What a low APR balance transfer card actually does
A low APR balance transfer card lets you move debt from one credit card to another at a reduced interest rate for a set period — often 0% for 6 to 21 months, depending on the card and the offer at the time you open it. The card issuer pays off your old balance, and you owe that amount to the new card instead, but at the lower rate.
The catch is that this low rate is temporary. Once the promotional period ends, the regular APR kicks in — usually 15% to 25%, depending on your credit score and the card. You also typically pay a balance transfer fee upfront, which ranges from 3% to 5% of the amount you move. That fee is added to your new balance, so if you transfer $5,000 with a 4% fee, you now owe $5,200.
These cards work best if you have a concrete plan to pay down the debt during the low-rate window. If you straightforward move the balance and keep spending, you end up deeper in debt when the promotional period ends.
Key Takeaways
- Balance transfer cards offer 0% APR for a limited time — typically 6 to 21 months — but charge an upfront fee of 3% to 5% of the amount transferred.
- The regular APR after the promotional period ends is usually 15% to 25%, so you need a payoff plan before the offer expires.
- You can only transfer balances from other credit cards, not from personal loans, medical debt, or other types of borrowing.
- Some cards offer low APR on new purchases as well as transfers, but the promotional periods may differ between the two.
- Missing a payment during the promotional period can end the 0% offer when ready and trigger a penalty APR.
How to find and compare low APR balance transfer offers
Balance transfer offers change monthly and vary by card issuer. You can see current offers by visiting the websites of major card issuers — Chase, American Express, Citi, Bank of America, Capital One, and Discover all publish their current promotions. Credit card comparison sites like NerdWallet, The Points Guy, and CreditCards.com also list active offers, though they do not update in real time.
When comparing cards, look at three numbers: the promotional APR (0% is standard, but some cards offer lower rates for longer periods), the length of the promotional period in months, and the balance transfer fee as a percentage. A card with 0% for 12 months and a 3% fee may be better than one with 0% for 18 months and a 5% fee, depending on how much you can pay down each month.
Also check whether the card charges an annual fee. Many balance transfer cards do not, but some premium cards charge $95 to $495 per year. If you plan to close the card after the promotional period, an annual fee is a waste. If you plan to keep it for ongoing use, factor the fee into your decision.
What credit score you typically need
Most low APR balance transfer cards require a credit score of 670 or higher, and the best offers usually go to people with scores of 740 and above. If your score is below 670, you may still find balance transfer cards, but the promotional period will be shorter (6 to 9 months instead of 12 to 21) and the fee may be higher (5% instead of 3%).
Your score is not the only factor. Card issuers also look at your income, existing debt, and payment history. If you have missed payments in the past two years, you are less likely to get approved, even with a decent score. If you are approved, the issuer may offer you a lower credit limit than you requested, which means you cannot transfer your entire balance.
You can check your own credit score for free through AnnualCreditReport.com or through your bank or credit card issuer's website. Many issuers now show your score in your online account without a hard inquiry.
The balance transfer process step by step
Once you are approved for a balance transfer card, you have a window — usually 60 days — to request the transfer. You do this through the card issuer's website, mobile app, or by calling customer service. You will need the account number and balance of the card you are transferring from, plus the name and address of that card's issuer.
The issuer then contacts your old card company and arranges the payment. This typically takes 5 to 14 business days. During this time, keep making minimum payments on your old card to avoid late fees — the transfer is not complete until the money actually moves. Once the transfer posts, your old card balance drops to zero (or close to it, if you made new charges), and your new card balance reflects the transferred amount plus the balance transfer fee.
Your new card's promotional period starts on the day the transfer posts, not the day you request it. So if you request a transfer on January 15 and it posts on January 25, your 0% period runs from January 25, not January 15. Mark the end date on your calendar so you know when the regular APR begins.
