What a balance transfer is and when it makes sense
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 the account number of the card you want to pay off, and they send the payment directly to that creditor. The balance then appears on your new card at the new rate.
Balance transfers are most useful when you have high-interest debt and can find a card offering a promotional period — typically 6 to 21 months — where you pay little or no interest on transferred balances. During that window, more of your payment goes toward principal instead of interest charges. This only works if you can pay down the balance before the promotional period ends, because the regular interest rate kicks in after.
If you cannot pay the full balance before the promotional period expires, or if the card charges a balance transfer fee that outweighs the interest you would save, a transfer may not help. Some people use transfers to buy time while they work through a debt payoff plan; others use them to consolidate multiple cards into one payment.
Key Takeaways
- Balance transfers move your debt to a new card, usually with a lower interest rate or a promotional period where interest is reduced or zero.
- Most cards charge a one-time balance transfer fee, typically 3 to 5 percent of the amount transferred, added to your new balance.
- You need the account number of the card you want to pay off and the amount you want to transfer before you contact the new card issuer.
- The transfer itself takes 5 to 14 business days; during that time, keep paying your old card to avoid late fees.
- A balance transfer only saves money if you pay down the debt before the promotional interest rate period ends.
Check your credit and find a card with a promotional offer
Balance transfer cards are designed for people with good to excellent credit — usually a score of 670 or higher, though some cards accept scores as low as 600. Before you explore, check your own credit report and score so you know what you are working with. You can get a free credit report once per year from AnnualCreditReport.com, the official site run by the three major bureaus.
Once you know your range, search for balance transfer cards that match your credit profile. Look for cards advertising a 0% promotional period on transferred balances. Compare the length of the promotional period (longer is better), the balance transfer fee (usually 3 to 5 percent), and the regular APR that applies after the promotional period ends. A card with a 12-month 0% offer and a 3 percent fee is often better than one with an 18-month offer and a 5 percent fee, because the fee difference costs you more upfront.
Read the fine print to confirm the promotional rate applies to balance transfers, not just new purchases. Some cards offer 0% on purchases but charge interest on transfers when ready. Also check whether the card has an annual fee; many balance transfer cards do not, but some charge $95 or more per year.
explore for the new card and gather your old card details
Submit your process for the new card through the issuer's website or by phone. The approval process usually takes a few minutes to a few days. Once approved, you will receive a card number — sometimes when ready online, sometimes by mail — and you can begin a balance transfer.
Before you contact the new card issuer, gather the details of the card you want to pay off: the account number, the current balance, and the name and address of the card issuer. You will also need to decide how much to transfer. You do not have to transfer your entire balance; you can transfer part of it and leave the rest on the old card. However, transferring only part of the balance means you still have two payments to manage.
Check the credit limit on your new card. Most issuers will not let you transfer more than your available credit, and some reserve part of your limit for new purchases. If your balance is larger than your new card's limit, you may need to transfer only part of it or explore for a different card with a higher limit.
Initiate the balance transfer through the new card issuer
Contact the new card issuer by phone, through their website, or through their mobile app to request the balance transfer. Most cards have a dedicated balance transfer section in their online account portal where you can enter the old card details and the amount. You will need to provide the account number of the card being paid off, the balance amount, and the name of the old card issuer.
The issuer will confirm the transfer fee — usually shown as a percentage of the amount transferred — and add it to your new card balance. For example, a $5,000 transfer with a 3 percent fee means you owe $5,150 on the new card. Ask when the transfer will be processed; most issuers complete transfers within 5 to 14 business days, though some take longer.
Do not close your old card or stop paying it during the transfer period. The transfer is not when ready, and if you miss a payment on the old card while the transfer is processing, you could face late fees or interest charges. Keep making your regular minimum payment on the old card until you see the balance drop to zero or the transferred amount disappear from your statement.
