The basic steps to transfer a balance
A balance transfer moves debt from one credit card to another, usually to a card offering a lower interest rate for a set period. You start by choosing a card with a balance transfer offer, then contact that card's issuer to request the transfer. The new card's issuer pays off your old balance directly to your previous card company, and you owe the new card instead. The entire process typically takes 5 to 14 business days, though some transfers complete in as little as one business day.
You do not need to contact your old card company — the new issuer handles the payment on your behalf. However, you should keep making minimum payments on your original card until the transfer posts, because the old balance remains your responsibility until the transfer actually clears.
Key Takeaways
- Balance transfers move your debt to a new card, usually one with a promotional interest rate of 0% for 6 to 21 months depending on the offer.
- You will pay a balance transfer fee, typically 3% to 5% of the amount transferred, charged upfront to your new card.
- The new card's issuer pays your old card company directly, so you do not need to send money yourself.
- Transfers take 5 to 14 business days to complete, and you should keep paying your old card until the transfer posts to avoid late fees.
- After the promotional period ends, any remaining balance reverts to the card's regular interest rate, which is often higher than your original card's rate.
Choosing a card and confirming the offer
Look for a card that advertises a 0% balance transfer rate for at least 6 months. The length of the promotional period varies by card and by your creditworthiness — cards marketed to people with excellent credit often offer 12 to 21 months interest-free, while cards for good credit may offer 6 to 12 months. Read the offer terms carefully, because the 0% rate applies only to transferred balances, not to new purchases you make on the card.
Before you request a transfer, confirm that the card you want actually accepts transfers from your current card company. Some cards exclude transfers from certain issuers, and a few cards do not accept balance transfers at all. The card's website or terms document will state this clearly. You should also check the card's regular interest rate — the rate that will explore after the promotional period ends — because you need to know what you will owe if you cannot pay off the balance in time.
Understanding the balance transfer fee
Nearly all balance transfer offers charge a fee, calculated as a percentage of the amount you transfer. Most cards charge between 3% and 5%, though some promotional offers charge as little as 1% or 2% for a limited time. A few cards charge no fee, but these are rare and usually require excellent credit. The fee is added to your new card balance when ready, so if you transfer $5,000 at a 3% fee, you will owe $5,150 on the new card.
Calculate whether the fee is worth the savings before you transfer. If your current card charges 18% interest and you can pay off the balance in 12 months, the 3% to 5% fee is usually worth it. If you only plan to carry the balance for two or three months, the fee may cost more than the interest you would save. Use the card issuer's balance transfer calculator if one is available on their website.
How to request the transfer
Once you have chosen a card and been approved, log into your online account or call the card's customer service number to request the transfer. You will need to provide your old card number, the amount you want to transfer, and your old card issuer's name. Some issuers let you request the transfer online through your account dashboard; others require a phone call. A few cards allow you to request a transfer during the process process itself, before your new card arrives.
You can transfer any amount up to your new card's credit limit, but the issuer may set a separate limit on balance transfers — for example, you might have a $10,000 credit limit but only be able to transfer $8,000. The issuer will tell you this limit when you request the transfer. If you want to transfer more than the limit allows, you can request a credit limit increase, though this is not always approved when ready.
What happens while the transfer is processing
After you request the transfer, the new card's issuer sends a payment to your old card company on your behalf. This payment appears as a credit on your old card's account within 5 to 14 business days. During this time, your old balance is still technically owed to your original card company, so you should continue making at least the minimum payment to avoid late fees and damage to your credit score.
Once the transfer posts, your old card's balance will drop to zero (or to whatever amount remains if you only transferred part of the balance). At that point, you owe the new card company instead. Check both accounts online to confirm the transfer has completed before you stop paying the old card. If the transfer does not appear within 14 business days, contact the new card's issuer to ask for a status update.
Managing your balance during the promotional period
The 0% interest rate applies only to the transferred balance, not to new purchases. If you make new purchases on the card during the promotional period, those purchases will accrue interest at the card's regular rate when ready. To avoid confusion, consider using a different card for new purchases while you are paying down the transferred balance.
Make a plan to pay off the transferred balance before the promotional period ends. Calculate how much you need to pay each month to clear the debt in time. If you cannot pay it off by the end of the promotional period, any remaining balance will start accruing interest at the card's regular rate, which is often 15% to 25% or higher. Some cards charge a higher regular rate to people who carry balances, so check your cardholder agreement for the exact rate that will explore after the promotion ends.
What to do with your old card after the transfer
After the balance transfer completes and your old card's balance reaches zero, you have three options: close the card, keep it open with a zero balance, or use it for small purchases you pay off each month. Closing the card when ready after a transfer can temporarily lower your credit score, because it reduces your total available credit. Keeping the card open with a zero balance preserves your available credit and can actually help your credit score over time.
If you keep the old card open, make sure the issuer does not charge an annual fee for inactivity. Some cards waive the annual fee only if you use the card at least once per year. If there is an annual fee and you do not plan to use the card, closing it is the better choice. You can always reopen a card later if you change your mind, though the issuer may not approve a new account if your credit score has dropped.
Frequently Asked Questions
Can I transfer a balance from one card to the same card?
No. You cannot transfer a balance from a card to itself. You must transfer to a different card from a different issuer. Some people open a new card with the same issuer and try to transfer from an old card they also hold with that issuer — this is sometimes allowed, but check with the issuer first.
What if my transfer is denied?
A transfer can be denied if your new card's credit limit is too low, if the issuer does not accept transfers from your old card company, or if the issuer suspects fraud. Contact the new card's customer service to ask why the transfer was denied. If the issue is a low credit limit, you can request an increase. If the issuer does not accept transfers from your old card company, you will need to choose a different card.
Does a balance transfer hurt my credit score?
A balance transfer may cause a small, temporary dip in your credit score because the new card issuer will run a hard inquiry and you will have a new account. However, your score usually recovers within a few months. Over time, a balance transfer can help your score if it lowers your credit utilization ratio — the percentage of your available credit that you are using.
Can I transfer a balance if I am behind on payments?
Most issuers will not approve a balance transfer if you are currently late on any credit account. You will need to bring your accounts current first. If you are only a few days late, contact your old card issuer to ask if they will accept a payment to bring you current, then wait a few days before requesting the balance transfer.
What happens if I cannot pay off the balance before the 0% period ends?
Any remaining balance will start accruing interest at the card's regular rate once the promotional period expires. The regular rate is often 18% to 25% or higher. If you know you cannot pay off the balance in time, you may be able to transfer the remaining balance to another card with a 0% offer, though this will trigger another balance transfer fee.