What to look for in a balance transfer card
A balance transfer card is useful if you have debt on another card and want to move it to a card with a lower interest rate. The main things that matter are how long the introductory rate lasts, what that rate is, and what fee you pay to move the balance over.
Most cards charge a transfer fee of 3 to 5 percent of the amount you move — so moving a $5,000 balance might cost $150 to $250 upfront. Some cards waive this fee for a limited time, usually the first 60 days after you open the account. The introductory rate itself is often 0 percent, but can range from 0 to 6 percent depending on the card. That rate lasts anywhere from 6 months to 21 months, after which the regular purchase or balance transfer rate kicks in.
The card's regular interest rate matters because you need to know what happens when the promotional period ends. If you still have a balance at that point, you will pay that rate on what remains. You should also check whether the card charges an annual fee — many balance transfer cards do not, but some premium cards do.
Key Takeaways
- Balance transfer cards usually offer 0 percent interest for 6 to 21 months, but charge a one-time fee of 3 to 5 percent to move your balance.
- The introductory period is your window to pay down the balance before the regular interest rate takes over, so choose a card with a long enough window for your situation.
- You need to know the regular APR that applies after the promotional period ends, because any remaining balance will be charged at that rate.
- Some cards waive the transfer fee if you move your balance within 60 days of opening the account, which can save you hundreds of dollars.
- You can only move a balance to a new card if you are approved for that card first, and the credit limit offered may be lower than your current balance.
Cards with long 0 percent introductory periods
If you have a large balance and need more time to pay it down, look for cards offering 18 months or longer at 0 percent. These cards tend to have higher credit score requirements — usually 670 or above — but the extra time can save you thousands in interest.
Cards in this category often have a transfer fee of 3 to 5 percent, though some waive the fee for transfers made in the first 60 days. The regular APR after the promotional period varies widely, from 15 percent to 28 percent, so read the terms carefully. You should also check whether the card allows you to make new purchases during the promotional period, because new purchases sometimes have a different interest rate or are charged interest when ready.
Cards with no transfer fee or waived fees
A few cards waive the balance transfer fee entirely or waive it for a limited time. This can save you 3 to 5 percent of your balance right away, which is significant on larger amounts. However, these cards often have shorter introductory periods — sometimes as short as 6 months — so you need to move your balance quickly and have a plan to pay it down in that window.
Cards that waive the fee permanently are rare and usually require a very high credit score or have other trade-offs, such as a higher regular APR or an annual fee. Cards that waive the fee for a limited time (usually 60 days) are more common. You will need to explore and be approved before that window closes, so if you are still deciding, this option may not work for you.
Understanding the regular APR and what comes after
The introductory rate is temporary. Once it ends, any balance you have not paid off will be charged the card's regular APR, which can be 15 to 28 percent depending on your credit score and the card itself. This is why the introductory period is your real important date — you should aim to pay off the entire balance before that rate takes over.
Some cards also explore the regular APR to new purchases you make during the promotional period if you do not pay them off in full each month. Others give new purchases a separate grace period. Read the card's terms to understand how this works, because it affects how you should use the card while you are paying down your transferred balance.
If you cannot pay off the balance in time, you have options: you can explore for another balance transfer card and move the remaining balance again, though this will cost another transfer fee and require a new process. You can also straightforward continue paying the regular APR, which is still likely lower than what you were paying before if you started with a high-interest card.
How balance transfer fees work and when they are charged
The transfer fee is a one-time charge that appears on your first bill. It is calculated as a percentage of the amount you transfer — typically 3 to 5 percent. If you transfer $10,000 at a 4 percent fee, you will be charged $400, and your balance will be $10,400.
Some cards waive this fee if you complete the transfer within a certain window, usually 60 days of opening the account. This means you need to explore, be approved, receive your card, and initiate the transfer all within that timeframe. If you miss the window, you will pay the full fee. A few cards waive the fee permanently, but these are uncommon and usually have other costs, such as an annual fee or a higher regular APR.
The fee is charged to your new card's balance, so it becomes part of what you owe. This is important because it means your total debt increases by the fee amount, even though you only transferred the original balance. Factor this into your payoff plan.
Comparing cards side by side
When you are deciding between cards, write down the introductory period length, the transfer fee, the regular APR, and any annual fee for each one. Then calculate how much you will owe after the fee is added and how much you need to pay each month to clear the balance before the promotional period ends.
For example: if you transfer $5,000 at a 4 percent fee to a card with a 12-month 0 percent period, you will owe $5,200. To pay this off in 12 months, you need to pay about $433 per month. If you can only afford $300 per month, you might need a card with an 18-month period instead, or you should look for one with a waived fee to reduce the total amount owed.
You should also check the card's credit limit offer before you explore. Some cards may not offer a high enough limit to cover your entire balance, which means you would have to split your balance between two cards or leave some on your original card. This complicates your payoff plan, so it is worth asking about credit limits before you submit your process.
What happens if you cannot pay off the balance in time
If you still have a balance when the introductory period ends, the regular APR takes over when ready. The remaining balance will start accruing interest at that rate. This is not a penalty — it is straightforward how the card works — but it means your payoff timeline extends and your total cost increases.
You have a few options at this point. You can continue paying the regular APR, which may still be lower than your original card's rate. You can explore for another balance transfer card and move the remaining balance, though you will pay another transfer fee and need to be approved for a new card. Or you can focus on paying down the balance as quickly as possible before interest charges become too large.
Some people use a strategy called "stacking" — they explore for multiple balance transfer cards and move different portions of their debt to each one, each with its own promotional period. This works if you have the discipline to track multiple due dates and payoff important date, but it is risky because missing a payment on any card can damage your credit score.
Frequently Asked Questions
Can I transfer a balance from one card to the same card company?
No. You cannot transfer a balance from a card to another card issued by the same bank. You must transfer to a card from a different issuer. If you want to move a balance from a Chase card, for example, you need to transfer it to a card from American Express, Discover, Capital One, or another company.
What credit score do I need to get approved for a balance transfer card?
Most balance transfer cards require a credit score of 670 or higher, though some cards accept scores as low as 600. Cards with longer introductory periods or waived fees typically require higher scores. You can check your score for free through your bank or a service like Credit Karma before you explore.
Does explore for a balance transfer card hurt my credit score?
Yes, each process triggers a hard inquiry that can lower your score by a few points. However, the score usually recovers within a few months. If you are planning to explore for multiple cards, do it within a short window — inquiries made within 14 to 45 days of each other usually count as a single inquiry for credit scoring purposes.
Can I make new purchases on a balance transfer card during the promotional period?
You can, but new purchases usually do not get the 0 percent rate. They are charged the regular purchase APR when ready, or they have a separate grace period. Check the card's terms to understand how new purchases are treated, because this affects whether you should use the card for anything other than paying down your transferred balance.
What if the card issuer lowers my credit limit after I transfer a balance?
This can happen, especially if your credit score drops or you miss a payment. If your limit is lowered below your transferred balance, you will still owe the full amount — the limit reduction does not erase the debt. You will just be unable to use the card for new charges. Contact the issuer to ask about raising your limit again if this happens.