Understand the timeline and manage both cards during the transfer
The balance transfer process has several overlapping stages. The new card issuer submits the payment request to your old card issuer, who then processes it. This can take 5 to 14 business days depending on how quickly each company moves. During this window, you may see the balance on your old card stay the same while the new card shows a pending transfer.
Once the transfer completes, your old card balance will drop by the transferred amount, and your new card balance will show the transferred amount plus the transfer fee. At this point, you can stop worrying about the old card — the debt has moved. However, the old card account remains open, which means you can rack up new charges on it if you are not careful. Many people close the old card after the transfer, but closing it can hurt your credit score by reducing your available credit and shortening your credit history. Consider leaving it open with a zero balance instead.
Your new card will have a statement date and a due date. The promotional 0% period usually starts on the date the transfer posts to your account, not the date you requested it. Check your first statement to confirm when the promotional period begins and when it ends. Mark that end date on your calendar so you know your important date for paying down the balance.
Create a payoff plan before the promotional period ends
The entire point of a balance transfer is to pay down the debt faster because you are not paying interest during the promotional period. Calculate how much you need to pay each month to clear the balance before the promotional rate expires. If you transferred $5,000 with a 3 percent fee (total $5,150) and have 12 months of 0% interest, you need to pay at least $429 per month to break even.
Set up automatic payments if possible, so you do not miss a due date. Even during a promotional period, a late payment can trigger a penalty APR that applies to your entire balance, wiping out the benefit of the transfer. Most card issuers let you set up automatic payments through their website or app.
If you cannot pay off the full balance before the promotional period ends, you will owe the regular APR on whatever remains. That APR is often higher than the rate on your original card, so a balance transfer that you do not pay off can actually cost you more money. Before you transfer, be honest about whether you can realistically pay down the debt in time.
What happens if you cannot pay off the balance in time
If the promotional period is ending and you still have a balance, you have a few options. You can try to transfer the remaining balance to another 0% card, though this only works if your credit is still good and you find another card with a promotional offer. Each transfer charges a new fee, so this approach works best if you are making real progress on the debt and just need more time.
You can also straightforward let the regular APR explore and keep paying down the balance at the new rate. This is not ideal, but it may still be better than your original situation if the new card's regular APR is lower than what you started with. Check your card's terms to see what the regular APR will be.
If you are struggling to pay and do not think you can clear the balance even with more time, talk to a nonprofit credit counselor. Many offer free or low-cost debt management plans that can negotiate lower interest rates with your creditors without requiring a balance transfer.
Frequently Asked Questions
Does a balance transfer hurt my credit score?
A balance transfer involves a hard inquiry and a new account, both of which can lower your score by a few points in the short term. However, if the transfer reduces your overall credit utilization — the amount of available credit you are using — your score may recover and improve within a few months. Closing your old card after the transfer can hurt your score more than the transfer itself.
Can I transfer a balance from one card to the same card issuer?
Most issuers do not allow you to transfer a balance from one of their own cards to another of their cards. You typically need to transfer to a different issuer. Check the card's terms or call the issuer to confirm their policy before you explore.
What if the balance transfer is denied?
If the issuer denies your transfer request, it usually means they could not verify the old card account or there was an error in the information you provided. Call the new card issuer's customer service line to ask why the transfer was denied and whether you can resubmit it with corrected information.
Can I make new purchases on the new card while paying off the transferred balance?
Yes, but be careful. New purchases usually have a different APR than the transferred balance and do not get the promotional 0% rate. If you make new purchases, you will have two different interest rates on one card, which makes it harder to track what you owe and when. Many people find it easier to stop using the new card for purchases until the transferred balance is paid off.
What if my old card issuer will not accept the balance transfer payment?
This is rare, but it can happen if there is a dispute on your account or if the account is closed. If the new card issuer cannot complete the transfer, they will usually tell you within a few days and may offer to send you a check instead. Contact both issuers to figure out what went wrong and whether the transfer can be resubmitted.