rate increaseUpdated: Sept. 19, 2017

During today’s Federal Open Market Committee meeting, the Fed decided to increase the short-term interest rate by 0.25%. This is the third time since December that we’ve seen an increase in interest rates. While you may be thinking a slight rate hike won’t impact you, you’re mistaken, as there are several ways that a rate increase impacts consumers. One aspect of your financial life that will be impacted relatively soon is your credit card, especially if you’re carrying a balance. Keep reading to learn how your credit card will be impacted, and find out what you can do to rid yourself of your credit card’s new higher interest rates.

How the rate hike impacts your credit card

Since most credit cards have variable interest rates, which means the rate can change at any time, it means cardholders can expect to pay more interest very soon. Although this doesn’t impact cardholders who pay off their balance every month, those who are carrying a balance on their credit card are about to pay more in interest, which means it will cost them more money and potentially take more time to pay off the card. If you’re someone with a credit card balance that can’t be paid off right now, you should know that there’s some good news: you can avoid your credit card’s high interest rates by transferring your balance a card that offers a long 0% intro APR on balance transfers. Not sure which cards are worth their salt? We’ve listed the best balance transfer credit cards below.

These credit cards can help you avoid paying interest

If you want to avoid paying more interest to your current credit card issuer, these are the cards that you’ll want to consider.

BankAmericard Credit Card

rate increaseCombining a long 0% intro APR with a $0 balance transfer fee opportunity is the BankAmericard Credit Card. This card offers a 15-month 0% intro APR on balance transfers made in the first 60 days of account opening, and transfers completed within that same 60-day period will have a $0 intro balance transfer fee (after that, the balance transfer fee is $10 or 3%, whichever is greater). The BankAmericard Credit Card also offers a 15-month 0% intro APR on purchases. What’s more, this card has no annual fee and no penalty APR, which means paying late won’t raise your APR.

Citi Simplicity Card – No Late Fees Ever

rate increaseWant to avoid credit card interest for over a year and a half? The Citi Simplicity Card – No Late Fees Ever (a NextAdvisor advertiser) makes it possible with its 21-month 0% intro APR on purchases and balance transfers. Although you’ll pay a balance transfer fee of $5 or 3% of the transfer, whichever is greater, you will get 21 months of no interest, which is likely ample time to pay off your balance. The Citi Simplicity Card – No Late Fees Ever also features, as you probably guessed by the name, no late fees, no penalty APR and no annual fee. On top of that, cardholders are able to set up their own payment schedule, so they can align your bill with their paycheck to make things easy. Are you a frequent traveler who wants 24/7 access to a Citi Concierge to help you book flights, hotels and other travel plans? If so, you may want to check out the Citi Diamond Preferred Card because it offer exactly that and features the same 21-month 0% intro APR opportunity.

Discover it – 18 Month Balance Transfer Offer

rate increaseThose who have less-than-perfect credit will want to check out the Discover it – 18 Month Balance Transfer Offer. That’s because this card is the only card on this list that’s available to those with average to excellent credit (usually a score of 670 and above). It’s also the only card on this list that offers cash back rewards, which means it’s a card that you’ll likely want in your wallet long after your balance transfer is paid off. Kicking off the rewards is an 18-month 0% intro APR on balance transfers and a 6-month 0% intro APR on purchases. You’ll be charged a balance transfer fee of 3% of the transfer, but this one-time fee is likely a lot cheaper than the ongoing interest you’re paying on your current credit card. In terms of cash back rewards, you’ll earn 5% cash back in categories that rotate quarterly, like gas stations, Amazon.com, restaurants, wholesale clubs and more, (up to the quarterly maximum, currently $1,500, then it’s 1% back) and 1% on all other purchases. From July through September of 2017, you’ll earn 5% back at restaurants, then from October through December, you’ll earn 5% back at Amazon.com and more. Even though you have to activate the 5% every quarter to earn it, Discover makes things easy by reminding you through its online portal and via email. What’s more, Discover will match all of the cash back you’ve earned at the end of your first year. This means if you’ve earned $500 in your first year as a cardholder, Discover will match that and give you a total of $1,000 back! Rounding out Discover it – 18 Month Balance Transfer Offer are no foreign transaction fees — perfect for those who travel overseas — and no annual fee.

Visit our reviews of the best balance transfer credit cards to learn more about these cards, and use our free Balance Transfer Calculator to see which card is best for your balance, monthly payment and credit scores. Want to stay on top of personal finance-related news? Follow our news blog to stay in the know.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but card terms and conditions may change at any time. This site may be compensated through the credit card issuer Affiliate Program.