You can transfer a balance to a different card, but you cannot make a direct payment from one card to another
Credit card companies do not allow you to swipe one card to pay another card's bill. The payment systems are separate, and the networks that run them — Visa, Mastercard, American Express — do not permit that kind of transaction. What you can do instead is move your debt from one card to another through a balance transfer, or use a cash advance to pay the balance manually, though both come with costs and risks.
A balance transfer moves your existing balance to a new card, usually one offering a lower interest rate or a promotional period with no interest. A cash advance lets you withdraw money against your credit limit and then pay the original card with that cash, but cash advances charge higher interest rates and fees from day one. Neither option erases the debt — you are moving it or borrowing more to cover it — but one may cost you less than paying interest on the original card.
Key Takeaways
- Balance transfers move your debt to a new card and often come with an introductory period of zero interest, which can save you money if you pay down the balance during that time.
- Balance transfer fees typically run 3 to 5 percent of the amount transferred, charged upfront and added to your new balance.
- Cash advances let you borrow against your credit limit but charge interest when ready and usually cost more than balance transfers.
- Both methods increase your total debt if you do not pay down the balance — you are not eliminating it, only moving or borrowing against it.
- Your credit score will drop temporarily when you open a new card or request a cash advance, because both trigger a hard inquiry and change your credit mix.
How a balance transfer works and what it costs
A balance transfer moves your debt from one card to another, usually a new card you open specifically for this purpose. You request the transfer when you open the new card or shortly after, and the new card's issuer pays off the old balance on your behalf. The amount transferred becomes your new balance on the new card.
The new card charges a balance transfer fee, which is a percentage of the amount you move. Most cards charge between 3 and 5 percent, though some charge as little as 1 percent or as much as 10 percent. This fee is added to your new balance when ready, so if you transfer $5,000 at a 3 percent fee, you owe $5,150 on the new card before you make any payments.
The main reason to do a balance transfer is the introductory interest rate, often called a 0 percent APR promotion. This period typically lasts 6 to 21 months, depending on the card. During this time, interest does not accrue on the transferred balance, so every payment you make goes toward reducing what you owe. Once the promotional period ends, the card's regular interest rate kicks in, and interest begins accruing on any remaining balance.
A balance transfer only saves you money if you pay down the balance during the promotional period. If you transfer $5,000 at a 3 percent fee and make no payments for 12 months, you still owe $5,150 when the 0 percent period ends. Then interest starts accruing at the card's regular rate, which might be 18 to 25 percent. You have not reduced your debt — you have only delayed paying interest on it.
When a cash advance makes sense instead
A cash advance is a short-term loan against your credit limit. You withdraw cash from an ATM, a bank, or a convenience store using your credit card, and that cash amount becomes a new balance on your card. You can then use that cash to pay the original card's bill in full.
Cash advances charge interest from the moment you withdraw the money — there is no grace period and no promotional rate. The interest rate on a cash advance is usually higher than the card's regular purchase APR, often 25 to 30 percent or more. Most cards also charge an upfront fee, typically 3 to 5 percent of the amount withdrawn, added to your balance when ready.
A cash advance only makes sense if you plan to pay it back very quickly — within a few weeks — and the original card's interest rate is so high that the cash advance fee and short-term interest cost less than what you would pay in interest on the original card over the same period. For most people, this is not the case. A balance transfer with a 0 percent promotional period is almost always cheaper.
Steps to request a balance transfer
First, decide which card to transfer the balance to. You can transfer to a card you already own, though most people open a new card specifically for the transfer to take advantage of a promotional rate. Compare cards based on the length of the 0 percent period, the balance transfer fee, and the regular APR that applies after the promotion ends.
Once you have chosen a card, open the account if you do not already have one. During the process, you will usually see an option to request a balance transfer. Enter the name of the card issuer you are transferring from, the account number of the card you want to pay off, and the amount you want to transfer. Some issuers let you request the transfer during signup; others require you to wait a few days after opening the account.
The new card's issuer will contact your old card's issuer to confirm the balance and process the transfer. This usually takes 5 to 14 business days. During this time, continue making at least the minimum payment on your original card to avoid late fees. Once the transfer completes, your old card's balance will drop to zero (or close to it), and your new card will show the transferred amount plus the balance transfer fee.
