The basic process: what happens when you move a balance
A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You request the transfer from the new card's issuer, they contact your old card issuer, and the new issuer pays off part or all of your old balance. You then owe the new card issuer instead of the old one. The whole process typically takes 5 to 14 business days, though the new card issuer may charge a one-time fee — usually 3% to 5% of the amount transferred.
The main reason people do this is to pause or reduce interest charges. If your old card charges 22% annual interest and your new card offers 0% for 12 months, you save money on interest during that promotional period — but only if you stop using the old card and pay down the balance before the promotional rate ends.
Key Takeaways
- You initiate a balance transfer through the new card issuer's website, app, or phone line, not through your old card company.
- The new card issuer will ask for your old card number, the amount you want to transfer, and your old card issuer's contact details.
- Balance transfer fees (typically 3% to 5% of the amount moved) are added to your new card balance, so factor this into whether the transfer saves you money.
- The transfer takes 5 to 14 business days to complete, and you should keep making minimum payments on your old card until the transfer shows as complete.
- After the transfer, the promotional 0% rate applies only to the transferred balance, not to new purchases you make on the new card.
Step 1: Choose a new card with a balance transfer offer
Look for a card that offers a 0% introductory rate on balance transfers. This rate period varies — some cards offer 6 months, others 18 months or longer. The longer the promotional period, the more time you have to pay down the balance without interest charges.
Check the card's balance transfer fee before you explore. A card with a 0% rate for 12 months but a 5% transfer fee may cost you less than a card with 18 months at 0% but a 3% fee, depending on how much you transfer and how quickly you can pay it down. Do the math: if you transfer $5,000 at 5%, you pay $250 upfront. If you transfer at 3%, you pay $150. The difference matters.
Also note the regular interest rate (called the purchase APR) that kicks in after the promotional period ends. This is what you'll pay if any balance remains when the 0% period expires.
Step 2: Gather your old card information
Before you start the transfer, have your old credit card in front of you. You'll need the full card number, the expiration date, and the name of the issuer (Chase, Capital One, Discover, etc.). You may also need your old card's customer service phone number, though most new card issuers can look this up themselves.
If you've already closed the old card or lost it, you can still do a transfer — call the old card issuer and ask for the account number. The transfer doesn't require the physical card to exist.
Step 3: Start the transfer through your new card issuer
Log into your new card's online account or mobile app. Look for a section labeled "Balance Transfer," "Transfers," or "Move Money." If you can't find it online, call the customer service number on the back of your new card.
You'll be asked to enter the amount you want to transfer. You can transfer less than your full old balance if you want — some people transfer only the high-interest portion and leave a small amount on the old card. The new issuer will tell you the maximum you can transfer (usually based on your credit limit on the new card).
Enter your old card number and confirm the transfer amount. The new issuer will calculate and show you the balance transfer fee before you confirm. Review this number carefully — it will be added to your new card balance.
Step 4: Wait for the transfer to complete
The new card issuer will send a payment to your old card issuer. This takes 5 to 14 business days. During this time, keep making at least the minimum payment on your old card. If you stop paying and the transfer hasn't posted yet, you could be charged a late fee or see your interest rate jump.
You can track the transfer's progress in your new card's online account. Most issuers show the status as "pending," "in progress," or "complete." Once it shows complete, log into your old card's account and confirm the balance has dropped by the transfer amount.
Step 5: Pay down the balance during the promotional period
Now that the balance is on your new card at 0% interest, your goal is to pay it down as much as possible before the promotional rate ends. Set up automatic payments if you can — even $200 or $300 per month adds up over 12 months.
Do not use the new card for new purchases during this period. Any new purchases will accrue interest at the regular purchase APR (which is usually higher than the old card's rate). Treat the new card as a payoff tool, not a spending tool. Keep your old card open but unused — closing it can hurt your credit score.
Mark your calendar for the day the promotional period ends. If you still have a balance on that date, the remaining amount will start accruing interest at the regular rate. Knowing this date helps you plan how aggressively to pay down the balance.
What to do if the transfer is denied or delayed
If your new card issuer denies the transfer, it's usually because your credit limit on the new card is too low. You can request a credit limit increase, or you can transfer a smaller amount. Some issuers will increase your limit within hours if you ask.
If the transfer is taking longer than 14 business days, contact the new card issuer's customer service. Delays sometimes happen when the old card issuer's system is slow to process the payment, but 14 days is the standard window. If it's been longer, the issuer may need to resend the payment.
Frequently Asked Questions
Can I transfer a balance from a store credit card to a regular credit card?
Yes. Store cards are treated like any other credit card for balance transfer purposes. The process is identical — you'll need the store card number and the issuer's name. Some store card issuers process transfers more slowly, so expect the full 14 business days.
What happens to my old credit card after the transfer?
The old card remains open with a zero or near-zero balance. Leave it open — closing it can lower your credit score by reducing your total available credit. Use it occasionally (a small purchase every few months) to keep the account active, then pay it off in full.
Do I have to transfer my entire balance?
No. You can transfer any amount up to your new card's credit limit. Some people transfer only the portion with the highest interest rate and leave the rest on the old card. This strategy works if you're confident you can pay off the transferred balance before the promotional period ends.
What if I can't pay off the balance before the 0% period ends?
Any remaining balance will start accruing interest at the regular purchase APR when the promotional period expires. If you know you won't pay it off in time, consider a balance transfer to another card with a new 0% offer — but only if the new transfer fee is lower than the interest you'd pay on the remaining balance.
Does a balance transfer hurt my credit score?
A balance transfer typically causes a small, temporary dip in your credit score because the new card issuer runs a hard inquiry and you're opening a new account. This dip usually recovers within a few months. Over time, the transfer can help your score by lowering your credit utilization (the percentage of available credit you're using).