What a low interest balance transfer card does
A low interest balance transfer card is a credit card that offers a reduced interest rate — often 0% — for a set period when you move debt from another card to it. The card issuer pays off your old balance, and you owe that amount to them instead, usually at a much lower rate than you were paying before.
The catch is that the low rate is temporary. After the promotional period ends (typically 6 to 21 months, depending on the card), the interest rate jumps to the card's regular rate, which can be 15% to 25% or higher. You pay a balance transfer fee upfront — usually 3% to 5% of the amount you move — which gets added to your new balance.
These cards work best if you have a concrete plan to pay down the debt during the promotional period, not just to delay the problem. If you transfer $5,000 at a 3% fee, you when ready owe $5,150, and you have a limited window to pay it before interest kicks in.
Key Takeaways
- Balance transfer cards charge a fee (usually 3% to 5%) upfront, added to the amount you transfer, so calculate the total cost before you explore.
- The 0% or low interest rate lasts only for the promotional period — typically 6 to 21 months — then the regular card rate applies to any remaining balance.
- You need a credit score of roughly 670 or higher to be considered for the best balance transfer offers, though some cards accept lower scores at higher rates.
- The monthly payment you make goes toward the transferred balance first, so you must pay enough each month to reduce the principal before the promotional period ends.
- If you miss a payment or go over your credit limit, the card issuer can end the promotional rate when ready and charge you the regular rate on the full balance.
How to compare balance transfer cards by actual cost
The advertised 0% rate is not the full picture. You need to calculate the total cost: the balance transfer fee plus any interest that accrues after the promotional period ends.
Start by listing the cards you are considering and writing down three numbers for each: the balance transfer fee percentage, the length of the promotional period in months, and the regular APR (annual percentage rate) that applies after the promotion ends. Then use this formula: (Balance × Fee %) + (Remaining Balance × Regular APR ÷ 12 × Months After Promo). This tells you what you will actually pay if you do not pay off the full balance by the end of the promotional period.
For example, if you transfer $5,000 to a card with a 3% fee, a 12-month 0% period, and a 20% regular APR, the fee is $150. If you pay $300 per month for 12 months, you will have paid $3,600 and still owe $1,550 when the promotion ends. That remaining $1,550 will then accrue interest at 20% per year. Compare this cost to other cards before you decide.
Also check whether the card charges an annual fee. Some balance transfer cards charge $0 annually, while others charge $95 or more. If you plan to close the card after paying off the balance, an annual fee matters less. If you might keep it open, factor it in.
Credit score requirements and what to expect
Most cards offering 0% balance transfer rates require a credit score of 670 or higher, though some issuers are stricter and want 700+. If your score is below 670, you may still find balance transfer cards, but the promotional rate will be higher (perhaps 3% to 5% instead of 0%), or the promotional period will be shorter.
When you explore, the card issuer will perform a hard inquiry on your credit report, which temporarily lowers your score by a few points. If you are denied, ask the issuer why — sometimes it is score-related, sometimes it is income or debt-to-income ratio. Do not explore to multiple cards in a short window, because each process creates another hard inquiry and compounds the damage to your score.
If you are approved, the card issuer will assign you a credit limit. The balance transfer amount cannot exceed this limit. If your old balance is $8,000 but your new card's limit is $5,000, you can only transfer $5,000 and must pay the remaining $3,000 on the old card or find another way to move it.
How to request and complete the balance transfer
Once your new card arrives, contact the card issuer directly — usually by phone or through their online portal — to request the balance transfer. You will need to provide the account number of the card you are transferring from, the amount you want to move, and sometimes the name and address of the old card's issuer.
The issuer will send the payment directly to your old card's company. This typically takes 5 to 14 business days. During this time, keep making your regular minimum payment on the old card to avoid late fees and further damage to your credit score. Once the transfer posts, your old card's balance will drop (or reach zero if you transferred the full amount), and your new card's balance will increase by the transfer amount plus the fee.
