The basic steps for transferring a balance
A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You do not pay off the old card yourself — the new card's issuer pays it for you, and you then owe that new issuer instead.
The process has four main steps: open the new card, request the transfer during or right after signup, wait for the issuer to contact your old card company, and then pay down the new card's balance. Most transfers complete within two to three weeks, though some take up to six weeks.
You will need your old card number and the balance you want to move. Some issuers let you request the transfer online or by phone; others require you to specify the amount and old card details on the application itself.
Key Takeaways
- You request the transfer from the new card issuer, not from your old card company — the new issuer handles contacting them.
- The transferred balance usually comes with a temporary lower interest rate (often 0%) that lasts anywhere from six months to 21 months, depending on the card.
- A balance transfer fee of 3% to 5% of the amount moved is charged upfront and added to your new balance.
- The transfer does not close your old card, but you should stop using it while you pay down the new card to avoid carrying two balances.
- You must make at least the minimum payment on the new card on time, or the promotional rate may end early.
When to request the transfer and what information you need
The best time to request a balance transfer is during the application process for the new card, before you are approved. Many issuers ask on the application form itself whether you want to transfer a balance, and if so, how much and from which card. Requesting it at that moment ties the transfer to your new account opening and can speed up processing.
If you did not request it during signup, you can call the new card issuer's customer service line after your card arrives and ask to initiate a transfer. This takes longer — usually an extra week or two — because the issuer has to set up the request separately.
Have your old card number ready, along with the exact balance you want to move (or the total balance if you want to move everything). You will also need the old card issuer's name. The new issuer will contact your old card company directly to arrange payment.
Understanding the promotional rate and the transfer fee
The main reason people do balance transfers is the promotional interest rate, which is usually 0% for a set period. This period varies widely — some cards offer 0% for six months, others for 18 or 21 months. Check the card's terms before you apply, because the length of the promotional period is one of the biggest differences between balance transfer cards.
The promotional rate applies only to the transferred balance, not to new purchases you make on the card. Once the promotional period ends, any remaining balance reverts to the card's regular interest rate, which is typically 15% to 25%. This is why paying down the balance during the promotional period is critical.
Nearly every balance transfer card charges a balance transfer fee, usually 3% to 5% of the amount you move. This fee is added to your new balance immediately. If you transfer $5,000 with a 4% fee, you owe $5,200 on the new card. Some cards waive the fee for transfers completed within the first 60 days of opening the account, so check the terms.
What happens to your old card after the transfer
The transfer does not close your old card. Your old card issuer receives payment from the new issuer and your balance drops to zero, but the account stays open. You can continue using the old card if you want, though most people stop using it while they focus on paying down the new card.
Closing the old card immediately after the transfer can hurt your credit score slightly, because it reduces your total available credit and can raise your credit utilization ratio on remaining cards. If you want to close it, wait until you have paid off the new card's balance or at least paid it down significantly.
If you keep the old card open but unused, check whether it has an annual fee. If it does and you do not plan to use it, closing it makes sense. If there is no annual fee, leaving it open costs you nothing and helps your credit profile.
How long the transfer takes and what to do while you wait
Most balance transfers take 7 to 21 days from the time you request them. Some issuers process them faster if you request during the application, and some take longer if you request after your card arrives. A few issuers take up to six weeks, so check the terms or ask the customer service representative when you request the transfer.
During this time, keep making at least the minimum payment on your old card. The old card is still active and accruing interest until the transfer completes. Missing a payment during the waiting period can damage your credit and may disqualify you from the promotional rate on the new card.
Once the transfer completes, you will see the balance appear on your new card statement. Your old card balance will show zero. At that point, you can stop paying the old card and focus entirely on the new one.
Avoiding common mistakes during a balance transfer
The most common mistake is making new purchases on the new card while paying off the transferred balance. New purchases usually do not get the promotional 0% rate — they accrue interest at the regular rate immediately. If you are trying to pay down the transferred balance during the promotional period, new purchases will slow you down and cost you money in interest.
Another mistake is missing a payment on the new card. If you miss even one payment, the issuer can end the promotional rate early and charge you the regular interest rate on the entire balance, including the transferred amount. Set up automatic minimum payments if you are worried about forgetting.
A third mistake is transferring more than you can realistically pay off during the promotional period. If you transfer $8,000 with a 0% rate for 12 months, you need to pay roughly $667 per month to clear it before interest kicks in. If you cannot commit to that, a smaller transfer or a longer promotional period might be more realistic.
Deciding whether a balance transfer makes sense for you
A balance transfer is worth doing if you have high-interest credit card debt and can pay it down during the promotional period. The math is straightforward: if you owe $5,000 at 20% interest and transfer it to a card with 0% for 18 months and a 4% fee, you pay $200 in fees but save roughly $1,500 in interest — a net gain of $1,300.
A balance transfer is not worth doing if you cannot pay down the balance before the promotional period ends, or if you will rack up new debt on the old card while paying the new one. It is also not worth doing if you have only a small balance, because the transfer fee may eat up most of the interest savings.
If you have multiple high-interest cards, you can do more than one balance transfer to different new cards, each with its own promotional period. This spreads out your debt and gives you multiple windows to pay things down. However, opening several cards in a short time can temporarily lower your credit score, so space them out by a few months if possible.
Frequently Asked Questions
Can I transfer a balance to a card from the same issuer?
Most issuers do not allow you to transfer a balance from one of their own cards to another. You must transfer to a card from a different issuer. If you have two cards from the same bank, you cannot use a balance transfer to move debt between them.
What if my balance transfer is denied?
The issuer may deny a transfer request if the amount exceeds your credit limit, if your credit score dropped between application and approval, or if the old card is in default. If denied, you can request a smaller transfer amount or wait a few months and try again after your credit improves.
Does a balance transfer hurt my credit score?
A balance transfer causes a small, temporary dip in your credit score because the new card application triggers a hard inquiry and lowers your average account age. However, moving debt from a high-interest card to a 0% card usually improves your score within a few months because it lowers your overall credit utilization ratio.
Can I transfer a balance from a store card or a loan?
Most balance transfer cards accept transfers only from other credit cards. Some issuers allow transfers from store cards, but very few allow transfers from personal loans, medical debt, or other types of debt. Check the card's terms before applying if you have non-credit-card debt you want to move.
What happens if I do not pay off the balance before the promotional rate ends?
Any remaining balance will start accruing interest at the card's regular rate, which is typically 15% to 25%. To avoid this, calculate how much you need to pay monthly to clear the balance before the promotional period ends, and set up automatic payments to stay on track.