The basic steps to move your balance

A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You contact the new card issuer, tell them the amount you want to transfer and the account details of your old card, and they pay off that balance on your behalf. The debt then appears on your new card instead.

The process itself takes a few days to a few weeks. The new card issuer sends a payment directly to your old card company—you do not handle the money yourself. Once the transfer clears, you owe the new card issuer instead of the old one, and you start paying interest at the new card's rate (which is often 0% for a set period if you may have access to for a promotional offer).

The catch is that you need to be approved for the new card first, and the card issuer decides how much you can transfer based on your credit score, income, and existing debt. You cannot transfer more than your new card's credit limit, and some issuers cap transfers at less than your full limit.

Key Takeaways

  • Contact your new card issuer with your old card's account number and the transfer amount you want; they handle the payment to your old card company.
  • Balance transfers typically take 5 to 21 days to complete, during which you should keep paying your old card to avoid late fees.
  • Most balance transfer offers include a 0% interest period lasting 6 to 21 months, but you pay a one-time transfer fee of 3% to 5% of the amount moved.
  • After the promotional period ends, interest rates on the new card jump to the regular rate, so plan to pay down the balance before that happens.
  • Your credit score drops slightly when you open a new card and when the transfer increases your utilization on that card, but it usually recovers within a few months.

Before you call the card issuer

Gather the details of the card you want to transfer from: the account number, the exact balance you want to move, and the card issuer's name. Have your Social Security number and current income ready, because the new card issuer will ask for both during the approval process.

Check your credit score beforehand if you can. Most balance transfer cards require a score of 670 or higher, though some accept scores in the 600s. If your score is below 650, you may not be approved, or you may be approved for a smaller transfer amount than you requested. Knowing this ahead of time saves you from applying and getting rejected.

Read the terms of the card you are considering. Write down three things: the length of the 0% promotional period (how many months it lasts), the transfer fee (usually shown as a percentage), and the regular interest rate that kicks in after the promotion ends. The transfer fee is charged upfront and added to your balance, so a $5,000 transfer with a 3% fee costs you $150 immediately.

How the transfer actually happens

Call the new card issuer's customer service number or start the process online through their website. You will be asked to confirm your identity and provide the account number of the card you are transferring from. Tell them the exact dollar amount you want to move.

The issuer will tell you the maximum amount they will transfer based on your credit and income. If that number is lower than what you requested, you can accept the lower amount, decline, or ask if you can reapply later. There is no penalty for declining—you simply do not proceed.

Once you accept, the issuer generates a check or electronic payment to your old card company. This payment is sent in your name, so it counts as a payment on your old account. The transfer typically clears within 5 to 21 days, depending on the two card companies' processing speeds.

During this waiting period, keep making at least the minimum payment on your old card. The transfer has not hit yet, so the balance is still there. Missing a payment now can trigger a late fee and damage your credit score, even though you are in the process of paying it off.

What happens after the transfer clears

Once the transfer posts to your new card, the old card's balance drops to zero (or close to it, if you had other charges on it). Your new card now shows the transferred balance, plus the transfer fee that was added. You now owe this amount to the new card issuer at the promotional interest rate—usually 0%.

You can close the old card once the balance is gone, but you do not have to. Closing it will lower your available credit and may hurt your credit score slightly. Leaving it open with a zero balance actually helps your score over time, as long as you do not rack up new charges on it.

Start paying down the new card's balance immediately. The 0% period is not a free pass—it is a window of time. If you still owe money when the promotional rate expires, the remaining balance will be charged interest at the regular rate, which can be 15% to 25% depending on the card. Calculate how much you need to pay each month to clear the balance before the promotion ends, and set up automatic payments if possible.

The costs and credit impact

The transfer fee is the main cost. It ranges from 3% to 5% of the amount transferred and is charged once, upfront. A $10,000 transfer with a 4% fee costs $400. This fee is added to your balance on the new card, so you are paying interest on it if you do not clear the balance during the promotional period.

Some cards offer 0% transfer fees for a limited time—usually the first 60 days after you open the account. If you can transfer during this window, you save the percentage fee entirely. Check the card's terms to see if this offer applies.

Your credit score will drop by 5 to 10 points when you open the new card (a hard inquiry and a new account both affect your score). It may drop another few points when the transfer posts, because your utilization on the new card jumps up. If you transferred $5,000 and your new card's limit is $10,000, your utilization is now 50%, which is higher than most scoring models prefer. Over time—usually 3 to 6 months—your score recovers as you pay down the balance and the new account ages.

When a balance transfer does not work out

If you are denied for the new card, you cannot do the transfer. A denial usually means your credit score is too low, your debt-to-income ratio is too high, or you have too many recent inquiries on your credit report. You can reapply after 3 to 6 months if you have improved your score or paid down other debts.

If you are approved but for a lower amount than you need, you have two options: transfer the amount you were approved for and pay the rest of the old card down separately, or decline and try a different card issuer. Some cards are more lenient with lower credit scores, though they may offer shorter promotional periods or higher regular interest rates.

If you cannot pay off the balance before the promotional period ends, you will owe interest on whatever remains. The interest rate after the promotion can be 18% to 25%, which means a $3,000 remaining balance could cost $45 to $62.50 per month in interest alone. In this case, a balance transfer only helps if you use the 0% period to pay down a significant portion of the debt.

Timing and planning around the promotional period

The promotional period typically lasts 6 to 21 months, depending on the card. Longer periods are better, but they usually come with higher regular interest rates once the promotion ends. A card offering 18 months at 0% followed by 22% APR gives you more time than one offering 12 months at 0% followed by 18% APR, but the math depends on your balance and how fast you can pay.

Calculate your required monthly payment before you apply. Divide your transferred balance (including the transfer fee) by the number of months in the promotional period. If you transfer $6,000 with a 4% fee ($240), your total is $6,240. Over 18 months, you need to pay $347 per month to clear it before interest kicks in. If that is not realistic for your budget, a shorter promotional period or a smaller transfer amount might be smarter.

Mark the end date of the promotional period on your calendar. Set a phone reminder for one month before it ends so you can check your balance and confirm you are on track. If you will still owe money when the promotion expires, contact the card issuer in advance to see if they offer a second promotional period (some do, though it is not may provide).

Frequently Asked Questions

Can I transfer a balance from a store card or a card from a different bank?

Yes, you can transfer from any credit card, regardless of the issuer. You can also transfer from some store cards if they are issued by a major card company (Visa, Mastercard, American Express). Call the new card issuer if you are unsure whether your specific card qualifies.

What if I make new charges on the new card during the promotional period?

New charges are usually subject to the regular interest rate immediately, not the 0% promotional rate. This means you will pay interest on new purchases even while the transferred balance is at 0%. Avoid new charges during the promotional period, or use a different card for purchases.

Do I have to transfer my entire balance, or can I transfer part of it?

You can transfer any amount up to your new card's limit. You do not have to move the entire old balance. Transferring a portion and paying the rest down on the old card is a valid strategy if the old card's interest rate is lower than you expected or if you want to minimize the transfer fee.

What happens if I miss a payment on the new card?

A missed payment triggers a late fee and can end your promotional 0% rate immediately, even if you are still in the promotional period. The remaining balance then accrues interest at the regular rate. Make automatic minimum payments at minimum to protect the promotion.

Can I do another balance transfer after this one clears?

Yes, you can do multiple balance transfers over time. However, each new card application creates a hard inquiry that affects your credit score, and opening too many cards in a short period can lower your score significantly. Space out balance transfers by at least 6 months if possible.