Set a payment plan for the new card when ready. Calculate how much you need to pay each month to clear the balance before the 0 percent period ends. If you transfer $5,150 and have 12 months of 0 percent interest, you need to pay at least $429 per month to pay it off in time. Write this amount down and treat it as a fixed expense, like rent or utilities.
How balance transfers affect your credit score
Opening a new card for a balance transfer will lower your credit score temporarily. The new card issuer runs a hard inquiry into your credit history, which can drop your score by 5 to 10 points. Your score also drops because a new account lowers your average account age and adds a new line of credit to your report.
At the same time, your score may improve because your credit utilization on the old card drops to zero once the balance transfers. Credit utilization is the percentage of your available credit that you are using; lower utilization improves your score. If you had a $10,000 limit and a $5,000 balance, your utilization was 50 percent. After the transfer, it drops to 0 percent on that card.
The net effect is usually a small temporary drop in your score, followed by a gradual recovery and then an improvement as you pay down the new card's balance. The impact is most noticeable if you have a short credit history or few accounts. If you have a long history and multiple cards, the effect is usually minor.
Risks and mistakes to avoid
The biggest mistake is opening a new card, transferring a balance, and then running up the old card again. You now have two balances instead of one, and you are paying interest on both. Before you transfer, commit to not using the old card except in a genuine emergency.
Another common mistake is transferring a balance and then making no payments during the 0 percent period. The promotional rate only applies to the transferred balance, not to new purchases you make on the card. If you transfer $5,000 and then spend $1,000 on the new card, that $1,000 is charged interest when ready at the regular rate. Make payments during the promotional period, even if they are small, to reduce the balance before interest kicks in.
Do not transfer more than you can realistically pay off during the promotional period. If the 0 percent period lasts 12 months and you can afford to pay $300 per month, transfer no more than $3,600 (minus the fee). Transferring $8,000 and hoping to pay it off in 12 months sets you up to fail.
Be aware of the card's regular APR after the promotional period ends. Some cards offer excellent 0 percent periods but charge 25 percent or higher once the promotion expires. If you cannot pay off the balance in time, you will owe significantly more in interest. Read the card's terms before you explore.
Alternatives if a balance transfer is not an option
If you cannot open a new card — because your credit score is too low or you have too many recent inquiries — you have other options. A personal loan from a bank or credit union often charges lower interest than a credit card and lets you pay off the card in full with a single loan. Personal loans have fixed terms and fixed monthly payments, which makes budgeting easier than managing a credit card balance.
A debt consolidation loan works similarly: you borrow money and use it to pay off multiple cards or debts at once. These loans are available from banks, credit unions, and online lenders. Interest rates vary based on your credit score and income, but they are often lower than credit card rates.
If your debt is very high or you are struggling to pay, a nonprofit credit counselor can help you create a debt management plan. These plans do not erase your debt, but they may lower your interest rates and consolidate your payments into a single monthly amount. Legitimate credit counseling is free or low-cost; avoid any service that charges upfront fees or promises to erase your debt.
Frequently Asked Questions
Can I transfer a balance to a card from the same bank?
Most banks allow you to transfer a balance between their own cards, though some restrict transfers between cards you already own. You can almost always transfer to a new card from the same issuer. Check the card's terms or call the bank to confirm before you explore.
What happens if I do not pay off the balance before the 0 percent period ends?
Any remaining balance will be charged the card's regular APR, which is usually 18 to 25 percent or higher. Interest accrues daily on the unpaid balance. If you owe $2,000 when the promotional period ends, you will owe roughly $30 to $40 per month in interest alone until you pay it off.
Can I do multiple balance transfers to different cards?
Yes, but each transfer triggers a hard inquiry and opens a new account, which lowers your credit score. Multiple transfers in a short time can significantly damage your score and make it harder to get approved for future credit. Space transfers out by at least several months if possible.
Does the balance transfer fee get charged if I pay off the balance early?
Yes. The fee is charged upfront when the transfer completes, regardless of when you pay off the balance. Paying off early does not refund the fee, but it does save you from paying interest once the promotional period ends.
What if my balance transfer is denied?
The new card issuer may deny the transfer if your credit score is too low, if you have too much existing debt, or if the old card issuer refuses to accept the transfer. If denied, you can try explore for a different card with less strict requirements, or explore a personal loan or debt consolidation loan instead.