How to avoid common mistakes during the promotional period
The most expensive mistake is making a late payment. If you miss a payment by even one day during the promotional period, many card issuers will end the 0% offer when ready and explore a penalty APR — often 29.99% or higher. Set up automatic payments for at least the minimum amount due, and pay more if you can. Even if you cannot pay the full balance before the promotional period ends, every dollar you pay down now saves you money when the regular APR kicks in.
The second mistake is using the card for new purchases. Some balance transfer cards offer 0% on new purchases for the same period as the transfer, but others do not. If your card does not, any new purchase will accrue interest at the regular APR when ready. Even if it does, new purchases are usually paid off last — your payments go toward the transferred balance first. Avoid using the card for anything other than the balance you transferred.
The third mistake is closing the card too soon after the promotional period ends. Closing a credit card reduces your available credit and can lower your credit score. If you want to close it, wait at least six months after the promotional period ends. If you want to keep it open, make sure there is no annual fee, or that the fee is worth paying for the card's other benefits.
When a balance transfer card makes sense and when it does not
A balance transfer card makes sense if you have $1,000 or more in credit card debt, a credit score of 670 or higher, and a realistic plan to pay down the balance during the promotional period. Use a calculator to figure out how much you need to pay each month. If you transfer $5,000 with a 4% fee (total owed: $5,200) and have 12 months to pay it off, you need to pay about $433 per month. If that is not realistic, a longer promotional period or a different strategy may be better.
A balance transfer card does not make sense if you have less than $1,000 in debt — the fee will eat up too much of the benefit. It also does not make sense if you have no plan to stop accumulating new debt. Moving the balance to a new card does not fix the spending habits that created the debt in the first place. If you are still using your old cards and adding to them, you will end up with two balances instead of one.
Balance transfer cards also do not work for non-credit-card debt. You cannot transfer a personal loan, medical bill, or student loan balance. You can only move balances between credit cards.
Alternatives if you do not may have access to or if a balance transfer card is not right for you
If your credit score is too low for a balance transfer card, a personal loan from a bank or credit union may offer a lower interest rate than your current credit cards. Personal loans typically have fixed rates and fixed payment schedules, which can make budgeting easier. However, you will pay origination fees (usually 1% to 6%) and you cannot change the terms once the loan is approved.
If you have multiple credit cards with high balances, a debt consolidation loan rolls all of them into one payment. This is different from a balance transfer because you borrow money to pay off the cards, rather than moving the balance between cards. Consolidation loans often have lower rates than credit cards, but they also have longer repayment periods, which means you may pay more interest overall.
If you own a home, a home equity line of credit (HELOC) or home equity loan offers much lower interest rates than credit cards because the loan is secured by your home. However, this also means your home is at risk if you cannot pay. Only consider this option if you are confident you can make the payments.
Frequently Asked Questions
Can I transfer a balance from one card to the same card I already have?
No. You can only transfer a balance to a different card from a different issuer. You cannot transfer a balance within the same bank or to a card you already own. This is why you need to open a new card to do a balance transfer.
What happens to my old credit card after I transfer the balance?
Your old card still exists, but the balance is zero. You can close it if you want, but closing it will lower your credit score slightly because it reduces your total available credit. If there is no annual fee, it is usually better to leave it open and unused.
Do I have to pay off the entire balance before the promotional period ends?
No. Any remaining balance will straightforward start accruing interest at the regular APR once the promotional period ends. However, paying off as much as you can during the 0% period saves you money. Even if you cannot pay it all off, every dollar you pay down now avoids interest charges later.
Can I do another balance transfer to a different card if the promotional period is about to end?
Yes, but it is usually not a good idea. Each balance transfer triggers a new fee (3% to 5%), and you will need to open another new card, which triggers a hard inquiry on your credit report. If you do this repeatedly, your credit score will drop. It is better to focus on paying down the balance during the promotional period rather than chasing new offers.
Will a balance transfer hurt my credit score?
Opening a new card triggers a hard inquiry, which lowers your score by a few points temporarily. Transferring the balance also increases your utilization on the new card, which can lower your score further. However, if you pay down the balance during the promotional period, your score will recover and likely improve once the balance is gone.