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 request the transfer from the new card's issuer, they pay off your old card's balance, and you then owe that amount to the new card instead. The main reason to do this is to reduce the interest you pay while you work down the debt.
Most balance transfer offers come with a temporary low or zero interest rate — often 0% for 6 to 21 months, depending on the card and the issuer's current offers. After that period ends, the regular interest rate kicks in. There is usually a one-time fee of 3% to 5% of the amount you transfer, charged upfront and added to your new balance.
The math is straightforward: if you owe $5,000 at 18% interest and move it to a card with 0% for 12 months and a 3% transfer fee, you pay $150 in fees but save roughly $900 in interest over that year — a net gain of $750. The catch is that you have to pay down the balance before the promotional rate expires, or you will owe interest at the regular rate on whatever remains.
Key Takeaways
- A balance transfer moves your debt to a new card with a lower interest rate, usually 0% for a set number of months, but includes a one-time fee of 3% to 5%.
- You need an active credit card account with available credit at least as high as the balance you want to transfer.
- The transfer request happens through the new card's issuer, either online, by phone, or by mail, and typically completes within 7 to 14 business days.
- You must pay down the transferred balance before the promotional rate ends, or you will owe the regular interest rate on any remaining amount.
- During the promotional period, focus all extra payments on the transferred balance to avoid carrying a balance into the higher-rate period.
Check your credit and find a card with a balance transfer offer
Before you start, know your credit score. Most cards with 0% balance transfer offers require a credit score of 670 or higher, and the best offers go to scores above 740. You can check your score free through your bank's website, through a service like Credit Karma or AnnualCreditReport.com, or by asking your current card issuer directly.
Once you know your score, search for balance transfer cards. Major issuers like Chase, Capital One, Citi, American Express, and Discover all offer them. Compare the length of the 0% period, the transfer fee, and any other perks. A card with 0% for 18 months and a 3% fee is usually better than one with 0% for 12 months and a 5% fee, because you have more time to pay down the balance without interest.
Read the fine print on the issuer's website. Some cards charge the transfer fee as a percentage of the amount transferred; others charge a flat fee. Some 0% offers explore only to transfers, not to new purchases, so any new charges you make will accrue interest when ready at the regular rate. Knowing this upfront prevents surprises later.
Gather the information you need before explore
Have your current credit card statement handy. You will need the account number, the exact balance you want to transfer, and the card issuer's name. You will also need your Social Security number, date of birth, and current address.
Decide how much to transfer. You do not have to transfer your entire balance — you can move part of it to the new card and leave the rest on the old card. This can be useful if you have multiple cards or if you want to keep some credit available on the new card for emergencies. However, transferring as much as possible usually makes sense, because the new card's rate is lower.
Check the new card's credit limit before you explore. If you are approved for $6,000 and you want to transfer $8,000, the issuer will only transfer what fits within your credit limit. You can request a higher limit after approval, but that takes extra time.
Submit your balance transfer request
Most issuers let you request a balance transfer online, by phone, or by mail. Online is fastest — you can usually complete it in 10 minutes. Call the number on the back of your new card or visit the issuer's website and log into your account. Look for a link labeled "Balance Transfer," "Transfer a Balance," or "Manage Your Account."
Enter the old card's account number, the balance you want to transfer, and the issuer's name. Double-check the account number — if you enter it wrong, the transfer may fail or go to the wrong account. The issuer will show you the transfer fee and the promotional rate before you confirm. Review it, then submit.
If you explore for the card and the balance transfer at the same time, the process takes longer — usually 7 to 14 business days for approval, then another 7 to 14 days for the transfer itself. If you already have the card, the transfer alone typically takes 7 to 14 business days. Some issuers offer faster transfers for an extra fee; ask when you submit the request.
Track the transfer and stop using the old card
After you submit the request, the new card's issuer will send you a confirmation with a reference number. Save this. You can use it to check the status of your transfer online or by calling customer service.
While the transfer is processing, stop using the old card. Any new charges you make will not be transferred and will stay on the old card at the old interest rate. If you need to use a card during this time, use a different one or wait until the transfer completes.
Once the transfer shows as complete in your new card's account, verify that the old card's balance has dropped by the amount you transferred. Log into both accounts to confirm. If the transfer did not go through or only partially went through, contact the new card's issuer right away — there may be an issue with the account number or the old card's issuer may have blocked it.
Make a payment plan to pay off the balance before the rate expires
The promotional period is your window to pay down the debt without interest. Calculate how much you need to pay each month to clear the balance before the 0% period ends. If you transferred $5,000 and have 12 months, you need to pay at least $417 per month. If you have 18 months, you need at least $278 per month.
Set up automatic payments from your bank account to the new card. This removes the risk of missing a payment and triggering a penalty interest rate. Most issuers let you set up autopay online in a few minutes. Pay more than the minimum if you can — any extra goes straight to the principal and reduces the total interest you will owe after the promotional period ends.
Mark your calendar for one month before the 0% period expires. At that point, check your balance. If you still owe money, you have a few options: pay it off in full before the rate changes, transfer it again to another 0% card if you may have access to, or accept that the remaining balance will accrue interest at the regular rate. Do not let this date surprise you.
Manage your credit score during and after the transfer
A balance transfer can temporarily lower your credit score because the new card's issuer will do a hard inquiry and because your credit utilization — the percentage of your available credit you are using — may change. This is normal and usually recovers within a few months as you pay down the balance.
Keep the old card open after the balance is transferred, even if the balance is zero. Closing it will lower your available credit and may hurt your score further. Just do not use it. If the issuer closes it for inactivity, that is fine — you do not need to do anything.
Do not open new cards or take on new debt while you are paying off the transferred balance. Each new card or loan inquiry and each new account can lower your score and make it harder to may have access to for future credit at good rates. Focus on paying down what you have.
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 will need to transfer to a card from a different issuer. Check the issuer's website or call to confirm their policy before you explore.
What happens if I miss a payment during the promotional period?
Missing a payment usually triggers a penalty interest rate, which is much higher than the regular rate and may explore when ready to your entire balance, even if the promotional period has not ended. Set up automatic payments to avoid this. If you do miss a payment, call the issuer right away — some will waive the penalty if it is your first miss.
Can I make new purchases on the new card while paying off the transferred balance?
You can, but new purchases usually accrue interest at the regular rate when ready, not at the 0% promotional rate. The 0% offer typically applies only to the transferred balance. Avoid new purchases until the transferred balance is paid off, or use a different card.
What if I cannot pay off the balance before the promotional rate ends?
You can transfer the remaining balance to another 0% card if you may have access to, though each transfer has a fee. Alternatively, you can pay what you can and accept interest on the remainder at the regular rate. Some people do multiple transfers in a row to keep the rate low, but this only works if you are actively paying down the principal each time.
Does a balance transfer hurt my credit score?
Yes, temporarily. The hard inquiry and new account lower your score by a few points, and your credit utilization may increase. However, as you pay down the balance over the next few months, your score usually recovers and may end up higher than before, because you will have less total debt.