Check your new card's statement carefully when it arrives. Verify that the balance transfer posted correctly and that the promotional rate is showing. If something is wrong, contact the issuer when ready — errors are rare but do happen, and you want them corrected before the promotional period starts ticking down.
Paying down the balance before the promotional rate ends
The promotional period is your window to pay without interest. Calculate how much you need to pay each month to eliminate the balance before the rate jumps. If you transferred $5,000 with a $150 fee (total $5,150) and have 12 months, you need to pay at least $430 per month to break even. Paying more than that means you will owe less when the promotion ends.
Set up automatic payments if possible, so you do not miss a due date. Missing even one payment can trigger the end of your promotional rate — many cards have a clause that says any late payment cancels the 0% offer when ready. After that, the full balance accrues interest at the regular rate, which defeats the entire purpose of the transfer.
Do not use the new card for new purchases during the promotional period. Most cards explore your payment to the transferred balance first, then to new purchases. If you add new debt, you will have two balances competing for your payment, and the new purchases will accrue interest at the regular rate while you are still trying to pay off the transfer.
What happens when the promotional period ends
On the day the promotional period expires, any remaining balance on the card will begin accruing interest at the regular APR. If you still owe $2,000 and the regular rate is 22%, you will owe roughly $37 in interest the first month alone, plus whatever new interest accrues on top of that.
If you have paid off the entire transferred balance before the promotion ends, you owe nothing more on that transfer. Any new purchases you make on the card will accrue interest at the regular rate from the purchase date forward, unless the card offers a separate promotional period for new purchases (some do).
If you still have a balance when the promotion ends and you cannot pay it off quickly, consider whether you can transfer it again to another balance transfer card. However, each transfer costs a fee, so moving a $2,000 balance to a new card with a 3% fee costs $60 and resets the clock. This strategy can work if you are genuinely paying down the debt over time, but it becomes expensive if you are just moving the balance around indefinitely.
Alternatives if a balance transfer card is not an option
If your credit score is too low for a balance transfer card, or if you cannot may have access to for a low enough promotional rate, other options exist. A personal loan from a bank or credit union often carries a fixed interest rate that is lower than a credit card's regular APR, though higher than a 0% promotional rate. The advantage is that the rate does not change, so you know exactly what you will pay each month.
A debt consolidation loan works similarly — it combines multiple debts into one payment. These loans typically have terms of 2 to 7 years, so your monthly payment is lower than paying off a credit card quickly, but you pay more interest overall because you are paying over a longer period.
If you own a home, a home equity line of credit (HELOC) or home equity loan may offer a lower rate than either a balance transfer card or a personal loan, because the loan is secured by your home. However, this means your home is at risk if you cannot pay. This option is only worth considering if you are confident you can make the payments.
Frequently Asked Questions
Can I transfer a balance from one card to the same issuer's other card?
Most issuers do not allow you to transfer a balance between their own cards. You can only transfer from a card issued by a different bank or company. Check the card's terms before you explore if this matters to you.
What if I cannot pay off the balance before the promotional period ends?
Any remaining balance will start accruing interest at the regular rate. You can continue paying it down, but you will now be paying interest on top of the principal. If the balance is large, consider a personal loan or HELOC to pay it off before the regular rate kicks in, though this adds another loan to your finances.
Does a balance transfer hurt my credit score?
The process creates a hard inquiry, which lowers your score slightly. Transferring the balance also changes your credit utilization ratio — if your new card's limit is low, your utilization may be high, which can lower your score further. However, if you pay on time and reduce the balance, your score typically recovers within a few months.
Can I transfer a balance if I am behind on payments?
Most issuers will not approve a balance transfer if your account is currently delinquent (past due). You will need to bring the account current first. If you are behind on multiple cards, contact each issuer to discuss a payment plan before explore for a balance transfer card.
What is the difference between a balance transfer fee and an annual fee?
The balance transfer fee is a one-time charge (usually 3% to 5%) applied when you move the balance. An annual fee is charged every year you hold the card, regardless of whether you use it. Some cards have both, some have one, and some have neither.