The basic steps to transfer a balance

A balance transfer moves money you owe on one credit card to a different card, usually one with a lower interest rate. You do not move the money yourself. Instead, you tell the new card's issuer (the bank or company that owns it) the name of your old card, your account number, and how much to transfer. The new issuer pays off that amount on the old card, and you now owe it to them instead.

The process takes about 5 to 14 business days from the moment you request it. During that time, you should keep making payments on your old card as usual—do not assume the transfer has gone through just because you requested it. Once the transfer completes, the old card's balance drops to zero (or near zero if you had other charges), and the new card shows the transferred amount as your new balance.

Most balance transfers come with a fee, usually 3 to 5 percent of the amount you transfer. This fee is added to your new balance on day one. So if you transfer $5,000 with a 4 percent fee, you owe $5,200 on the new card before you make a single payment.

Key Takeaways

  • The new card's issuer handles the transfer directly to your old card—you do not move money yourself.
  • Balance transfer fees typically run 3 to 5 percent of the amount transferred and are added to your new balance immediately.
  • The transfer takes 5 to 14 business days, so keep paying your old card until it shows a zero balance.
  • Most balance transfer offers include a low or zero interest rate for a set period (often 6 to 21 months), after which the regular rate kicks in.

How to find and request a balance transfer offer

Start by checking what cards you already have. Log into your current credit card accounts online or call the customer service number on the back of each card. Many issuers display balance transfer offers in your account dashboard, or you can ask a representative directly if they have any current offers available to you.

If your existing cards do not have offers, you can shop for new cards that do. Search for "balance transfer credit card" and look at the offer details on each card's website. Pay attention to three things: the length of the promotional period (how long the low rate lasts), the regular interest rate after the promotion ends, and the annual fee, if any. A card with no annual fee and a 12-month promotional period at 0 percent is common; some cards offer 18 or 21 months.

Once you have chosen a card, you can request the balance transfer during the application process if you are opening a new account, or through your online account if you already have the card. You will need to provide the account number of the card you are transferring from and the exact amount you want to move.

What information you need before you start

Gather these details before you contact the new card's issuer or log in to request the transfer:

  • Your old card's account number (on the front of the card or in your online account).
  • The name of the bank or company that issued the old card.
  • The exact balance you want to transfer, or the maximum amount the new card will allow.
  • Your current address and phone number.

Some issuers set a transfer limit based on your credit limit on the new card. For example, if your new card has a $10,000 credit limit, you might only be able to transfer $9,500 (leaving room for the fee and new purchases). The issuer will tell you the maximum during the request process.

Why the promotional period matters more than you think

The low or zero interest rate on a balance transfer is temporary. After the promotional period ends—whether that is 6 months or 21 months—the regular interest rate takes over. If you still owe money at that point, interest starts accruing at the full rate, which can be 15 to 25 percent depending on your creditworthiness and the card.

This is why the length of the promotional period is critical. A longer period gives you more time to pay down the balance before interest kicks in. If you transfer $5,000 and have 12 months to pay it off interest-free, you need to pay about $417 per month to clear it before the rate jumps. If you only have 6 months, you need to pay about $833 per month.

Calculate whether you can realistically pay off the transferred balance during the promotional period. If you cannot, the savings from the lower rate may not be worth the transfer fee and the hassle of managing another account.

Fees and costs you will encounter

The balance transfer fee is the most obvious cost. As mentioned, it typically runs 3 to 5 percent of the amount transferred. Some cards offer a 0 percent transfer fee for a limited time (often the first 60 days after you open the account), so timing matters if you are opening a new card specifically for this transfer.

The second cost is the annual fee, if the card charges one. Some cards with strong balance transfer offers have no annual fee; others charge $95 to $450 per year. If you plan to close the card after you pay off the balance, the annual fee may not matter. If you plan to keep it open, factor the annual cost into your decision.

There is no cost to request a balance transfer, and the issuer will not charge you if the transfer is denied. However, if you are opening a new card to do the transfer, a hard inquiry will appear on your credit report and may temporarily lower your credit score by a few points.

What happens to your old card after the transfer

After the balance transfer completes, your old card's balance drops to zero. The card itself remains open unless you close it. You can still use it to make new purchases, though most people do not—the point of a balance transfer is to consolidate debt onto one card.

Closing the old card after the transfer is complete is a personal choice. Keeping it open does not hurt you (as long as there is no annual fee), and it can actually help your credit score because it preserves your available credit and your credit history length. Closing it removes that available credit from your total, which can slightly lower your score.

If you do keep the old card open, do not rack up new debt on it. The whole purpose of the transfer was to move that balance to a card with a better rate. Adding new charges to the old card defeats that purpose.

Common mistakes to avoid

The biggest mistake is not paying off the transferred balance before the promotional period ends. When the low rate expires, interest starts accruing on whatever balance remains. If you transferred $5,000 and only paid down $2,000 during the promotional period, you now owe interest on the remaining $3,000 at the full rate. That interest compounds daily, so the balance grows faster than you might expect.

Another mistake is making new purchases on the new card while paying off the transferred balance. Most cards apply your payments to the transferred balance first (which has the low rate), leaving new purchases to accrue interest at the regular rate. This means you are paying interest on new charges while the transferred balance sits there. Keep new purchases off the card until the transfer is paid off.

A third mistake is missing a payment. Even one late payment can end the promotional rate early on some cards, and it will damage your credit score. Set up automatic payments or calendar reminders to make sure you pay on time every month.

Frequently Asked Questions

Can I transfer a balance from one card to the same card?

No. You cannot transfer a balance from a card to itself. The new card must be issued by a different bank or company. Some people open a new card with the same issuer (like a different Discover card), and that counts as a different card for balance transfer purposes.

What if my balance transfer is denied?

Denials usually happen because your credit score is too low, your income is too high relative to your debt, or you have too many recent inquiries on your credit report. If denied, wait a few months, pay down other debts, and try again. You can also contact the issuer to ask why you were denied—sometimes they will reconsider or suggest a different card.

Do I have to transfer my entire balance?

No. You can transfer part of your balance and leave the rest on the old card. This is useful if the new card's transfer limit is lower than your total balance, or if you want to keep some debt on a card with a lower interest rate already. Just remember that the part you leave behind will continue to accrue interest at the old card's rate.

How does a balance transfer affect my credit score?

A balance transfer typically lowers your score slightly in the short term due to the hard inquiry and the new account. Over time, it can improve your score if it lowers your overall credit utilization (the percentage of your total available credit that you are using). However, if you close the old card after the transfer, your score may dip again because you are reducing your available credit.

Can I do multiple balance transfers to different cards?

Yes, but each transfer has its own fee and its own promotional period. Spreading your debt across multiple cards can be useful if you have a large balance and want to maximize the time you have at low rates. However, managing multiple cards and multiple payment deadlines increases the risk of missing a payment, which can end the promotional rates early.