What a balance transfer is and how it works
A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You contact the new card issuer, give them your old card details, and they pay off that balance for you. You then owe the new card issuer instead of the old one.
The main reason to do this is to reduce how much interest you pay while you're paying down the debt. If your current card charges 22% annual interest and you move to a card charging 0% for the first 12 months, you stop accumulating interest during that window — but only on the amount you transferred, and only if you don't use the new card for new purchases.
Balance transfers are not free. Most cards charge a transfer fee, typically 3% to 5% of the amount you move. So transferring $5,000 might cost $150 to $250 upfront. That fee gets added to your new balance, but it's usually still worth it if the interest rate difference is large enough.
Key Takeaways
- A balance transfer moves your debt to a new card, usually with a lower interest rate or a 0% promotional period that lasts a set number of months.
- You pay a transfer fee (typically 3% to 5% of the amount moved) upfront, added to your new balance on the new card.
- The 0% rate or lower rate applies only to the transferred balance, not to new purchases you make on that card.
- You need to know your current card number, the balance you want to transfer, and your credit limit on the new card before you start.
- After the promotional period ends, any remaining balance reverts to the card's regular interest rate, so you should plan to pay it down during the 0% window.
Check your credit score and find cards that will accept you
Balance transfer cards are typically offered to people with good to excellent credit — usually a score of 670 or higher, though some cards require 700+. If your score is lower, you may not be approved, or you may be offered a card with a higher interest rate or shorter promotional period.
Before you explore, check what cards are available and what their terms are. Look for the length of the 0% promotional period (common lengths are 6, 12, 18, or 21 months), the transfer fee, and the regular interest rate that kicks in after the promotion ends. Compare at least two or three cards so you understand your options.
You can research cards on the issuer's website or on comparison sites, but do not submit an process yet. Each process triggers a hard inquiry on your credit report, which can lower your score slightly. explore only when you've decided which card you want.
Gather your current card information and decide how much to transfer
Have your current credit card in front of you. You'll need the card number, the balance you want to transfer, and the account number (usually printed on the card or your statement). You should also know your current interest rate and how much interest you're paying per month — this helps you understand what you'll save.
Decide how much of your balance to transfer. You don't have to transfer everything. If you have a $10,000 balance and a $7,000 credit limit on the new card, you can transfer $7,000 and leave $3,000 on the old card. However, transferring less means you're paying interest on the amount you leave behind, so transfer as much as your new card's credit limit allows.
Also check whether the new card has a minimum transfer amount. Some cards require you to transfer at least $500 or $1,000. If your balance is smaller than that, you may not be able to use that particular card.
explore for the new card and initiate the transfer
Once you've chosen a card, complete the process on the issuer's website or by phone. You'll provide your personal information, income, employment details, and Social Security number. The issuer will check your credit and typically give you a decision within minutes to a few days.
If you're approved, you'll receive a new card number and a credit limit. At this point, you can initiate the balance transfer. Most issuers let you do this online through your new account portal, by phone with customer service, or through the process itself.
When you initiate the transfer, you'll enter the old card's number, the amount you want to transfer, and confirm the transfer fee. The new issuer will then contact your old card issuer and arrange payment. You do not send money yourself — the two card companies handle it between them.
Monitor the transfer and stop using the old card
The transfer usually takes 5 to 14 business days to complete. During this time, you'll see the balance on your old card remain the same, and the new balance will appear on your new card once the transfer posts. You can track the progress through your new card's online account or by calling customer service.
Once the transfer is complete, stop using the old card for new purchases. You can keep the account open to preserve your credit history, but do not charge anything new to it. If you do, you'll be paying interest on those new charges at the old card's regular rate, which defeats the purpose of the transfer.
If you close the old card when ready, it can hurt your credit score because it reduces your available credit and shortens your credit history. It's better to leave it open with a zero balance.
Create a payoff plan for the promotional period
The 0% rate is temporary. If you have 12 months interest-free, you need to pay down as much as possible during those 12 months. After that, any remaining balance will be charged the card's regular interest rate, which is often 18% to 25%.
Calculate how much you need to pay each month to clear the balance before the promotion ends. If you transferred $5,000 and have 12 months, you need to pay at least $417 per month (plus the transfer fee that was added). Write this amount down and set up automatic payments if possible, so you don't miss a payment.
Missing even one payment can end the promotional rate early on some cards, so set a calendar reminder for your payment due date. Pay more than the minimum if you can — every extra dollar reduces the amount that will be charged interest after the promotion ends.
Understand what happens when the promotional period ends
When the 0% period expires, the remaining balance on your new card will start accruing interest at the card's regular rate. This rate is set by the issuer and varies based on your creditworthiness, but it's typically between 18% and 25%.
If you still owe $2,000 when the promotion ends and the regular rate is 22%, you'll start paying roughly $37 per month in interest alone. This is why it's critical to pay down as much as possible during the promotional window.
Some people do a second balance transfer to another 0% card before the first promotion ends, moving the remaining balance to a new card with another interest-free period. This works if you have good credit and can find another card with a promotional offer, but each transfer adds another fee, so do the math before you commit to this strategy.
Frequently Asked Questions
Can I transfer a balance from one card to the same issuer?
No. Most card issuers do not allow you to transfer a balance from another card they issued to you. You must transfer to a card from a different bank or issuer. Check the card's terms before you explore to confirm this rule.
What if I can't pay off the balance before the 0% period ends?
Any remaining balance will be charged the regular interest rate once the promotion ends. If you know you won't be able to pay it off in time, consider doing another balance transfer to a different card with a new 0% offer, or look into a personal loan at a fixed rate, which might be cheaper than credit card interest.
Does a balance transfer hurt my credit score?
Yes, but usually only temporarily. The hard inquiry from the process lowers your score by a few points, and opening a new account temporarily lowers your average account age. However, the transfer itself can help your score over time by lowering your credit utilization ratio on your old card.
Can I make new purchases on the card I transferred the balance to?
Yes, but new purchases are not covered by the 0% promotional rate. They're charged the card's regular interest rate from day one. Keep new purchases to a minimum while you're paying down the transferred balance, or use a different card for everyday spending.
What if my transfer is denied or only partially approved?
If the issuer denies the transfer, it's usually because your credit limit is too low or the old card issuer won't allow it. If only part of your requested amount is approved, you can try again later or contact customer service to ask why. The amount you didn't transfer stays on your old card at its original interest rate.