate to pay a fee, but there are very few cards that allow for completely free balance transfers. A 3% charge is the standard rate, and you’ll still save hundreds of dollars thanks to the interest-free financing.
Capital One SavorOne Dining Rewards
The Capital One SavorOne Dining Rewards card also offers a 0% rate on balance transfers and purchases for the first 15 months with no annual fee.
Capital One® SavorOne℠ Cash Rewards Credit Card
- + Earn unlimited 3% cash back on dining and entertainment
- + 2% at grocery stores
- + and 1% on all other purchases
- Earn a one-time $150 cash bonus after you spend $500 on purchases within the first 3 months from account opening
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases for 15 months; 14.74% - 24.74% variable APR after that
- 0% intro APR on balance transfers for 15 months; 14.74% - 24.74% variable APR after that; 3% fee on the amounts transferred within the first 15 months
- No foreign transaction fees
- + No annual fee
This credit card is geared toward people who spend more on dining and groceries because it offers 3x cash back on dining and 2x on groceries, while earning 1x on everything else.
The Capital One balance transfer fee is the same at 3%, but the interest rate is a little higher, ranging from 16.24% to 24.99% once the introductory rate expires.
Capital One Cards Offering 0% APR on New Purchases
Capital One also offers some cards that do not charge interest on new purchases as an introductory offer.
One of my friends used a zero interest purchase offer on some much-needed repairs for her home. She was otherwise debt-free but didn’t want to deplete her emergency cash reserves to replace her furnace. Instead, she applied for a new credit card that offered 0% APR on new purchases, then focused on paying it offer before the introductory offer expired.
Capital One VentureOne Rewards
The Capital One VentureOne Rewards card is a no-annual-fee credit card that earns 1.25 miles for every $1 you spend. You’ll receive a 20,000 mile bonus, which is good for $200 in travel, after spending $1,000 in the first 3 months of card opening. You won’t receive a 0% balance transfer option with this card, but all purchases are interest free for the first 12 months.
VentureOne® from Capital One®
- + Earn 1.25X miles on every purchase, every day and pay no annual fee. Plus earn 10X miles on thousands of hotels; learn more at hotels.com/venture
- + Miles won't expire for the life of the account and there's no limit to how many you can earn
- Enjoy a one-time bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening, equal to $200 in travel
- Enjoy a low intro APR on purchases for 12 months; 13.74%-23.74% variable APR after that
- Travel when you want with no blackout dates
- Fly any airline, stay at any hotel, anytime
- No Foreign Transaction Fee
Capital One Spark Miles Select
The Capital One Spark Miles Select card is designed for business owners. It earns an unlimited 1.5 miles per $1 spent and employee cards can be added at no charge to maximize your earnings. After you spend $3,000 in the first 3 months, you’ll receive 20,000 points, which is enough for $200 in travel.
The Spark Miles Select has no-annual-fee and doesn’t charge interest on purchases for the first 9 months after opening. This interest-free period will allow growing businesses to invest in their business to create opportunity for future success.
Capital One® Spark® Miles Business Credit Card
- 2x Earn 2 miles per $1 on every purchase, every day
- Plus, a one-time bonus of 50,000 miles once you spend $4,500 on purchases within 3 months from account opening
- Miles won't expire for the life of the account, and there are no categories to limit where or what you buy
- $0 intro annual fee for the first year; $95 after that
- There's no limit to the amount of miles you can earn
- + Redeem miles for travel, cash back, gift cards and more
Capital One Spark Cash Select
The Capital One Spark Cash Select comes with the exact same sign-up bonus, 1.5% earn on spend and 0% offer on purchases as the Spark Miles Select. However, instead of travel credits, you’ll be earning cash back. If I had to choose a business credit card between the two, I would choose the Spark Cash Select because cash back offers more flexibility than travel credits, all else being equal.
Capital One® Spark® Cash for Business
- % Earning unlimited 2% cash back could mean thousands of dollars each year going back into your business
- Plus, a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening
- Use Spark Cash across all your business spend, with no categories to limit your purchasing
- $0 intro annual fee for the first year; $95 after that
- Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
- + Get employee cards at no additional cost, and earn rewards from their business spend
How to Use the Sign-Up Bonus to Your Best Advantage
My approach would be to apply for whichever card works best for you, then spend the $500 to $1,000 minimum required to get the bonus right away. Pay off the credit card immediately before the statement closes.
Then transfer your high-interest balances to your new Capital One card to take advantage of the 0% balance transfer interest rate. When the sign-up bonus posts to your account, use that amount to pay off the 3% balance transfer fee and whatever is remaining to reduce your debt.
How to Do a Capital One Balance Transfer
Once you get the card you want, it’s time to complete the Capital One balance transfer. Thankfully, it’s pretty easy.
Just log in to your account, click More Account Services and select Transfer a Balance. Select the intro offer from the list and fill in the required info. You’ll need to know the name of the bank you’re transferring from, the account number and the amount of the balance.
Remember that you need to keep your account in good standing by staying within your credit limit and making all minimum payments on time to ensure that you don’t lose your 0% interest rate before the promo expires.
Considering how much my family spends on dining and groceries, I would pick the Capital One Savor Dining Rewards over all of the other options. With no annual fee and 15 months of 0% interest on balance transfers, it is the best of both worlds—a card that will help you eliminate your debt then provide robust rewards for everyday spend.