Most credit cards do not award points on balance transfers
When you move a balance from one card to another, the transfer itself does not earn rewards points on most cards. The balance transfer is a transaction between your two accounts, not a purchase. Your card issuer treats it differently from the spending that normally generates points.
Some cards do offer points on balance transfers, but this is uncommon and usually only on premium cards with annual fees. Even then, the earning rate is typically lower than what you get for regular purchases. You should check your specific card's rewards terms before assuming you will earn anything.
The reason most issuers exclude balance transfers from rewards is straightforward: they want to discourage the practice. Balance transfers cost the card company money through the introductory rate they offer you. Paying you points on top of that low rate would make the offer unprofitable for them.
Key Takeaways
- Balance transfers do not earn rewards points on the vast majority of credit cards, even if your regular purchases do.
- The balance transfer fee itself (usually 3 to 5 percent) is a separate charge that points will not offset.
- A few premium cards offer points on balance transfers, but the rate is lower than their purchase rate and these cards typically charge an annual fee.
- The real value of a balance transfer comes from the low introductory interest rate, not from rewards.
How balance transfer rewards work on the rare cards that offer them
If your card does offer points on balance transfers, you will find the earning rate listed in the rewards section of your card agreement or on the issuer's website. It is usually 0.5 to 1 point per dollar, compared to 1.5 to 5 points per dollar on purchases depending on the card.
The points post to your account the same way purchase points do—typically within one to three billing cycles after the transfer completes. You can then redeem them for cash back, travel, or statement credits, depending on your card's rewards program.
Even on cards that do offer balance transfer points, the math often does not work in your favor. If you pay a 3 percent balance transfer fee on a $5,000 transfer, you are out $150 immediately. Earning 0.5 points per dollar on that $5,000 gives you 2,500 points. If those points are worth 1 cent each (a common redemption rate), you get $25 back—a net loss of $125 after the fee.
Why the balance transfer fee matters more than points
The balance transfer fee is charged upfront and added to your balance. Most cards charge between 3 and 5 percent of the amount transferred, though some cards (usually those with annual fees) charge 0 percent. A $10,000 transfer at 4 percent costs you $400 immediately.
This fee is separate from any rewards you might earn. Points cannot reduce or eliminate the fee—you pay it regardless. When you are deciding whether a balance transfer makes sense, the fee and the introductory interest rate are what matter. Points, if they exist on your card, are a minor bonus at best.
Some people focus on the points and miss the bigger picture: a balance transfer is worthwhile only if the introductory rate saves you more money in interest than the fee costs you. If you transfer $5,000 at 4 percent fee (costing $200) to a card with 0 percent for 12 months, you save the interest you would have paid on your old card. That savings is the real benefit, not the points.
Cards that do offer balance transfer points
Premium travel cards and some premium cash back cards occasionally offer points on balance transfers. Examples include certain American Express business cards and some high-tier cards from Chase and Capital One, though the specific offerings change and vary by card version.
These cards almost always charge an annual fee—typically $95 to $450 per year. The points on balance transfers are meant to offset that fee for customers who use the card for multiple purposes. If you are only doing a balance transfer and not using the card for regular spending, the annual fee will likely cost you more than any points you earn.
To learn about your card offers balance transfer points, log into your online account or call the customer service number on the back of your card. Ask specifically whether balance transfers earn points and at what rate. Do not assume based on the card's name or category—the terms vary widely.
What to focus on instead of points
When you are comparing balance transfer offers, prioritize the introductory interest rate and how long it lasts. A 0 percent rate for 18 months is more valuable than any points you might earn. The length of the promotional period determines how much interest you actually save.
Calculate the total cost of the transfer: the fee plus any interest you will pay after the promotional period ends (if you have not paid off the balance by then). Then compare that to what you would pay if you kept the balance on your current card. That comparison tells you whether the transfer is worth doing.
If points are offered, treat them as a small bonus rather than a reason to choose one card over another. A card with a lower fee and longer 0 percent period is almost always the better choice, even if it offers no points on the transfer.
What happens to points after the balance is paid off
Once you pay off the transferred balance, any points you earned on that transfer stay in your rewards account. You can use them for anything your card's program allows—cash back, travel bookings, gift cards, or statement credits.
Points do not expire as long as your account remains open and in good standing, though some cards have different rules. Check your card agreement for the specific expiration policy. If you close the card, you typically lose any unused points, so plan your redemption before closing an account.
Frequently Asked Questions
Can I earn points on the balance transfer fee itself?
No. The fee is a charge, not a purchase or transfer. It does not earn points on any card. The fee is added to your balance and you pay interest on it (unless you are in a 0 percent promotional period), but it generates no rewards.
Do I earn points on the interest I pay during the promotional period?
No. Interest charges do not earn points. Only the original transferred amount may earn points if your card offers them on balance transfers. Interest accrued after the promotional period ends also does not earn points.
What if I make a purchase on the same card after the balance transfer?
Purchases earn points at your card's normal purchase rate, separate from any balance transfer points. The balance transfer and new purchases are tracked separately on your account. Points from both will accumulate in your rewards balance.
Should I choose a card based on balance transfer points?
No. The introductory interest rate and fee are far more important. A card offering 0 percent for 18 months with a 3 percent fee is better than a card offering 0 percent for 12 months with 0 percent fee plus points, because the longer period saves you more money. Run the numbers on interest savings first.
Do balance transfers from one card to another count as a purchase for rewards?
No. A balance transfer is not a purchase. It is a transaction between accounts. Even if you use a check or online transfer to move the money, it is still classified as a balance transfer, not a purchase, and does not earn purchase rewards.