The basic steps for moving a balance
A balance transfer moves debt you owe on one credit card to a different card, usually one with a lower interest rate. You do not pay off the first card yourself — the new card's issuer pays it for you, and you then owe that new issuer instead.
The process has four main steps. First, you open an account with the new card issuer (or use an existing account if you already have one with them). Second, you request a balance transfer, either during the process or afterward through your online account or by phone. Third, the new issuer contacts your old card issuer, confirms your balance, and sends the payment directly to them. Fourth, your old card balance drops to zero, and your new card shows the transferred amount as your new debt.
The entire process usually takes 5 to 14 days from the time you request the transfer. During that window, you still owe your old card issuer — do not stop making payments until you see the balance actually hit zero on your old account.
Key Takeaways
- The new card issuer pays off your old card directly, so you never handle the money yourself.
- Balance transfer fees typically run 3 to 5 percent of the amount you move, charged to your new card balance.
- The low introductory rate (often 0 percent) applies only to the transferred balance, not to new purchases you make on the card.
- You must request the transfer through the new card issuer — your old card issuer cannot initiate it for you.
- Keep making payments on your old card until the balance shows zero, because the transfer takes one to two weeks to complete.
Understanding balance transfer fees and how they work
Almost every balance transfer comes with a fee, charged by the new card issuer. This fee is a percentage of the amount you transfer — typically 3 to 5 percent, though some cards charge as low as 1 percent or as high as 8 percent. A few cards (rare) charge no fee at all, but only during a limited promotional window.
The fee is added to your new card balance when ready. If you transfer $5,000 with a 4 percent fee, you owe $5,200 on the new card from day one. This means the math only works in your favor if the interest rate you save is large enough to cover the fee before the introductory period ends.
For example: You owe $5,000 at 22 percent on your old card. A new card offers 0 percent for 12 months with a 3 percent fee. The fee costs you $150, but you save roughly $1,100 in interest over that year. Even after paying the fee, you come out ahead by $950. However, if you only transfer $1,000, the fee is $30 and your interest savings might be only $220 — still worth it, but the math is tighter.
What happens to your old card after the transfer
Once the transfer completes and your old card balance reaches zero, the card itself stays open. You can still use it to make new purchases, though most people close it or stop using it to avoid running up new debt.
Closing the card when ready after the transfer can hurt your credit score slightly, because it reduces the total credit available to you (called your credit limit). If you want to protect your score, leave the card open but unused. If you do use it for new purchases, those charges will accrue interest at the card's regular rate — not at the promotional rate — so avoid that if you can.
Some people keep the old card open with a $0 balance as a backup. Others call the issuer and request a lower credit limit, which reduces temptation without closing the account entirely.
Introductory rates and what they actually cover
The 0 percent rate (or low promotional rate) that attracts people to balance transfer cards applies only to the balance you transfer. Any new purchases you make on that card will accrue interest at the regular purchase rate, which is often 18 to 25 percent.
The promotional period also has an end date. A card might offer "0 percent for 12 months," which means 12 months from the date you open the account, not from the date the transfer completes. If you explore on January 15 but the transfer does not post until February 1, the 12 months still started on January 15. Read the terms carefully to know your exact important date.
After the promotional period ends, any remaining balance on the transferred amount will start accruing interest at the card's regular APR (annual percentage rate). This is why it matters to pay down the balance before the period ends — if you still owe $3,000 when the 0 percent window closes, that $3,000 will suddenly start charging you interest.
How to request a balance transfer
You can request a balance transfer in three ways: during the credit card process, through your online account after approval, or by calling the card issuer's customer service line.
If you request during process, you will usually see a field asking for the name of your old card issuer, your account number, and the amount you want to transfer. The issuer will verify this information and process the transfer automatically once your new account is approved.
If you explore first and request the transfer later, log into your new card's online account and look for a "Balance Transfer" or "Transfers" section. You will enter the same information: old issuer name, account number, and transfer amount. Some cards also let you request by phone — the customer service representative will ask the same questions and submit the request on your behalf.
You can transfer from any card issuer to any other — there is no restriction. You can also split a transfer across multiple cards if your new card issuer allows it (for example, transferring $3,000 from Visa A and $2,000 from Visa B to a new card).
Timing and what to watch for during the transfer
The transfer typically takes 5 to 14 business days. During this time, your old card balance is still there, and you still owe it. Do not assume the transfer has failed just because a week has passed — this is normal.
You can track the transfer's progress in two places: your new card's online account (which may show a pending transfer) and your old card's account (which will eventually show the balance dropping). Some issuers send email updates; others do not.
If more than two weeks have passed and the transfer has not completed, contact the new card issuer's customer service line. They can check the status and tell you whether the old issuer has received and processed the payment. Delays are uncommon but do happen, especially if there is a discrepancy in your account information.
When a balance transfer does not make financial sense
A balance transfer is not always the right move. If your current card's interest rate is already low (under 12 percent), the fee and hassle may not be worth the savings. If you only owe a small amount (under $500), the fee might eat up most of your interest savings.
A balance transfer also assumes you will not run up new debt on the old card. If you transfer $5,000 and then charge another $3,000 on the old card while waiting for the transfer to complete, you have not actually reduced your total debt — you have just moved part of it.
Finally, a balance transfer only works if you have a plan to pay down the balance before the promotional period ends. If you transfer $10,000 at 0 percent for 12 months but only pay $200 per month, you will still owe $7,600 when the rate jumps to 20 percent. At that point, you are back where you started.
Frequently Asked Questions
Can I transfer a balance to a card from the same bank?
Most banks do not allow you to transfer a balance between their own cards. If you have a Chase card and want to move the balance to another Chase card, Chase will usually decline the request. You will need to transfer to a card from a different issuer.
What if my balance transfer is denied?
A transfer can be denied if the new card issuer believes you do not have enough available credit, if there is a discrepancy in your account information, or if the old issuer refuses the payment for some reason. Contact the new issuer's customer service to find out why. You can request a smaller transfer amount and try again.
Does a balance transfer hurt my credit score?
A balance transfer causes a small, temporary dip because the new card issuer runs a hard inquiry on your credit report. Your score may drop 5 to 10 points for a few months. However, once the transfer completes and your old card balance hits zero, your overall credit utilization improves, which can help your score recover.
Can I transfer a balance from a store card or a loan?
Balance transfers work only between credit cards. You cannot transfer a balance from a store card, personal loan, car loan, or medical debt to a credit card. Some balance transfer cards will accept transfers from other card issuers' products, but not from non-card debt.
What if I cannot pay off the balance before the promotional rate ends?
If you cannot pay the full balance before the 0 percent period ends, you have a few options: request a second balance transfer to another card with a promotional rate, negotiate a lower interest rate with the current issuer, or focus on paying down as much as you can before the rate jumps. The more you pay down before the period ends, the less interest you will owe afterward.