BankAmericard Credit Card: Improve Your Credit Score by Paying Off Debt (2024)

The BankAmericard® credit card* lets new cardholders avoid paying interest charges on the balance of another credit card by transferring it to the BankAmericard.

This card features a solid introductory interest rates for new purchases andbalance transfersalike, so you can also use it to finance large or emergency expenses without breaking the bank. You won’t earn rewards on any purchases, though. As such, it’s a good card to pair with arewards credit cardin order to earn a return on your spending.

If you do need to utilize a balance transfer to helpmitigate credit card debt, just be aware you’ll need to pay a balance transfer fee to do so. The BankAmericard has an introductory balance transfer fee of 3% of the amount of each transaction for 60 days from account opening (then 4%), which is the industry average among balance transfer cards. You’ll also have to make any balance transfers within 60 days to qualify for the introductory interest offer.

Introductory APR on balance transfers

The BankAmericard balance transfer offer can help you lessen the weight you might be feeling beneath mounting credit card debt.

Cardholders will have the chance totransfer a balance from a high-interest credit cardand pay it down at 0% introductory interest for 18 billing cycles (then 16.24% to 26.24% variable).

18 billing cycles is essentially 18 months, so you’ll have a respectable chunk of time to get the balance down to zero. It’s on par with many of its competitors, with a few exceptions that provide 21 months.

Again, just keep in mind that you’ll need to make any balance transfers during the first 60 days of account opening in order to qualify for the introductory offer.

Once you’ve transferred over a balance, it’s a good idea topay more than the minimum each monthto ensure you can pay the balance down in time. To figure out how much you should pay each month, divide the transferred balance by the number of months (or billing cycles) you have to pay it down.

For example, if you transferred a balance of $5,000 to the BankAmericard, you would need to pay about $278 (5,000/18) monthly to get the balance down in time. However, consider paying even more than that each month, if your finances allow, to really be sure you can get the balance paid off before the standard APR takes effect.

Keep in mind that once you transfer a balance and begin to pay it off, making new purchases on the card will still cause your statement balance to go up. So, if you do plan to use the BankAmericard for new purchases following a balance transfer, just remember you’ll need to calculate any new balances into your monthly payments.

Why use a balance transfer?

A balance transfer is a good way to get rid of credit card debt quickly and avoid interest charges by doing so.

You can pay your balance down faster by applying any cash you would’ve normally used for interest charges toward the transferred balance. Your bank account -- and your credit score -- will thank you in the long run.

Lowering your credit utilization (the percentage of your overall credit you’re using) will have a positive impact on your credit score. Basically, by lowering your credit card debt, you’ll also lower your credit utilization, and your credit score will be all the better for it.

Is paying the balance transfer fee worth it?

The short answer is yes. Paying a balance transfer fee will typically be less expensive than paying interest charges on a credit card balance in the long run.

For example, a $5,000 balance on another credit card accruing interest at an APR of 21% (nearly the national 2022 average according toLendingTree), with a 2% minimum payment, would take over70 yearsto pay off, and cost you $30,797.92 in interest charges. That means that after seven decades of just paying the minimum monthly payment,you’d have spent over $30,000.

Paying a one-time balance transfer fee (in this case, a 3% introductory balance transfer fee) for a balance of $5,000 will be dramatically less. 3% of $5,000 is a measly $150. Spending a total of $5,150 over 18 billing cycles (a year and a half) is far more attractive than paying $30,000 over 70 years.

Introductory APR on purchases

In addition to an introductory offer for balance transfers, the BankAmericard offers cardholders an intro 0% APR offer for new purchases for 18 billing cycles (then 16.24% to 26.24% variable). That means you can make any planned, large purchase and pay it down without accruing interest.

However, this would somewhat complicate using the card for a balance transfer, as it would take longer to pay down a transferred balance if you’re regularly adding to it. The BankAmericard also doesn’t feature any rewards, which means you’d miss out on any kind of return on your spending.

Other card perks

Outside of its two introductory offer periods, the BankAmericard doesn’t have much to offer its cardholders. There are no rewards or impressive perks, so if you’re looking for a credit card to use for something other than a balance transfer, consider looking elsewhere.

That said, it does offer cardholders the ability to monitor their FICO credit score from their TransUnion credit reports, as well as your standard fraud and overdraft protections. But once the card’s introductory APR promotions end, it doesn’t have much use.

Alternative cards

While the BankAmericard is a good choice for a balance transfer credit card, it’s not the only option available.

Citi Simplicity® Card*

Similar to the BankAmericard, the Citi Simplicity’s primary function is to act as temporary relief from high-interest credit cards. Cardholders will have 21 months to pay down a balance at 0% introductory interest (then 19.24% to 29.99% variable APR). Balance transfers must be completed within four months of account opening. The card also offers a 0% introductory APR on purchases for 12 months (then 19.24% to 29.99% variable APR).

The Citi Simplicity offers an introductory balance transfer fee -- 3% with a $5 minimum -- for the first four months. Then it’ll jump up to 5% ($5 minimum). If you’re looking for more time to pay down a transferred balance, this is as good as it gets.

For more information, see our full review of theCiti Simplicity.

U.S. Bank Visa® Platinum Card

The U.S. Bank Visa Platinum Card is another good balance transfer card you could choose. Cardholders will get 21 billing cycles to pay down a balance transfer and purchases at 0% introductory interest before the standard variable APR of 18.74% to 29.74% applies. You’ll need to make any balance transfers within 60 days of account opening and pay a 3% ($5 minimum) balance transfer fee.

You won’t get any rewards, but unlike the BankAmericard, cardholders can get up to $1,200 in annual coverage against damage or theft for their cell phone, so long as they pay their phone bill with the Platinum Card.

You can read more about theU.S. Bank Visa Platinum Cardfor additional information.

FAQs

*All information about the BankAmericard credit card and the Citi Simplicity Card has been collected independently by CNET and has not been reviewed by the issuer.

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